Service Tax evasion of over Rs one crore detected

Ahmedabad, Mar 29 (UNI) Sleuths of Service Tax Commissionerate have detected tax evasion of over Rs one crore here.

Following a tip-off, officials of the Service Tax Department yesterday raided the premises of a construction company presently engaged in activities of laying long distance pipeline for water supply and drainage system and another builder - both at Ashram Road area of the city and a rent-a-cab operator situated at C G Road, sources said.

Information gathered by the tax sleuths revealed that the construction company was not registered with their department and was not paying any tax. However, according to law, laying the pipelines is taxable with effect from June 16, 2005, sources said.

During the search, it was revealed that the company had received a gross amount of Rs 31.28 crore towards such activities which included the value of materials. After allowing deduction towards value of materials used, evasion of service tax tenatatively amounted to over Rs one crore.

In the second case, a search was conducted at the business premises of a builder who was not paying any service tax.

In the third case, a search was carried out at the office of a rent-a-cab operator who was not paying proper service tax. The service provider deposited a service tax of Rs 20,000 on the spot.

The sleuths have seized incriminating documents regarding their business transactions for further investigation, sources added.

UNI