India’s excise tax evasion amounting to Rs.33 billion and Rs 102 billion in excise and service tax respectively came to light when authorities conducted raids on Skylark Group of companies.
The Directorate General of Central Excise Intelligence(DGCEI) officers have detected evasion of Central Excise duties and Service Tax amounting to Rs.9.7 million and Rs 4.6 billion respectively in 2011-12 fiscal year. Other dues amounting to Rs.2.1 million and Rs 3.8 million respectively have also been recovered.
‘Skylark’ Group of Companies, which is engaged in providing services of Security Agency and Man Power Supply service all over India. The estimated Service Tax evasion by these companies is about Rs.100 million.
The mastermind behind the evasion is Captain T.C. Yadav (Retd.), who used to float a number of companies engaged in providing security service and man power supply service under multiple identities. Although the group had been collecting Service Tax from its customers, it paid a small amount to the government towards discharge of its Service Tax liability, while illegally retaining with itself a significant amount collected as Service Tax from its customers.
Skylark Group is also running an education institute namely, Skylark School of Business and Technology (SSBT) and the Service Tax liability of these companies under the taxable service category of ‘Commercial Coaching & Training Service’ is under examination. Further investigations in this case are under progress, said the government in a statement.