Service tax of Rs 3 crore recovered from builder
Jamshedpur – An amount of Rs 3 crore has been recovered as service tax from a builder in Jamshedpur. The central excise officials recovered this amount from eight offices of the builder in Bihar and Jharkhand.
The builder was evading the service tax amount from past two years. The officials of the director general central excise (intelligence) conducted raids at various offices of “ Techno Culture Building Center Private Limited ”. It includes offices in Patna and Hajipur in Bihar, Ranchi, Bokaro and Jamshedpur in Jharkhand.
According to an investigating officer, about 50 personnel carried out raids on March, 5 ,2013. It ended up at early hours of next day. This investigation was jointly led by additional and assistant director of Directorate General of Customs and Excise (DGCE) (I).
As per the excise sources, the builder constructed a township named Vastu Vihar in Jamshedpur. At the time of selling the apartment units, builder charged service tax at the rate of 12.36% of the total cost of the flat and collected the amount from the apartment owners of the Vastu Vihar project. It was found that the builder never deposited the collected amount to the government. He added that the builder had opened service tax account at 21 places in the two states.
The respective service tax officials assumed that the builder is depositing the amount at other centres. Thus they never asked him to do so. But after inspection, it came into knowledge that builder was evading tax from July 2010.
The officer highlighted that the evasion amount may cross above Rs 6 crore. He informed that the builder has deposited Rs 2.5 crore to government through cheque and the remaining amount by cash.
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