Surat, a bustling industrial hub, is now grappling with a rising issue of tax evasion among logistic companies that use heavy vehicles for goods transportation. To address the problem, the Surat Regional Transport Office (RTO) has decided to take legal possession of properties belonging to four companies with unpaid taxes totaling nearly Rs 4 crore. Additionally, the RTO has identified another 30 companies that will face similar action in the coming days.
Despite multiple notices served over the past year, these companies have failed to pay the annual heavy vehicle taxes mandated by the RTO. The four companies currently facing property attachment are Essar, Ideal, Krunal Structures, and Excellent Logistics. They collectively owe taxes on 469 heavy vehicles, amounting to Rs 3,87,99,293.
A breakdown of the unpaid taxes reveals staggering numbers. Ideal Company tops the list with 228 vehicles and an outstanding tax bill of Rs 2,24,65,136. Essar Company follows, with 137 heavy vehicles and unpaid taxes amounting to Rs 1,18,61,677. Krunal Structures and Excellent Logistics are also in the defaulters' list, owing Rs 23,98,224 and Rs 20,74,256 respectively on 76 and 18 vehicles.
As a consequence of these unpaid taxes, the RTO will attach the properties of these defaulting companies. This action will impede any future endeavors by the companies to lease or sell their assets, as they will first need to settle their outstanding tax obligations and secure a No Objection Certificate (NOC) from the RTO.
The decision by Surat RTO to take such drastic measures has raised alarm among other tax-evading entities. Industry insiders speculate that this could be the beginning of a large-scale campaign by the Surat RTO to recover outstanding tax revenue, serving as a stern warning to all defaulters.
