Raid on Realty Firm for Evading Rs 10cr VAT

Published: 22nd February 2015 06:10 AM  |   Last Updated: 22nd February 2015 06:10 AM   |  A+A-

BENGALURU: The Commercial Tax Department (Enforcement wing) has detected that Bengaluru-based realty firm Nitesh Estates Private Ltd had evaded VAT of at least Rs 10 crore on two projects executed between 2006 and 2013.

During a raid on Saturday, officials recovered nearly 400 files and seized the office. The raids will continue on Monday.

Additional Commissioner (Enforcement) D K Ravi told Express that the two projects were Nitesh Forest Hill,  completed in 2006, and Nitesh Flushing Meadows,  completed in 2013.

According to Ravi, the realty company collected tax from buyers, completed assessment but did not file  returns. “This means they have to pay a VAT at 14.5 per cent besides penalty for delayed payment,” Ravi said, adding that considering the two projects were together worth Rs 135-140 crore, the company has to pay an upfront VAT of Rs 10 crore plus the fine. The Commercial Tax Department is also verifying purchase of machinery worth around Rs 280 crore, for which the entry tax of two per cent has not been paid.

“We will continue the raids on Monday and recover more files. The officials have already taken a back up of the hard discs in the MG Road office,” Ravi said.

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp