TMI BlogRegarding introduction of reward scheme for informers providing vital inputs in order to check and detect value added tax evasion in Delhi.X X X X Extracts X X X X X X X X Extracts X X X X ..... vade the collection / deposit of VAT in various ways, it is felt necessary to have participation of informers who can provide specific inputs in the area of tax evasion. Thus, the Department has set up a mechanism to reward the informers suitably in the form of cash incentives. The scheme interalia would consist of following guidelines for grant of reward to informers. GUIDELINES/SALIENT FEATURES OF THE SCHEME 1. DEFINITION OF INFORMER A person will be considered to be an informer eligible for reward if he / she furnishes specific information regarding tax evasion through undisclosed sales or movement of goods. However, the reward shall be confined to cases where the specific information leads to search and seizure and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that if the information furnished by him is found to be false he would be liable to prosecution. (section 182 of IPC: false information, with intent to cause public servant to use his lawful power to the injury of another person); (e) That he accepts that the Government is under no obligation to enter into any correspondence regarding the details of additional revenue/demand created and realized as a result of his information; (f) That he accepts that payments of reward is ex-gratia in the absolute discretion of the authority competent to grant rewards and he has no right to dispute the correctness of the decision in any court of law; (g) No reward shall be granted to the informer if the information furnished is vague and of gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or above is created and realized, the informer shall be eligible for reward up to 7.5% of the additional tax demand created and realized or ₹ 10 lac, whichever is less. iii) The reward shall be released as under: a) Advance reward : an advance amount upto a maximum limit of ₹ 25,000 shall be released to the informer upon successful search and seizures where preliminary estimates reveal that the additional tax demand is likely to be ₹ 10 lac or more. b) Interim reward : an amount proportionate to the deposit of additional admitted tax as a result of assessment proceedings and which is not the subject of an objection / appeal, etc. shall be released after expiry of 3 months of such assessment order. c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent and nature of the help rendered by the informer, whether information gives clues to persons involved in tax evasion or their associates etc. 7. BUDGETARY ALLOCATION The Trade Taxes Department shall be given additional budgetary allocation to meet out the expenditure on this account. 8. REWARD EVALUATION COMMITTEE (REC ) All cases for the eligibility for the reward as well as its quantum and release shall be decided by a Reward Evaluation Committee (REC) comprising of the following:- 1. Commissioner (VAT), Govt. of the NCT of Delhi Or his nominee not below rank of Spl. Commissioner Chairman 2. Addl. Commissioner of concerned Zo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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