The service tax department has turned its focus on tax evaders, who have yet to deposit tax amount worth Rs 35 crore. 

Sources said the 550 tax payers including those falling under multi service group (MSG) such as security agencies, business auxiliary services, couriers, coaching classes, goods transporters and the like have not paid tax for up to three years.

Senior officers said the service tax inspectors have been asked to fan out in the city and start the tax recovery drive. They have been asked to prepare a detailed list of tax evaders in order to complete the recovery target by the end of this year.

"All the 550 taxpayers have been served notices in the last few days. They have been strictly asked to deposit their outstanding tax amount with the department, or else face action," said a senior service tax officer.