Finance Ministry warning yields results; February service tax mop up jumps 44%.

The Government's stern warning to service tax evaders appears to have yielded results with the realisation rising to Rs. 10,453 crore in February, 44 per cent more than collections in the previous month.

The revenue department had collected only Rs. 7,255 crore as service tax in January.

"Repeated warnings from the revenue department is showing results. Service tax collection has shown a significant 44 per cent rise in February," a senior finance ministry official told PTI.

Customs duty collection also witnessed a 15 per cent growth at Rs. 15,007 crore in February, as against Rs. 11,406 crore collected in January, the official added.

Excise mop up stood at over Rs. 15,000 crore in February, taking the total indirect tax collection during the month to Rs. 41,000 crore.

In a stern warning to excise, customs and service tax evaders, Revenue Secretary Sumit Bose had in January asked them to either pay the dues or face penal action which could include arrest, prosecution and property attachment.

"We are keeping a very close watch on such elements. They are advised to come forward and pay all taxes and avail of the benefit of reduced penalty," Mr Bose had said.

Those who fail to pay excise duty, should be prepared to face consequences which would include 'provisional attachment of property, arrest and prosecution, suspension of Cenvat credit and 100 per cent penalty and interest', he had added.

The Revenue Secretary has also asked all assesses to ensure timely and correct payment of customs duty, excise duty and service tax for continued trade facilitation.

Overall service tax collection during April-February of financial year 2012-13 was Rs. 1.13 lakh crore, while customs duty mop up was Rs. 1.5 lakh crore, the official added.

Indirect tax collections registered 20 per cent growth at Rs. 4.17 lakh crore in April-February period of this fiscal.

As per the revised estimate, the government aims to collect Rs. 4.69 lakh crore from indirect taxes, comprising customs, excise and service tax.


Source : profit.ndtv.com