Mangaluru, Aug 6: The officers of commissionerate of Central Excise and Service Tax have arrested the proprietor of rent-a-cab service for evading service tax to the tune of Rs 1 crore.

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. Further investigation is under progress.



Comments
Add new comment