Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: cpt :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT Audit :: TDS :: empanelment
 
 
« Service Tax »
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down
 GST to have negative impact on oil and gas industry
 GST and You: How are free samples treated under the new tax regime?

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 2017 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