Govt detects Rs9,800 cr of service tax evasion in Apr-Dec 2012 period, as against around Rs6,000 cr a year ago
New Delhi: The government has detected a sharp increase in service tax evasion in the first nine months of this fiscal year, said Lipika Majumdar, member of the Central Board of Excise and Customs, while warning tax evaders of strict action.
The government detected Rs9,800 crore of service tax evasion in the April-December 2012 period, as against around Rs6,000 crore in the year-ago period.
The evasion, which relates to the service provider collecting the tax from the customer but not depositing it with the tax department, was found in sectors such oil and gas, pharmaceuticals and construction.
Roy said the evaders will have to pay tax, interest and penalty and could even see their properties attached.
The government has already recovered around Rs2,000 crore of this detection.
Though service tax has registered a growth of more than 30%, the tax department has been unable to bring all potential tax payers within the net after the introduction of a negative list last year. All services other than those mentioned in the list are taxed.
Courtesy:
Remya Nair
First Published: Fri, Feb 01 2013. 07 37 PM IST
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Insurance firms being probed for evasion of service tax
Finance minister P. Chidambaram says recoveries have been made in some cases
New Delhi: Several insurance firms and companies are being probed for suspected evasion of service tax and recoveries have been made in some cases, finance minister P. Chidambaram told Lok Sabha on Friday.
During Question Hour Chidambaram provided a list of insurance companies which are suspected to have evaded service tax or found after investigations to have engaged in financial wrongdoings.
“In cases where investigation has been completed, show cause notices have been issued. Some cases have been adjudicated and demands of service tax confirmed. Appeals against some orders are pending before the customs, excise and service tax appellate tribunal,” Chidambaram said.
He said recoveries have been made in some cases.
“At this stage, it may not be possible to quantify the exact tax liability in each case,” he said.
Seven insurance companies were found evading service tax in 2009-10, nine in 2010-11 and 10 in 2011-12.
In 2012-13 (up to October) eight companies have been found guilty of service tax evasion.
Courtesy:
PTI
First Published: Fri, Dec 07 2012. 07 41 PM IST
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