In its recent survey of more than 1000 hotels and restaurants in Mumbai, the Service Tax department has found more than 700 hotels evading service tax, reports Aastha Maheshwari of CNBC-TV18.
While more than 50 percent of them have been not registered for the service tax department at all, some of the other hotels have collected a service tax and have not deposited yet. Thus, the Service Tax department is yet to collect an amount of Rs 100-200 crore.
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Although these are just investigations at this moment, these hotels and restaurants could be given an option to apply through the service tax amnesty scheme. The department may also issue show cause notices going forward. The department is planning to raise around Rs 200 crore through these investigations.
In 2013-14 Budget, all air conditioned (AC) restaurants were also included in the service tax net, which led the department to conduct investigations seeking clarification on whether these restaurants had filed service tax. The department also took the help of local bodies to identify these air conditioned restaurants.
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