Broadband operators evading tax on OFC services: Cong

Bangalore, Aug 1 (UNI) Broadband operators providing service through Optic Fibre Cable (OFC) to transmit data have evaded Sales Tax to the tune of over Rs one lakh crore all over the country, Leader of the Opposition in the Karnataka Legislative Council H K Patil charged here today.

Raising the issue under Rule 330 in the House, Mr Patil alleged over 49 companies had evaded Sales Tax to the tune of over Rs one lakh crore.

''The tax evasion by Broadband service providers in the state alone is about Rs 15,000 crore,'' Mr Patil said.

Elaborating, Mr Patil said over 49 companies, including Bharti Airtel, BSNL, Reliance and Tata Teleservices helped their clients transmit data by using OFC.

The entire process of artificially creating light energy, supplying it through OFC network and collecting charges from the clients for the services amounted to 'sale of goods.' However, the companies engaged in this business never reported their sales turnover to the department concerned and thus evaded paying tax, he claimed.

''The companies engaged in producing light energy and supplying it to their clients through their OFC network for the last several years, have successfully evaded paying Sales Tax by colluding with the officers concerned,'' he charged.

Demanding the state government to take immediate steps to recover the revenue loss from the ''guilty'' companies, Mr Patil also appealed to Prime Minister Manmohan Singh and Union Finance Minister P Chidambaram to look into the issue and put a halt to the large- scale tax evasion by the companies.

Charging many of the state officials working in Commercial Taxes Department with colluding with the companies in defrauding the state exchequer, Mr Patil also asked the state government to order a judicial inquiry into the whole episode.

He also appealed for setting up a tax authority headed by High Court Judge to decide on tax related disputes.

Intervening, Mr V R Sudarshan (Cong) suggested a CBI inquiry into the issue saying the case was a fit for such a probe.

UNI