The CFO of a Salt Lake-based private company in Kolkata was arrested by the service tax department on Wednesday. The company allegedly evaded duty worth approximately Rs 17 crore.
“The CFO was arrested for duty evasion. He was produced in court and has been remanded to custody till January 25. As per information provided, investigation by the officers had unearthed a service tax duty evasion of around Rs 17 crore against the company. The company provides various software and Internet services to domestic and international clients. It collected the aforesaid amount, but did not deposit the service tax to the government. The amount of 17 crore includes the accepted liability of Rs 3.46 crore declared for the period of October 2010 to December 2012, of which only the first installment of Rs 1.29 crore was paid, after which the payment was stopped. After December 2012, the company allegedly defaulted in discharge of its service tax liability of around 15 crore upto March 2016. According to sources in the department, efforts are being made to trace other directors of the company stationed outside Bengal.
Watch What Else Is Making News
The power to arrest under service tax laws is proposed to be restricted only to situations where the tax payer has collected the tax but not deposited it with the exchequer, and the amount of tax collected but not paid is more than Rs 2 crore.