Government warns of tough action against excise, service tax evaders

The move comes in the backdrop of moderate growth in the indirect tax collection and the urgency to contain the fiscal deficit to the targeted 5.3% of the GDP

New Delhi: In a stern warning to evaders of excise, customs and service tax, the Indian government on Wednesday asked them to either pay the dues or face penal action which could include arrest, prosecution and property attachment, reports PTI.


"We are keeping a very close watch on such elements. They are advised to come forward and pay all taxes and avail of the benefit of reduced penalty," Revenue Secretary Sumit Bose told reporters.


Those who fail to pay excise duty, he warned, should be prepared to face consequences which would include "provisional attachment of property, arrest and prosecution, suspension of Cenvat credit and 100% penalty and interest".


The move comes in the backdrop of moderate growth in the indirect tax collection and the urgency to contain the fiscal deficit to the targeted 5.3% of the GDP.


The Indian Revenue Secretary said government would urge all assesses to ensure they make timely and correct payment of customs duty, excise duty and service tax for continued trade facilitation.


"It has been observed that a number of central excise assesses continue removing goods clandestinely, sometime even without registration, misusing Cenvat credit or simply not paying central excise duties which are due to the government in disregard of the law," he said.


With regard to Service tax, Bose said, it is also noticed that more than half of the service providers who are registered are not filing returns while a number of service providers who should be paying service tax now have not yet registered themselves.


"The Department has also gathered information that a number of service providers are collecting service tax from receivers of service but not depositing the tax with the government," Bose said.


"Let we warn them all such service providers will not only be liable to pay the service tax along with interest and penalty which may be equal to the service tax evaded, but they can also be prosecuted for these offences. Money due to them from a third party can be appropriated by the government," he added.


All services are taxable from 1 July 2012, except those in the negative list and exempted services.


On the customs side, Bose said, "We have seen that some importers and exporters are indulging in under-invoicing on import or over-invoicing in exports and mis-declaration of goods and are misusing exemptions and various incentive schemes, to evade customs duty".


When 70% of the consignments are being cleared by customs on self assessment basis, without any assessment and examination by Department, it is incumbent upon the importers or exporters to discharge their correct duty liability, he said.


Highlighting some unscrupulous elements are already on the radar of DRI (Directorate of Revenue Intelligence) and intelligence wings of customs houses, he said, such importers and exporters should be ready to face legal consequences including arrest and prosecution, besides payment of duty with interest, fine and penalty upto 100% of duty evaded.


"The only window for them is to come forward and deposit the duty now and avail of the benefit of reduced penalty," he said.


Indirect tax collection grew at a moderate rate of 16.8% to Rs 2.92 lakh crore in the April-November period as against the annual growth target of 27%.


The government in the current fiscal had proposed to collect from customs, excise and services tax Rs5.05 lakh crore, an increase of 27% over realisation in the previous fiscal.


India realises Rs181 crore in tax based on info provided by France

France has provided details of Indians having bank accounts in one of the banks of Switzerland using which the tax authorities realised Rs181 crore in tax

New Delhi: The Indian government on Thursday said tax authorities have realised Rs181 crore on undisclosed income of Rs565 crore detected so far on the basis of information provided by the French government relating to certain bank accounts in a Swiss bank, reports PTI.


"On the request of the government and persistent follow up in June 2011, France has provided details of Indians having bank accounts in one of the banks of Switzerland, under the provisions of Double Taxation Avoidance Convention (DTAC) between India and France," Minister of State for Finance SS Palanimanickam said in a written reply in the Rajya Sabha.


Investigation conducted led to detection of undisclosed income of about Rs565 crore and realisation of taxes of about Rs181 crore, he said.


Palanimanickam also added that the investigation in the cases where information was received from France are under progress including with the foreign tax authorities to obtain more information.


Based on the information received from the Government of France relating to certain bank accounts reportedly held by certain individuals or non-individuals in a foreign bank, he said, investigations have been undertaken by different jurisdictional authorities under the Income Tax Act 1961.


In a separate response, Palanimanickam said government receives information from various countries regarding assets including bank accounts held abroad by Indians under the respective Double Taxation Avoidance Agreements (DTAAs) or Tax Information Exchange Agreements.


Based on information received since March 2009 under DTAAs regarding foreign bank accounts maintained by certain individuals or non-individuals, undisclosed income of about Rs600 crore has been detected and taxes of about Rs 200 crore have already been realised, he said.




5 years ago

Even in Rajya Sabha ,GOI is not telling Rajya Sabha Members full details of Indians having Rs.600 Crores in Banks in France.India has Strong Acts like Money Laundering Act,FEMA,& Black Money control. Rs. 600 Crores should have gone to France in Violation of Acts. GOI do not take any action to find out the Illegal Activity involved in it. This also Proves Arvind Kejriwal's Allegation as Correct.

Government asks taxpayers to disclose true income or face action

I-T department said it has information that 33.83 lakh people made cash deposits of Rs10 lakh or more in savings bank account while during assessment year 2012-13, only 14.62 lakh assesses, including professionals and companies, have declared taxable income of over Rs10 lakh

New Delhi: In a stern warning to tax evaders, the Indian government on Monday warned them to either disclose their correct income and pay advance tax by 15th December or be prepared to face action, reports PTI.
"Government would urge all assessees to disclose their true income. There is no advantage in suppressing the true income or avoiding paying income tax that is due", Indian Revenue Secretary Sumit Bose told reporters.
Regretting that there was "gross-understatement" in filing of advance tax by assessees, he said, "sooner than later, the information available with the income tax department will lead the department to the doors of such persons." 
Bose said that during assessment year 2012-13, only 14.62 lakh assessees including professionals and companies have declared their taxable income of over Rs10 lakh, adding "any fair minded person will agree that this is a gross under- statement." 
The direct tax collection during April-October worked out to be Rs3.02 lakh crore, showing an increase of 6.59% as against the annual growth target of 15%. The government proposes to collect Rs5.70 lakh crore from direct taxes, which include income tax, corporate tax and wealth tax, this fiscal. 
Bose said the I-T department has information that 33.83 lakh persons made cash deposits totalling Rs10 lakh or more in the savings bank account.
Also 16 lakh persons made payments of Rs2 lakh or more against their credit cards and over 11.91 lakh people decided to purchase or sell house property worth Rs30 lakh or more.
15th December is the last date for paying the third instalment of advance tax for corporates and the second instalment for all other assesses.
"For assesses who have not yet paid the correct advance tax, there is an opportunity to rectify the mistake and pay the advance tax by 15th December," Bose said.
Soon after assuming charge of the Ministry, Finance Minister P Chidambaram had made a statement regarding taxation and tax administration.
He had emphasised on clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary that will provide great assurance to investors.
Asking assessees to pay advances taxes by due date, Chidambaram had said: "paying taxes is a mark of civilisation.
If I pay more taxes, I should be more happy and more proud. I am making more money and I am paying more taxes".



Pradeep R Hattangadi

5 years ago

First start with the Politicians.


5 years ago

How much a favour cost in the IT deptt.? If the deptt are in possession of the info., let them go ahead instead of giving threats. In any case, action will not be taken against those powerful people who have been stashing their funds abroad and continue unabated to do so. If the deptt were serious, AND FREE TO ACT TOO, action would have long bee taken and not one single case would have been time barred.

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