Question : BORDER TAX EVASION

FINANCE MINISTER (SHRI ARUNJAITLEY)

(a) Yes, Sir.

(b) The details of cases of cross border tax evasion detected by the customs field formations including Directorate of Revenue Intelligence during the last three years are as under:-

	(Rs. in crore) Year	No. of cases detected.	Value of tax evasion. 2011-12	1189	2975.14 2012-13	1487	2207.55 2013-14	1914	4769.25 2014-15(upto Sept, 2014)672	1379.57 
 

(c) The following measures have been adopted to check the menace and to prevent incidence of evasion of excise duty and service tax:-

(i) All field formations of Customs including Directorate of Revenue Intelligence have been sensitized to thwart and prevent any attempt of cross border tax evasion.

(ii) Scrutiny of periodic returns filed by the Central Excise assessees is done regularly.

(iii) Periodic audit of returns and financial records of Central Excise assessees is carried out.

(iv) Focus is given to collection of information and faster investigation of cases of evasion of central excise duties.

(v) The field formations conduct extensive surveys for identification of potential service providers, gather information from various sources, educate the erring service providers about legal implications and keep strict vigil to unearth cases of evasion of service tax. Recent legislative measures such as arrest provisions and lunching of prosecutions, penalty provisions on Directors of the Company, also act as deterrent for the Service Tax evaders.

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