The Service Tax Commissionerate on Wednesday arrested the Managing Director of a private manpower recruitment agency for evading service tax to the tune of Rs one crore. It has withheld the identity of the arrested individual and his firm.

The accused had collected service tax from his clients in the past year, but failed to hand it over to the Central government. The accused has a history of service tax evasion, a formal press communiqué claims.

Earlier, he was running a similar firm and had collected service tax of Rs 2.2 crore from his clients from 2004 to 2010. The amount was to be paid with interest and penalty. However, he failed to do so. Meanwhile, he started a new firm with his wife as a director and again cheated the exchequer. He has been remanded in judicial custody.