Amid dismal tax collections, service tax mop up provides a ray of hope for the Centre and certain sections in this category have come under the scanner of tax authorities.
The Central Board of Excise and Customs (CBEC) have tightened noose on commercial renting of immovable property and telephone companies by receiving information through other sources to detect any possible evasion of service tax.
“Third party information is an ongoing exercise. We have now started it in service tax also. Right now we have included two things, commercial renting of immovable property and telephones,” CBEC chairman P C Jha told PTI in New Delhi on Monday.
Third party information relates to assessing other sources than service tax to see if there is any evasion of tax.
With regard to commercial renting of immovable property and telephone companies, the board has decided to see the income tax returns, property tax paid to municipal authorities and expenditure on inputs claimed as tax benefits, Jha said.
However, service tax collections are the only kitty which has been swelling at buoyant pace despite economic slowdown. “Service tax collections are doing very good. We are above the required rate of growth of 26.2 per cent. The service tax collections growth was 30 per cent up to October,” he added.
Meanwhile, the government earlier this year had introduced third party information for detecting evasion under the excise duty head, concerned over evasion under this head.
