Local body tax evasion: Liquor sellers come under AMC scanner

AURANGABAD: The city's liquor shops, bars and restaurants and beer shops are on the radar of the Aurangabad Municipal Corporation (AMC), with its recently launched drive against dealers evading local body tax (LBT).
Deputy municipal commissioner Suresh Petgaonkar on Tuesday said that some registered dealers in the category were either evading the tax or downplaying their sales."There are nearly 160 registered dealers in the segment, from whom the civic body had collected Rs 11 crore on account of LBT. But we think that the collection figure can go up in the current fiscal," Petgaonkar said.
The LBT department is scrutinising sales figures for the last two financial years of all the dealers in the category. "Although it is difficult to estimate the actual figure of tax evasion, it seems that close to Rs 1crore could be additionally collected in the recent drive," he said.
Petgaonkar said two of the city's famous outlets were recently seized by AMC officials. "We have recovered the outstanding due from both the shopowners. In addition to this, we are planning to take action against three more shops and restaurants," he said.
Liquor shops, bar and restaurants and beer shops fall in the highest LBT slab category of 7 per cent in the AMC's list. On other items, the municipal corporation levies a tax of 4 per cent or less.
Replying to a query on action against other dealers, Petgaonkar said that the civic body had served notices to 1,349 dealers for delaying tax payment. "We are collecting tax with interest from the dealers. In addition to this, we have also issued notices to 2,500 dealers who had not filed their tax returns," he said.
Eyeing consolidation of its revenue through LBT, the AMC will initiate action against dealers who are delaying or not fulfilling their tax liabilities, he said. Highlighting the recent LBT collection figures, Petgaonkar said the first four months of the current financial year had produced Rs 61.88 crore on account of LBT. The civic administration is targeting Rs 180 crore from LBT, while the general body has extended its target to Rs 200 crore.