Cable company evaded Rs 2,600-cr service tax: Sidhu
Friday, 07/07/2017
http://www.tribuneindia.com/news/punjab/cable-company-evaded-rs-2-600-cr-service-tax-sidhu/432857.html
Chandigarh : Local Bodies Minister Navjot Singh Sidhu said here today that a major private cable transmission company had evaded service tax to the tune of at least Rs 2,600 crore.
Sidhu said the erring firm, Fastway, would be made to pay the dues, along with a heavy penalty, within a week. “The action has been initiated after the go-ahead from the Chief Minister. I have been asked to work in tandem with the Accountant General’s office,” he added.
Addressing a press conference, Sidhu said, “The company, in connivance with local cable operators, evaded tax to the tune of Rs2,600 crore between 2008 and 2013. Some excise officials were also involved. A show-cause notice for only Rs179-crore tax dues was issued.”
Sidhu was accompanied by SL Goyal, a retired official of the Central Excise Department. The latter said, “In 2014, invoices for at least Rs36 crore were deleted from the system of the accused company. At least 6,500 out of 8,000 cable operators in the state were not paying taxes.”
Goyal further said: “The main service provider gave the task of collecting fees from subscribers to operators. However, it did not inform them about the tax. The Central Excise Tax department office in Ludhiana failed to do its job.”
When contacted, Fastway Transmission CEO Piyush Mahajan said, “Fastway does not owe a penny to the government. We have paid taxes for laying the cables. The dues, if any, are to be paid by the cable operators. The matter is sub judice.”
