Company director held for tax evasion

By Accommodation Times Bureau

NEW DELHI

The officers of CGST Delhi North Commissionerate have arrested a director of a Company for evasion of Tax, Revenue department on Wednesday said.

The Company had collected over Rs 3 Crores as Service Tax from its clients but had not deposited the same with the Government Exchequer, it said in a statement.

The release stated that under Section 91 of the Finance Act 1994 for violating the provisions of Section 89 of the Finance Act 1994 read with Section 174 of CGST Act, 2017, the director was arrested. The release did not disclose the name of director either company.

He was produced in the and has been sent to Judicial Custody for 15 days. Further investigations are being conducted and the amount of Service Tax evaded is bound to increase, it added.

The government wants to assure taxpayers that compliant taxpayers do not run the risk of facing such punitive action in carrying out their day to day operations.

The power to arrest is to be exercised where there is a deliberate fraud of sizeable magnitude with intent to evade tax.

It is meant to serve as a deterrent to unscrupulous elements in a trade who may try to defraud the system. There are sufficient checks built into the law to ensure that inadvertent or procedural lapses do not attract severe punitive measures, the release said.

 

 





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