Concerned over the lower than expected growth in service tax collection, the revenue department of India has notified that, it will mainly focus on five key sectors which include aviation operations, manpower recruitment and security agencies, works contract and construction which are prone to tax evasion.
With an aim to improve service tax collection and to help in service tax audit and scrutiny of returns, the service tax department has prepared sector specific profile of the five sectors which are prone to evasion. Under this, senior officials of the department will be assigned the task of profiling of each of the five sectors. The Sector specific profiling would be in addition to the manual scrutiny of service tax returns of assesses based on risk parameters which has been initiated from August 1. The detailed manual return scrutiny would be conducted in respect of such assesses whose total tax paid for 2014-15 is below Rs 50 lakh.
For the current fiscal, government has budgeted to collect around Rs 2.09 lakh crore from service tax, a growth of 25 per cent against the last financial year. Besides, during April-July of current financial year the service tax revenues surged by 20.1 per cent to Rs 60,925 crore. The rate of growth was, however, less that 75.4 per cent in case of excise and 21 per cent in case of customs.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: