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Service tax evasion rises by 216% in the first quarter of 2011-12

05 Jul 2011 Evaluate

The first quarter of present financial year 2011-12 has registered an increase of 216% in the service tax evasion and 98% rise in the central excise. The director general of central excise intelligence (DGCEI), revenue intelligence arm of the Central Board of Excise and Customs (CBEC), has registered 83 cases of service tax evasion worth Rs 1651.3 crore as against Rs 522.2 crore in the same period of previous financial year.

During the last financial year, DGCEI had registered 117 cases of service tax evasion amounting to Rs 552.2 crore, the amount of evasion are expected to increase further as the investigation in some of the service tax evasion are in progress. Some of the important findings of service tax evasion were in renting of immovable property service, business support service, telecom service, management, maintenance or repair and commercial or industrial construction services.

During the investigation, the charges recovered by the investigating agency increased by 164% to Rs 205 crore, towards unpaid central excise and service tax during the present quarter as against a recovery of Rs 77.6 crore in the same period in the last financial year.

Service sector accounts for the 60% of the India’s Gross Domestic Product and has around 20% share in the Indirect tax collection.

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