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D. 0. F. No. IV (20/3/2015-Systems Pt.1

29th March, 2019

Dear Collegues,

As you would be aware, DG (Systems) has undertaken an analysis of the Income Tax Returns (ITR)/TDS data for FY 2015-16 received from the CBDT with a view to identify possible leakage of Service Tax revenue and the results were intimated to DGGI and field formations via Antarang on 21.01.2019 [refer DG(System) letter F.No IV(20)/3/2015-Systems Pt.i dated 04.02.2019] for further follow up action. Similar exercise has been completed for the ITR/TDS data for FY 2016-17 and the results are being disseminated.

2. As may be seen, there is a considerable gap between the turnover on account of services as per the ITR/TDS data and the value of services declared in the corresponding Service Tax returns (above threshold of Rs. 1o lakhs). For FY 2015-16 alone, the mismatch is to the tune of of approx. Rs. 12 Lakh Crores. This mismatch has arisen in respect of Permanent Account Numbers (PANs) that are either not at all registered in Service Tax or PAN’s that are so registered but have not filed the Service Tax returns. In some cases there is simply a value mismatch between the turnover declared in the ITR/TDS and the Service Tax returns. No doubt, there can be a number of valid reasons that explain this mismatch, such as exempted or exported services not being declared in the Service Tax returns, missing Service Tax returns, RCM, services outside the scope of service tax etc. However, you would agree that the sheer magnitude of the mismatch is a pointer to the possibility of revenue leakage which cannot be ignored.

3. I request you to quickly get the data sent by the DG (Systems) verified and inform the results through the functionality in the DDM website. Similar action may be taken for the data for FY 2016-17. I look forward to see the results reported by you.

With warm regards

Yours Sincerely
(Pranab Kumar Das)

All Zonal Principal Commissioners and Chief Commissioners.

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  1. mskhan says:

    sir, i donot possess service tax registation during 2015-16 and 2016-17. i have received a notice from service tax department for not paying service tax. will u plz sugest me how to get rid of it.

  2. NEHRU NAGAR says:

    I want to purchase an apartment of super built up area 1133 Sq. fit (carpet area may be around 966 sq. fit) in an under construction project in non-metropolitan city after 01/04/2019. What GST rate will be levied? Will this house come under affordable house category.


    They are following wrong procedure .. i personally experienced that the dealer who has both the service tax and Vat registrations will not declare the turnover related sale goods in service tax returns and he declares only service portion of turnover in service tax returns. The department feels there is concealment and issuing notices.

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