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Proprietor of rent-a-cab service arrested for evading service tax of Rs. 1 Crore.

Proprietor of rent-a-cab service arrested for evading service tax of Rs. 1 Crore.


Mangalore Today News Network

Mangaluru: August 7, 2015: Proprietor of rent-a-cab service has been arrested by officers of commissionerate of Central Excise and Service Tax for evading service tax to the tune of Rs 1 crore. Based on credible intelligence, the officers initiated investigation against the firm providing vehicles on rent to several major companies in the city. The service provider had filed nil tax returns for last 30 months although, he had received consideration to the tune of several crores for service provided.


arrested


M Subramanyam, commissioner of central excise and service tax said invoices raised by them had an endorsement to the effect that service receiver had to pay service tax of 40% of the total value of service. The relevant notification also stipulates that the service provider has to discharge service tax liability on balance 60% of value. Service provider has admitted to contravention that he failed to discharge tax liability thereby knowingly evaded payment of service tax.

The investigation so far prima facie revealed that service provider has committed an offence under Sec 89(1)(a)(i) of the Finance Act, 1994 by knowingly evading payment of service tax. Accordingly, service provider was arrested under sec 91 of the said Act, Subramanyam said, adding since the offence is non-cognizable and bailable, he was released on furnishing bail bond and surety and also subject to conditions including payment of duty evaded in specific time.


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Comments on this Article
Niriksha, Surat Fri, August-7-2015, 1:47
Why such huge amount due? What was the Department doing all this time?
Daisy D’souza, Bangaloe Fri, August-7-2015, 1:43
There are so many who do so?
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