Traders in Mancherial go the ‘scrap’ way to evade taxes

Mancherial: Discarded batteries and iron waste may be seen as scrap, but, believe it or not, it is a boon for a section of battery traders in Mancherial town. These traders sell them in neighbouring districts to evade some taxes and make a killing, and in the process, causing huge revenue losses to the government. […]

Mancherial: Discarded batteries and iron waste may be seen as scrap, but, believe it or not, it is a boon for a section of battery traders in Mancherial town. These traders sell them in neighbouring districts to evade some taxes and make a killing, and in the process, causing huge revenue losses to the government.

According to sources in Police Department, the business turnover of discarded batteries in Mancherial district is between Rs 30 lakh and Rs 35 lakh per month. These traders sell the expired batteries in Karimnagar, Hyderabad and neighbouring Maharashtra, transporting them at night to avoid enforcement agencies.

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“The traders collect discarded batteries from customers at cheap prices and sell them to agents instead of sending the product back to the manufacturers. They should pay way bills and commercial taxes if the value is more than Rs 50,000. But, they evade both taxes,” a police official told Telangana Today.

Ramagundam Commissionerate’s task force seized 3.5 tonnes of discarded batteries being shipped from Mancherial district to Karimnagar on October 10. The value of the batteries was Rs 4 lakh. Commercial Tax Department officials imposed taxes and fine of Rs 1.30 lakh against Rachana, Mugda and Bhagavan Batteries of Mancherial for illegally selling the batteries.

The traders also engage some unauthorised persons to separate lead from the discarded batteries that causes environmental pollution. The unused batteries should be returned to the manufacturer who is responsible for scientifically disposing of the products.

Meanwhile, some dealers also evade taxes while shipping iron and other metal scrap to Maharashtra and other States. During a recent joint operation by sleuths of the task force and officials of the Commercial Tax Department, 50 tonnes of scrap worth Rs 20 lakh was seized while it was being transported by two trucks to Maharashtra on October 14.

A fine of Rs 7.31 lakh was imposed against the dealers SK Hyder, Chintala Upender, SK Ibraham and SK Farooq, all from Luxettipet.

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