sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

Notices to pharma firms for service tax evasion
December, 15th 2012

Over the past three years, the Central Board of Excise and Customs has issued 66 show-cause notices to manufacturers of pharmaceutical products who did not pay service taxes worth Rs 207 crore.

Information obtained under the Right to Information Act from the ministry of finance shows that 24 of the total number of cases of service tax evasion by pharmaceutical companies belonged to companies based in Hyderabad and involved evasion to the tune of Rs135 crore. The CBEC, however, refused to provide copies of the show-cause notices and names of the companies stating that the information is not available with them.

According to the information, pharmaceutical companies in New Delhi evaded service tax to the tune of Rs42 crore in the last three years. According to minister of state for chemicals and fertilisers Srikant Kumar Jena, the finance ministry has taken necessary action.

"The audit wing has been directed to thoroughly verify the records of pharmaceutical companies so as to detect evasion, if any, by the companies concerned," said Jena.

As per the Finance Act, 1994, failure to deposit service tax attracts penalty equal to the service tax not paid, but it is not known whether government is able to recover the evaded tax with penalty. The CAG in its report of 2010-11 on taxes paid by pharmaceutical companies cited several instances where companies have not paid or short paid service tax and recommended measures to curb it.

"In our opinion, the root cause of cases of non-payment of service tax was the absence of any mechanism to ascertain whether manufacturers were providing any output services. This facilitated 67 manufacturers of pharmaceutical products to avoid payment of total service tax of Rs182.81 crore," said the report.

In fact, even the annual report of the Director General of Service Tax, who is responsible for administrating service tax, pointed out that only Rs694.06 crore of the Rs4,132.68 crore service tax evaded during 2009-10 was recovered. The show cause notices are pending for a long time, it added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions