Relief for Builder in Tax Evasion Case

Published: 09th May 2015 06:02 AM  |   Last Updated: 09th May 2015 06:02 AM   |  A+A-

CHENNAI: A city-based builder was arrested on Thursday by the service tax department on charges of not paying the service tax, despite having collecting the same from his customers. He, however, got reprieve from a court, which granted him interim bail only after he agreed to immediately pay Rs 50 lakh and Rs 1 crore by May 21, a statement from the department said.

While the statement did not name the builder, it said the builder, whose office is located at Teynampet had evaded more that Rs 2 crore of service tax since April 2011. This was despite him collecting the service tax from his customers. “The builder has been constructing commercial complexes and renting his immovable property to various customers and business entities. He had been collecting rental charges along with service tax amounts for providing such services. However, the builder has not been depositing the service tax collected with the service tax department and has been apparently using it in furtherance of his business, which is blatantly illegal,” said the statement from Ravindranath, commissioner of service tax.

As the builder failed to remit the service tax, he was arrested on Thursday by the service tax department.

When he was produced before the Economic Offences Court, the court granted him interim bail till May 21 on the condition of paying Rs 50 lakh of the pending tax immediately. The builder was also asked to pay Rs 1 crore by May 21.

Stay up to date on all the latest Chennai news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp