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Excise raids on tour operators

THE CENTRAL Excise Department yesterday carried out raids at nine places against Tour Operators and Rent-A-Cab Operators in Bhopal for evasion of service tax.

india Updated: Mar 01, 2006 01:38 IST

THE CENTRAL Excise Department yesterday carried out raids at nine places against Tour Operators and Rent-A-Cab Operators in Bhopal for evasion of service tax.

A Central Excise release quoting Chief Commissioner, Custom and Central Excise, P N Vittal Das said huge tax evasion of service tax running in lakhs of rupees has been detected. Incriminating documents/records have been seized from the premises of these operators.

These service providers have admitted their services tax liability and have agreed to voluntarily pay service tax. Service Tax is chargeable on Tour Operators and Rent-A-Cab Operators at the rate of 10.2 per cent, the release added. There are 78 Rent-A-Cab and Tour Operators registered with the department at Bhopal.

However, the compliance with the Service Tax provisions by these service providers is far from satisfactory, the release added.

Stringent action against all the Service Tax providers providing taxable service is contemplated, the release said. Chief Commissioner, Customs & Central Excise, Das has also requested

all big organisations, Government agencies, institutions, banks to ensure appropriate Service Tax is discharged by those providing services to them before making payments.

First Published: Mar 01, 2006 01:38 IST