Private firm MD held for not depositing service tax of clients
July, 11th 2016
A city-based industrialist has been arrested for failing to deposit service tax collected from his clients to the government.
Vinay Sirsat, Managing Director of Windsor Management Consultants Pvt Ltd, was arrested on July 5, a Service Tax Department official told PTI today.
He was produced before a local court, which sent him to judicial custody, the official said.
According to rules, if someone collects service tax and doesn't deposit it to the government beyond a period of six months, it becomes a cognisable offence and the person can be arrested if such amount is more than Rs 2 crore.
"During investigation, it came to light that Sirsat had collected service tax of around Rs 18 crore from his clients but deposited merely Rs 41 lakh to the department.
"So far, the department has recovered Rs 3 crore from various bank accounts of the accused and his clients," he said.