Introduction
Evasion of taxes is back in the spotlight as Andhra Pradesh Chief Minister Chandrababu Naidu declared that tax defaulters will face strict action. This statement comes amid efforts to boost revenue and ensure fair compliance for all taxpayers and businesses in the state.
Why This Statement Matters
- Rebuilding trust: The CM’s strong message aims to restore confidence in the tax system.
- Revenue push: Andhra Pradesh plans to ramp up revenue collections for welfare and infrastructure.
- Deterrence: The warning acts as a deterrent to habitual evaders.
Key Highlights of the CM’s Tax Compliance Drive
| Point | Details |
|---|---|
| Focus Area | GST, property tax, professional tax |
| Target | Businesses under-reporting turnover |
| Recent Moves | Special audit teams to visit high-risk sectors |
| Penalty Actions | Strict penalties under GST Act and state tax laws |
| Coordination | Joint efforts with GST Department and municipal bodies |
Legal Backing: How Tax Evasion Is Dealt With
Under Indian laws:
GST Act, 2017:
- Section 132: Imprisonment and fines for willful evasion.
- Section 73/74: Penalty and interest for under-reporting.
Income-tax Act, 1961:
- Section 270A: 50% penalty for underreporting, 200% for misreporting.
- Prosecution possible for deliberate concealment.
Expert View:
“Businesses must reconcile GST returns with books regularly and respond to notices on time to avoid harsh penalties,” advises CA Rajesh Varma, tax expert at Efiletax.
How Small Businesses Should Stay Compliant
Actionable steps:
- File returns on or before due dates.
- Maintain proper invoices and records.
- Use registered tax consultants for regular audits.
- Respond to any notices from tax authorities promptly.
- Avoid fake ITC claims – verify supplier filings.
FAQ: Evasion of Taxes in Andhra Pradesh
Q1. What happens if a business evades tax under GST?
Authorities can recover tax dues with penalty and interest, plus imprisonment in severe cases.
Q2. Are there any amnesty schemes?
Currently, no fresh amnesty has been announced, but businesses can voluntarily disclose under Section 73 to reduce penalties.
Q3. How to avoid accidental non-compliance?
Keep books updated, file accurate returns, and hire a trusted tax consultant.
Conclusion
Evasion of taxes is risky and costly. Andhra CM Chandrababu Naidu’s warning is a timely reminder for businesses to tighten compliance. Need help managing your taxes? Talk to Efiletax today for expert filing and compliance support.
Summary
Andhra CM Chandrababu Naidu warns tax evaders: strict penalties await those who dodge GST and other taxes. Learn how to stay compliant and avoid penalties. Trusted tax filing support available with Efiletax.