The Hindu : Business : `Pay service tax and sleep well'

Online edition of India's National Newspaper
Thursday, Feb 10, 2005

Business

Business

`Pay service tax and sleep well'

By Our Special Correspondent

CHENNAI, FEB. 9. "Pay service tax and sleep well" will be the slogan of the Central Excise Department which will launch searches if credible evidence of service tax evasion was found by the service providers, said K. P. Singh, Director General of Service Tax, here today.

Addressing a news conference after holding a meeting of the top officials of the Chennai Zone Central Excise Commissionerate, Mr. Singh said the Department would no longer be a silent spectator against those service providers who do not voluntarily comply with the service tax.

Pointing out that manpower would be doubled and vehicles made available for facilitating the searches, Mr. Singh said if the Department had credible evidence, the searches would be carried out in full measure and penal action initiated.

"The Department would levy as high as 200 per cent penalty besides the interest calculated and we mean business," the Director General said urging the service providers who have not registered under the Central Excise bracket to do so and comply with the service tax provisions.

The Central Government agency, he said, had written to the Chief Secretaries and the Directors General of Police and the top brass of the public sector undertakings, seeking their cooperation for garnering the service tax due to the Government.

Stating that the Central Government had fixed a huge target of Rs. 14,150 crores, which was 73 per cent higher than the previous fiscal year, Mr. Singh noted that till January, the country-wide offices had collected service tax to the tune of Rs. 9,759 crores. Referring to the Chennai Zone's target which has been fixed at Rs.1,395 crores, till January, the zone had achieved Rs. 767 crores.

Listing out the Department's trade-friendly measures, Mr. Singh appealed to the service providers to make best use of them besides the Internet-driven facility for registering. "You need not come in search of us. We will reach out to you at your workspot," the Director General said. He also enumerated the service tax friendly measures initiated by the six Commissionerates located in Chennai, Bangalore, Mumbai, Ahmedabad, Kolkata and New Delhi. J. Sridharan, Chief Commissioner of Central Excise, Chennai, and S. Subramanian, Commissioner of Central Excise-IV, said there were 35,464 service tax assessees in the Chennai Zone. Dr. Sridharan made a specific appeal to the service providers to pay up their service tax before March 31.

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