|Chennai||Rs. 24970.00 (-0.44%)|
|Mumbai||Rs. 25970.00 (0%)|
|Delhi||Rs. 25350.00 (-0.59%)|
|Kolkata||Rs. 25440.00 (-0.04%)|
|Kerala||Rs. 24900.00 (-0.8%)|
|Bangalore||Rs. 25200.00 (0%)|
|Hyderabad||Rs. 25080.00 (0.12%)|
The Central Board of Excise & Customs (CBEC) has detected service tax evasion of Rs 9,800 crore in the April-December period this year. It has warned evaders to pay the tax or face action.
“CBEC would appeal to all service providers to comply with the law and pay service tax that is due. Failure to pay service tax will attract appropriate action under law including recovery of tax, interest and penalty. Prosecution and attachment of property are also envisaged in appropriate cases,” CBEC member (service tax) Lipika Majumdar Roy Choudhury said.
She said while some service providers appeared to be unaware of the law, there were some who deliberately evaded service tax. an evasion of Rs 150 crore has been found in the oil and gas sector, Rs 18 crore in construction services, Rs 86 crore in security services, and Rs 28 crore in pharmaceutical.
“In many cases, the service providers collect service tax from their clients but do not deposit it with the government. The Directorate General of Central Excise Intelligence has detected a number of such cases in the last six months,” Choudhury added.
The CBEC had detected about Rs 5,000-6,000 crore of service tax evasion in April-December period last year.
Choudhury said the department has already realised Rs 2,000 crore during the current financial year, bringing down the evasion amount to Rs 7,800 crore, which will also be recovered.
Asked whether the department would be able to meet service tax, she said, "I am hopeful that we will achieve the target." During the first 9 months of the current fiscal, the service tax has witnessed a growth of 34 per cent, she added.