The Anti-evasion Wing of the Service Tax Commissionerate has arrested a businessman for defaulting service tax to the State government.
A senior official said the arrested businessman is K Manjunath, MD of MAA Security Services Pvt Ltd, at Ramamurthynagar.
“The firm is engaged in providing security services which attract a levy of service tax as per the Finance Act 1994. It has been collecting service tax, but has not paid it to the government’s account. This is the first arrest recorded in the Bangalore Service Tax Commissioner ate and the fourth in the country, after the provision was introduced in the last budget,” he added.
The admitted service tax liability by the firm from February 2011 to May 2013 was `2.51 crore. It continued to default for a further period. The Commissioner of Service Tax ordered his arrest, and he was produced before the court of economic offenses.
The arrest was made as per provisions under section 91 of the Finance Act. Section 91 provides for arrest of a person who is involved in defaulting the tax of more than `50 lakh collected and not paid beyond a period of six months.