CONSUMERS SUFFER AS TRADERS 'BOOST' PROFITS TO EVADE TAX

 Even as the government adopted the value added tax (VAT) regime, hoping to curb the spiraling cases of tax evasion, the expectations seem to have gone haywire. As always, a section of traders and agents in Uttar Pradesh have improvised novel ways to boost their profits by issuing fake statements for tax evasion. The consumer remains the worst sufferer in the entire episode.In a fresh case of consumer harassment and tax evasion, a leading automobile agency of the city, RNG Motors, has been accused of issuing fake invoices to the customers. “The agency issued a bill stating a total payment of Rs 46,042 after receiving an actual payment of Rs 48,100,” said Abhayanand Shukla, who bought a Bajaj two-wheeler from the dealer on Diwali.Shukla has been a troubled man since then. He had financed his purchase from a bank and now the bank authorities are not ready to sanction the entire amount for the requirement of documentary evidence. “I have been trapped in between the bank and agency dealers and have to shell out the money from my pocket as the bank is threatening to scrap the loan disbursement,” added Shukla. When contacted, the agency owner, Amit Garg, told Business Standard that the agency cannot issue the bill statement of vehicle registration and insurance premium amount paid along with the product, and hence the actual payment is more than the billed amount. However, the agency representative on the other hand, has assured Abhayanand Shukla of refunding the overdue amount and issuing a fresh bill. Kanpur Divisional Commissioner (trade tax), JP Arya assured of requisite action against the guilty traders, if sufficient evidence was found.Regional Transport Officer (RTO) Nirmal Prasad said he had summoned the agency representative to verify the allegations. DS Mishra, a qualified chartered accountant, says such inconvenience has also contributed to the current decline in motorbike sales.Some of the traders even violate the revenue department guideline of citing the trader identification number (TIN) on the bill statements, which leaves no legitimacy in the customer’s claims as TIN is the unique identification in the entire transaction.Since most of customers are unaware of the practice, the exploitation goes on unabated. “They realise it only when confronted by some hurdle in financing or subsequent service and repair,” said Arun Mishra, president of a Lucknow based Indian National Consumer Forum (INCF)