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125 textile traders directed to pay up service tax dues
May, 22nd 2014

After a massive operation launched by the civic body for fire safety and illegal construction, the textile markets on Ring Road and in Salabatpura area have come under the scanner of service tax department.

The department is learnt to have issued show-cause notices to traders in over 125 textile markets for evading service tax payment on monthly maintenance. Sources said that each textile market has its own association that raises monthly maintenance charges from shop owners. There are more than 50,000 traders in over 125 textile markets.

Official sources said the shop owners have been paying an average of Rs 400 as monthly maintenance to the market associations. Since they are using services, the traders are supposed to pay service tax on the maintenance amount which only a few traders are paying.

The department has asked the traders to deposit the service tax by computing the maintenance payment for the last six years. The total demand raised by the department is around Rs 20 crore.

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