Question : SEEKING INFORMATION FROM SERVICE TAX PAYERS

(a) whether records of service tax collection are maintained by the Department concerned;

(b) if so, details thereof and if not the reasons therefor;

(c) whether various Divisions of Commissioner of Service Tax in Delhi have issued letters to service-tax payers demanding to submit Total Gross Amount received and Total Service Tax paid, etc. for the last four years;

(d) if so, the reasons for seeking such information when tax payers are filing their returns; and

(e) the steps taken or proposed to be taken to stop such harassment in future??

MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI S. S. PALANIMANICKAM)

(a) Yes Sir, records of service tax collection are maintained by the department.

(b) The records of registered assesses pertaining to registration and returns are maintained in the Automated Central Excise & Service Tax (ACES) database.

(c) Yes, it is a fact that in some cases Service Tax payers are asked by the Service Tax Delhi Commissionerate to submit various information / documents including gross amount received and total service tax paid by them for the last five years.

(d) Since the ST-3 returns filed by the assessees contain limited information therefore, the above details are asked alongwith other details and documents to cross check the figures with those of balance sheet and other financial statement for the purpose of Audit and investigations of tax evasion under the provisions of Service Tax Rules, 1994.

(e) Such information is sought only to safeguard government revenue.