'Tax collection target at Rs 2095 cr in 2007-08'

Kolkata, Jun 23: Service tax collection in the city has grown at the rate of 40 per cent, occupying fifth position after Mumbai, Delhi, Chennai and Ahmedabad in 2006-07.

Speaking to UNI on the sidelines of a seminar organised by Calcutta Chamber of Commerce, Service Tax Commissioner K R N Chary said, ''We have set a collection target of Rs 2095 crore from Kolkata, which will be 4 per cent of the total collection target of around Rs 50,000 crore.'' He said the total collection in the last fiscal was Rs 1495 crore, around Rs 200 crore short from the target.

''We will send showcause notice to the defaulters, which is mainly from the construction sector,'' Mr Chary added.

Asked whether the department will lose service tax following the exemption given in the last budget, that assesses from the small scale, would be able to avail exemption from payment of service tax upto Rs 8 lakh, he said the department would not lose tax due to this exemption.

UNI