5 sectors under scanner for service tax evasion: Report

The Government has budgeted to collect over Rs. 2.09 lakh crore from service tax in the current fiscal year, a growth of 25% over FY15.

The Revenue Department has reportedly decided to focus on five key sectors, including telecom and renting of property, to curb tax evasion and boost service tax collection.

The sectors where tax evasion is believed to be rampant include aviation operations, manpower recruitment, security agencies, works contract and construction, according to reports.

Manual scrutiny of service tax returns of assesses has been initiated from 1st August based on risk parameters.

The detailed manual return scrutiny would be conducted in respect of such assesses whose total tax paid for FY15 is below Rs.50 lakh.

The Government has budgeted to collect over Rs. 2.09 lakh crore from service tax in the current fiscal year, a growth of 25% over FY15.

During April-July FY16, the service tax revenues rose by 20.1% to INR 60,925 crore.