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Rev loss due to service tax evasion
August, 18th 2007
Revenue loss to Government due to service tax evasion has been rising since the last three years with Rs 940.78 crore loss in 2006-07 in as many as 4342 cases.
This was informed by Finance Minister P Chidambaram in Lok Sabha today in a written reply.
According to latest figures available, Service Tax collection till June stood at Rs 10,012 crore (provisional) as against the budget estimate of Rs 50,200 crore for the fiscal.
On the service tax evasion, Chidambaram said the revenue loss in 2005-06 stood at Rs 725.71 crore as against Rs 299.56 crore in 2004-05.
On the action taken by the Government against tax evaders, the Minister said "on completion of investigation, show cause notice is issued for recovery of revenue involved and for imposition of penalty.
He also said that many services were individually specified as taxable services during 2007-08. These include telecommunication service, services outsourced for mining of minerals, oil or gas among others.
In another written reply, Minister of Corporate Affairs Prem Chand Gupta informed the House in a written reply that no company has vanished after raising funds from the public through public issues during the last three years.
A Central Coordination and Monitoring Committee (CMC), co-chaired by Secretary, Ministry of Corporate Affairs and Chairman of SEBI has been set up to look into issues relating to vanishing companies and their promoters, and to monitor the progress of action taken against them.
 
 
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