Director of manpower supply firm held for service tax evasion

Chennai:

A director of a manpower supply company in Alandur was arrested after the company evaded service tax worth Rs 5 crore by committing irregularities.

G Ravindranath, commissioner of service tax said that the company, which supplies manpower to various manufacturing and service industries, has been evading to pay the service tax collected since 2012 to the exchequer and used it in furtherance of its business.

Not only that, it floated dummy entities as its sub contractors and created fake invoices to fraudulently avail input tax credit.

It is learnt that the company has been given several opportunities to comply after the case was investigated by Survey, Intelligence and research (SIR) wing of the department but it did not comply.

The director was produced before the additional chief metropolitan magistrate, Economic Offences Court, Egmore, and remanded to judicial custody till April 6. “The offence is grave and it carries a jail term up to seven years,” said Ravindranath.

He also warned the tax defaulters, who have been dodging the summons, that his department is initiating legal proceedings in all cases of deliberate and willful disobedience. “It constitues an offence that carries a jail term of six months,’ he said.

For voluntary tax compliance levels as well as for all service tax related queries, the tax payer service centre (TSC) in Anna Nagar can be contacted at 26142850, 26142851 and 26142852.