Service Tax, Mumbai-I commissionerate arrested Shri Rohit Talwalkar, Director of M/s. Talwalkars Fitness Solution Pvt. Ltd. on 15th January. The Company is engaged in providing health and fitness services.
They have gym and fitness centre at 12 places like Mumbai, Nashik, Panvel, Baroda, Ahmedabad, Surat etc. They have been collecting Service Tax as part of their monthly, quarterly or six monthly charges. All the payments are received by them in advance only. The amount charged by them is inclusive of taxes including Service Tax.
They have collected Service Tax from September, 2008 onwards, but have not paid to the Department. Total amount of Service Tax not paid from September, 2008 to December, 2012 is Rs. 2.85 crores.
There would be further liability of more than Rs. 50 Lakhs from January, 2013 also. As they had not paid the Service Tax, they have filed declaration under VCES Scheme introduced by the Government. As per the Scheme, 50% of the Service Tax dues was required to be paid prior to 31.12.2013.
However, they could not pay the said amount.
When the department came to know about this default which was going on for more than 5 years, "we immediately took strict action and arrested Shri Rohit Talwalkar, one of the Directors of the Company on 15th January," said press note issued by the service tax dept.
He was produced before the Esplanade Court today remanded to judicial custody till 29th January, 2014. Government had announced a VCES Scheme to pay all dues, but in spite of the said scheme, the tax payers are not coming clean, therefore now, serious action will be taken, said press note.
They have gym and fitness centre at 12 places like Mumbai, Nashik, Panvel, Baroda, Ahmedabad, Surat etc. They have been collecting Service Tax as part of their monthly, quarterly or six monthly charges. All the payments are received by them in advance only. The amount charged by them is inclusive of taxes including Service Tax.
They have collected Service Tax from September, 2008 onwards, but have not paid to the Department. Total amount of Service Tax not paid from September, 2008 to December, 2012 is Rs. 2.85 crores.
There would be further liability of more than Rs. 50 Lakhs from January, 2013 also. As they had not paid the Service Tax, they have filed declaration under VCES Scheme introduced by the Government. As per the Scheme, 50% of the Service Tax dues was required to be paid prior to 31.12.2013.
However, they could not pay the said amount.
When the department came to know about this default which was going on for more than 5 years, "we immediately took strict action and arrested Shri Rohit Talwalkar, one of the Directors of the Company on 15th January," said press note issued by the service tax dept.
He was produced before the Esplanade Court today remanded to judicial custody till 29th January, 2014. Government had announced a VCES Scheme to pay all dues, but in spite of the said scheme, the tax payers are not coming clean, therefore now, serious action will be taken, said press note.