Tulip Telecom down after CMD's arrest for alleged tax evasion

Shares of Tulip Telecom today plunged nearly 5 per cent following arrest of its CMD for allegedly evading service tax.
The company's stock opened the day on a weak note and slumped 4.96 per cent to Rs 4.02 -- its lowest trading permissible limit for the day on the BSE.
On the NSE, the stock lost 4.76 per cent to touch its lower circuit limit of Rs 4.
Service Tax Commissionerate officials arrested Lt Col (Retd) H S Bedi, CMD of Tulip Telecom Limited on Tuesday on charges of non-payment of tax even after collecting it from its consumers, the sources had said.

The CMD of the telecom firm was arrested for allegedly evading service tax of about Rs 32 crore.
A case has been registered against Tulip Telecom Ltd for non-payment of service tax, official sources had said.
Investigations by Delhi Service Tax Commissionerate found that the firm, which is engaged in providing internet services among others, was not filing its mandatory returns of the central levy from 2012-13, they said.
The estimated alleged service tax evasion by the company is Rs 32.16 crore, they said.