Probe begins into ‘evasion’ of service tax by builders

Sushil Manav

Tribune News Service

Chandigarh, April 29

The Central Excise Department has initiated a probe against builders and developers of Haryana for possible evasion of service tax.

The Directorate General of the Central Excise Intelligence has sought details of such builders and developers from across the state from all Deputy Excise and Taxation Commissioners (DETCs) of Haryana.

In a letter written to the DETCs on April 26, AK Singla, Assistant Director, Directorate General of Central Excise Intelligence, Rohtak, has sought details of the developers for the past five years where cases of non-payment of VAT have come to light.

“It has come to notice of the department that an SIT constituted by the Lokayukta has unearthed Rs 10,600 crore VAT evasion scam in the Excise and Taxation Department by developers, builders and work contractors. It has also been learnt that special assessment teams have been formed at the district-level and the officers have been vested with the power of revision,” says the letter addressed to the DETC, Sirsa.

“It appears that it is not only the case of non-payment of VAT, but there are allegations that the developers, builders and work contractors have charged service tax from the customers/buyers at the time of booking of the flats and have not deposited it with the government exchequer,” the letter adds.

The Central Excise Intelligence Department has asked the DETCs to forward names and addresses of the builders, developers, work contractors of their respective jurisdictions along with other relevant information with supporting documents where cases of non-payment of VAT or other taxes have been noticed in the past five years.