Two held for service tax default

Two held for service tax default

Two persons were arrested for non-payment of Rs 6 crore service tax collected by them from customers by the Anti-Evasion Wing of Service Tax commissionerate here.

Pramod Mishra, Managing Director, of Axis Fortifications Pvt Ltd, Ramamurthy Nagar Main Road, Kasturinagar and Sharad Dhawan, Director of Spectrum Consultants India Pct Ltd, HAL II Stage, Indiranagar were produced before the Special Court for Economic Offences, according to an official release.

Both had applied for amnesty under the Service Tax Voluntary Compliance Encouragement Scheme 2013 introduced by the Finance Minister in the Union Budget 2013 but had failed to pay the first installment of 50 per cent of total service tax dues by the prescribed date .i.e December 31, 2013.

 Both continued to default in paying the service tax for subsequent period also. Axis  Fortification Pvt Ltd had failed to remit the service tax of Rs 3.47 crore collected from 2009 till date, while Spectrum Consultants had collected service tax from 2011 till date of Rs 2.41 crore but failed to deposit it with the government exchequer. 

The Finance Ministry has given  directive to service tax authorities to take stringent action against defaulters of service tax , the release added.