Two days after Union Finance Minister P Chidambaram cautioned people against collecting service tax, but not depositing the amount with the government, two persons were arrested today for defaulting in making such payments.
Two directors of Kolkata Cable and Broadband Pariseva,
a multi-system operator (MSO), were arrested on charges that the company had collected service tax to the tune of Rs 5.52 crore, but had not deposited the same with the government exchequer, a statement issued from the office of the Commissioner of Service Tax, said.
This was a cognizable offence and punishable by upto seven years of imprisonment.
Both the persons were produced before the Alipore Court, the statement said.
