New Delhi: The government has detected a sharp increase in service tax evasion in the first nine months of this fiscal year, said Lipika Majumdar, member of the Central Board of Excise and Customs, while warning tax evaders of strict action.
The government detected Rs9,800 crore of service tax evasion in the April-December 2012 period, as against around Rs6,000 crore in the year-ago period.
The evasion, which relates to the service provider collecting the tax from the customer but not depositing it with the tax department, was found in sectors such oil and gas, pharmaceuticals and construction.
Roy said the evaders will have to pay tax, interest and penalty and could even see their properties attached.
The government has already recovered around Rs2,000 crore of this detection.
Though service tax has registered a growth of more than 30%, the tax department has been unable to bring all potential tax payers within the net after the introduction of a negative list last year. All services other than those mentioned in the list are taxed.