DG, Service Tax on names dropping spree
Mr. KP Singh, DGST, is fond of dropping names of big corporates who owe him Service Tax. For an unduly long period the DG has been silent which he broke in Jaipur recently. His list of evaders include Airtel, Samsung, Sterlite, DCM Sriram, Reliance, Indian Airlines, ONGC and the Rajasthan Cricket Association. He further enlightened newsmen that leading corporates as well as state government and Central PSUs have evaded paying service tax and the department is communicating with them for recovery of the same. He adds that Sterlite Corporation owed about Rs 1.3 crore, Samcor Ltd, a Samsung Corporation subsidiary, has evaded service tax to the tune of Rs 35 lakh, Kota based Mangalam Cement Ltd has been booked for tax evasion of Rs 36.66 lakh and DCM Sriram is involved in a case for a claim of Rs 20.60 lakh. Indian Airlines owed him over Rs 100 crore against service tax and Hindustan Aeronautics Limited owes Rs 60 crore. He did not want to humiliate Reliance, Airtel and other corporates as they are sources of income for the government. Do you have laws to collect taxes or do you go to the press? What is the impression that the DG is trying to convey? When ONGC, RBI, Reliance, Indian Airlines and other such big names do not pay taxes why should small time barbers and photographers pay tax? Is that the message? Or is that the big ones will any way get away but you small fry cannot?