10 MSOs evaded Rs 108 crore in service tax in last three FYs

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The tax department has issued 13 show-cause notices to 10 multi-system operators (MSOs) in the last three financial years for service tax evasion of up to Rs 108.21 crore until September 2016, Minister of State for Finance Santosh Kumar Gangwar said in the Lok Sabha.

The government has provided only details of cases where show-cause notices have been issued and the duty evasion is more than Rs 1 crore. The tax department has issued show-cause notices to WEP Solutions, Intermedia Cable Communication (ICC), IndusInd Media & Communications Ltd (IMCL), Anand Evergreen, Jak Communications, GTPL Kolkata Cable & Broadband Pariseva, Himachal Future Cable & Datacom, Kerala Communicators Cable Ltd, and Advance Multisystem Broadband Communication for allegedly evading service tax.

FY 2015–16 saw the highest service tax evasion to the tune of Rs 70.35 crore involving six MSOs, with IMCL alone accounting for Rs 47.77 crore. Pune-based ICC is the only MSO to have been issued show-cause notices in all three financial years.

Four cases of service tax evasion have been detected by the tax department in FY 2016–17 until September. The total amount involved is Rs 19.62 crore. In FY 2014–15, two companies, namely WEP Solutions and ICC, had allegedly evaded service tax amounting to Rs 4.36 crore and Rs 13.88 crore respectively.

Gangwar said that action was being taken against the said companies according to the provisions of the Finance Act 1994 and the rules made thereunder. He further stated that the department carried out surveys, scrutiny of tax returns, audit, and searches and raids in case of specific information to check evasion.

Read more at: http://www.televisionpost.com/cable/10-msos-evaded-rs-108-crore-in-service-tax-in-last-three-fys/ | TelevisionPost.com