Many private firms and government departments have been slapped with notices for recovery of over Rs 500 crore tax allegedly evaded by them while executing Commonwealth Games-related projects here.

Official sources said recovery notices for Rs 505 crore towards value-added tax (VAT) have been issued by the central government revenue department and trade and taxes authorities of the Delhi government.

The demand was raised after a multi-jurisdiction investigation team working under the Central Vigilance Commission detected Rs 1,014.6 crore tax evasion by the companies and government departments.

Following detection of huge tax evasion, tax departments of both Delhi and central governments have also effected recovery of Rs 94.71 crore from private firms and government bodies involved in the CWG-related works, the sources said.

Sources said show cause notices have been issued to the firms and government departments for payment of Rs 702 crore of VAT on work contracts (TDS), Rs 228.1 crore of service tax and Rs 84.5 crore of workers welfare cess.

“The scrutiny of works or contracts related to the CWG by the CVC revealed instances of non-payment or detection of statutory taxes or cess etc. by some private companies as well as by government departments or organisation. The team is still working and efforts were on to recover the money,” a CVC official said.

Vigilance Commissioner R Srikumar had told PTI in a recent interview that Rs 1,000 crore evasion was detected with the help of a multi-jurisdiction investigation platform, comprising officers from tax and other authorities, formed by CVC to look into the CWG scam.

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