Sales Tax racket unearthed

VADODARA, Nov 19: Sales Tax ST Department sleuths recently unearthed a major racket involving avoidance of sales tax by seven companies dealing in steel items during the last three years.

According to ST department sources, though the firms sold steel bearings and angles worth Rs 3.5 crore during the last three years, they did not pay the sales tax. At the prevailing rate of four per cent sales tax on steel goods, the total amount to be recovered from these companies is about Rs 14 lakhs.

ST department authorities, according to sources, have identified bank accounts of these firms and issued notices to bank officials to freeze the accounts with immediate effect and stop all money transactions till further instructions.

The authorities have also frozen bank accounts of one of the parties which purchased goods from these firms.