Tulip Telecom’s chairman and managing director HS Bedi was arrested for allegedly evading service tax of Rs32.16 crore
HS Bedi, chairman and managing director (CMD) of Tulip Telecom Ltd is arrested for allegedly evading service tax of Rs32.16 crore. A case has been registered against Tulip Telecom for non-payment of service tax.
Delhi Service Tax Commissionerate in its investigations found the company engaged in providing internet services among others, was not filing its mandatory returns of the central levy from 2012-13. Commissionerate official arrested lieutenant colonel (retired) Bedi, on charges of non-payment of tax even after collecting it from its consumers.
Patiala House Court has sent Bedi to judicial custody for 14 days. An evasion of service tax of Rs50 lakh and above has been made a cognizable offence after the passage of 2013-14 Finance Bill on 10th May last year.
Finance Minister P Chidambaram had proposed provisions of Criminal Procedure Code (CrPC) to arrest such offenders in 2013-14 budget, in line with customs and central excise laws. Earlier, the officials did not have any power to arrest a person for service tax evasion. The service tax officials are taking strict action against all evaders after a first-of-its-kind amnesty scheme for such defaulters ended in December last year.
Earlier Moneylife wrote; Why no action against Tulip Telecom? Mentioning about debt-ridden Tulip Telecom has failed to pay salaries to employees for nine months and has not deposited tax deducted and provident fund dues.
Tulip Telecom closed Friday 4.96% down at Rs4.02 on BSE, while the 30-share Sensex ended the day flat at 21,753.
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