Rs 100 cr service tax evasion by wind power provider
September, 23rd 2013
An alleged service tax evasion of at least Rs 100 crore by a Mumbai-based wind power provider and its allied companies has been detected by Excise intelligence officials.
Acting on a tip off, officials of Directorate General of Central Excise Intelligence (headquarters) here, recently conducted searches at the premises of the provider in Mumbai and its other offices across the country.
The officials have found that the company, engaged in manufacture of wind turbine generators and providing services of its installation and maintenance, was allegedly evading service tax by mis-declaring the value of work being undertaken by it, sources said.
During the searches, it was found that it had collected full amount of service tax from its clients between April, 2012, and May, 2013, by providing services in connection with wind turbine generators sold to them, they said.
However, the firm had allegedly re-worked the value of taxable services and discharged service tax on 30 per cent of value only.
The amount of remaining 70 per cent of service tax collected by them was allegedly shown in other heads to dodge the authorities and evade the Centre's levy, the sources said.
An email query sent to the company by PTI did not elicit any response. Phone calls made to the firm's corporate office in Mumbai was answered by Kakade, said to be working with its marketing division, who declined to give any comment on the matter.