| The West Bengal service tax department collected Rs 1,500 crore as tax in the fiscal 2006-07, against the target of Rs 1,700 crore.
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| It aims to collect Rs 2,095 crore in 2007-08.
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| Construction sector accounted for 80 per cent of the defaults of around Rs 200 crore recorded by the department last year, said K R N Chary, commissioner, service tax, Kolkata.
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| The department would issue show cause notices to all the defaulters soon.
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| Apart from construction services, other sector where the non-compliance was high were security agency services, clearing and forwarding and banking and financial services.
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| In Kolkata and adjoining areas the level of non-compliance was still high compared with other metros, said Chary.
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| Last year, Mumbai contributed Rs 12,500 crore - the highest contribution by any metro--to the Rs 40,000 crore Central service tax kitty.
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| However, a number of new services included in the Finance Act, 2007 like telecommunication, mining, service component in work contract, content service, asset management and design services were expected to increase this year's collection, he added.
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| Also, this year consequent to the increase in threshold limit of exemption for small service providers from Rs 4 lakh to Rs 8 lakh, the limit for obtaining service tax registration had been raised from Rs 3 lakh to Rs 7 lakh.
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| As a result of the exemption, nearly 20 per cent of service providers went out of the tax net.
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| However, the overall effect of the exemption was only marginal-less than 1 per cent. Nearly 10,000 service providers having works contract had been identified in West Bengal and had been sent mailers for registration and payment of service tax, informed service tax department officials. |
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