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Excise dept to intensify crack down on tax defaulters

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Our Regional Bureau Ahmedabad
Last Updated : Feb 06 2013 | 8:20 AM IST
To check the service tax evasion the Central Excise Department has decided intensify the drive against the willful defaulters.
 
Spelling out the strategy for the current fiscal year, S C Mathur, chief commissioner of central excise, Gujarat, said that names of service providers will be collected from big corporates, government departments and PSUs and action will be taken against defaulters.
 
The department had achieved more than 100 per cent growth in service tax collection in Gujarat in 2004-05.
 
Meanwhile, 60 per cent of the service providers will go out of the service tax net fro this year. All the service providers, whose aggregate value does not exceed Rs 4 lakh in a financial year, will be exempt from service tax.
 
The Gujarat zone of the service tax commissionerate is likely to lose about Rs 10 crore due to the exemption.
 
"The service tax collection has been impressive in 2004-05. The department collected Rs 595.98 crore as service tax, which is Rs 312 crore higher than that of the previous year," Mathur said.
 
He added that the central excise, customs and service tax revenue put together, Gujarat collected 16 per cent of the country's total indirect tax.
 
Mathur said that the excise revenue realisation for the zone in the 2004-05 fiscal stood at Rs 7,563.59 crore, which is Rs 1941.77 crore higher than that of last year. The customs revenue in the zone stood at Rs 1,745.75 crore.
 
Mathur said that the preventive wings of the zone booked 271 cases against evading units last year. A duty of Rs 334.40 crore and a spot recovery of Rs 7.45 crore were imposed. The internal audit branches raised 1959 audit paras involving a revenue of Rs 64 crore and a spot recovery of Rs 11.99 was effected.
 
A service tax commissionerate has been created in Ahmedabad with effect from September 15, 2004 and prior to that, the central excise department looked after service tax.
 
"All those service providers who have an aggregate value of less than Rs 4 lakh will have to surrender their registration certificates, or they will face penal action," said Mathur.

 
 

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First Published: Apr 14 2005 | 12:00 AM IST

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