India: TAMIL NADU: Directive to Tobacco Product Dealers

Source from:  The Hindu Online (in)  02/19/2013

The Commercial Taxes Department has asked dealers and retailers of tobacco products to compulsorily possess valid invoices for the stocks with effect from January 25 to curb tax evasion.

An official release issued by Commercial Taxes Commissioner on Sunday said the department officials recently confiscated gutkha and pan masala products valued at Rs.6.86 crore during inspections all over the State, yielding Rs.2 crore by way of taxes and penalty. However, the officials felt that loss to exchequer would be more than several crore of rupees due to evasion. "The retail-level traders should compulsorily possess valid invoices for the stocks of such commodities they hold. If gutkha and pan masala stocks are kept without valid invoices, necessary action as per the provisions of the law would be taken. Hence, it is requested that all retailers should buy and sell these items with valid invoices only and to refrain from any tax evasion."

Tobacco products such as pan masala, gutkha, chewing tobacco and other similar products attract 20 per cent tax on the point of first sale in this State since November 2011. During 2011-12, the department collected Rs.14.49 crore by way of taxes and up to December, 2012, the revenue collected was Rs.27.63 crore. Enditem