Rs 2.40 crore service tax evasion detected | india | Hindustan Times
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Rs 2.40 crore service tax evasion detected

CUSTOM AND Central Excise Department has detected service tax evasion of Rs 2.40 crore in the last two months in the Bhopal zone comprising Madhya Pradesh and Chhattisgarh. Of this amount, Rs 1.30 crore was recovered on the spot. A Service Tax Task Force (STTF) was created at Bhopal in November 2005 to check evasion of Service Tax.

india Updated: Feb 03, 2006 16:01 IST

CUSTOM AND Central Excise Department has detected service tax evasion of Rs 2.40 crore in the last two months in the Bhopal zone comprising Madhya Pradesh and Chhattisgarh. Of this amount, Rs 1.30 crore was recovered on the spot. A Service Tax Task Force (STTF) was created at Bhopal in November 2005 to check evasion of Service Tax.

Chief Commissioner P N Vittal Dass said in the two months STTF conducted 17 raids on service tax evaders in respect of cargo-handling agencies, advertising agencies, commercial coaching concerns, air travel agent and goods transport agency services. It was noticed that most of the cargo handlers rendering services of unloading-loading, stacking, transportation of fertiliser to various fertilisers companies were neither registered with the department nor paying service tax.

Such activities are chargeable to service tax under the category of ‘cargo handling services’ with effect from August 16, 2002. Information in respect of such cargo handlers has been called for from various companies and necessary action would be initiated thereafter.

Summons has been issued to all such contractors, he added. Inquiries made at various power stations has revealed they had not paid appropriate service tax on services pertaining to transport of goods by road for which the power station was liable to pay service tax.

It was also found that most services providers of power stations rendering maintenance and repair services and cargo headlining services had not discharged their Service Tax liabilities. Contractors have been summoned and the matter has been taken up with MPSEB authorities to ensure that such service providers discharge their Service Tax liability.

Similarly, contractors engaged by public sector oil companies for construction of petrol pumps have not paid appropriate Service Tax. Such service provided by contractors is chargeable to Service Tax under the category ‘Commercial or Industrial construction services’ with effect from September 10, 2004. Summons have been issued to all such contractors, he added.

It was also found that many units including large-scale public sector undertakings had engaged services of labour contractors for providing manpower. Such manpower should be provided by registered societies. However, many of labour contractors have neither got registered with the department nor paid any Service Tax.