Tax evasion - another MD arrested

Tax evasion - another MD arrested

Mangalore Today News Network

Mangalore, Aug 23, 2014:  According to a press note, the Commissionerate of Central Excise and Service Tax, Mangalore, arrested owner of an advertisement agency for service tax evasion, the officers have arrested yet another private company MD for service tax evasion.

T he managing director of a private limited company providing cargo handling services was arrested on the charges of service tax evasion. The company had evaded tax of over Rs one crore out of which Rs 70 lakh service tax collected from the customers was retained by them for more than six months without crediting to the exchequer.

During the investigation conducted against a steamer agent, the officers found that the company providing cargo handling services had received huge sums of service tax over the last two years but the verification of database revealed that the service tax collected had not been credited to the government account.

The investigation initiated against the company revealed that the service provider has not even filed the statutory returns with the department and not discharged the tax liability even for one month during the last two years.

The arrested Managing Director was produced before the Principal Civil Judge Senior Division and Chief Judicial Magistrate, Mangalore, who remanded him to judicial custody.  Further investigation is under progress.