Tax evaders may face arrest, lose property

Faced with a difficult revenue situation, the government on Wednesday warned the tax evaders to pay up their dues on time or be prepared to face strict penalty.

Urging the evaders of excise, customs and service tax to make correct payment of taxes, revenue secretary Sumit Bose said with real time information being available "it is not difficult for the tax authorities to reach the doors of those who are evading tax payment".

"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," he said adding that those who fail to pay excise duty will face provisional attachment of property, arrest and prosecution, suspension of Cenvat credit and 100 per cent penalty and interest.

The move comes in the backdrop of moderate growth in the indirect tax collection and the daunting task of meeting the revised fiscal deficit target of 5.3 per cent of the GDP.

Bose said many central excise assesses are removing goods clandestinely, and misusing Cenvat credit while more than half of the service providers who are registered are not filing returns.

A number of service providers who should be paying service tax now have not yet registered themselves, he said adding that all services were made taxable from the July 1, 2012, except those in the negative list and exempted services.

ALSO READ

Subbarao assures various options to tackle liquidity crunch

Delhi most creative state in India, says Creative Index Report

Cargo traffic at 12 major ports down by 2.58% in 2012-13

India outlook is stable, but fiscal deficit a key constraint on ratings