The revenue department today said its Delhi unit hasarrested a director of a company for tax evasion. The Department in a statementin New Delhi today said the arrest was made by officers of CGST Delhi NorthCommissionerate. It said the company had collected more than Rs 3 crore asservice tax from its clients but had not deposited the same with the exchequer.
The arrested director was produced in a local court,which sent the accused to 15 days of judicial custody. Further investigationsare being conducted and the amount of service tax evaded is bound to increase,the release added.
The statement further said the government wants toassure taxpayers that compliant taxpayers do not run the risk of facing suchpunitive action in carrying out their day to day operations.It said the powerto arrest is to be exercised where there is deliberate fraud of sizeablemagnitude with intent to evade tax.