Service Tax Commissionerate officials arrested Managing Director of M/s Improv Management Solutions Private Ltd here today on charges of evading service tax to the tune of more than Rs 2 crore, it was officially announced.
M/s Improv Management Solutions Private Ltd Managing Director Mohammed Abdul Quddus is the second arrest this financial year by Service Tax Commissionerate officers, Commissioner Sunil Jain said in a release issued here.
Information was received that the company provided management and business consultancy services and collected the service tax amount but did not deposit in with the Service Tax Department, he said in the release.
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As per Section 89(1) (ii) of the Finance Act, 1994, the offence is punishable with imprisonment upto seven years.
Further investigation is on, the release stated.
The department has been pursuing service providers who have been evading payment of service tax, Jain said, adding that earlier, M/s KRR Infra Projects Managing Director K Raghava Reddy was arrested for non-payment of service tax.
