The preventive wing of the Central Excise and Customs on Tuesday raided the embroider dealers in the diamond city for allegedly evading paying service tax on the sale of the hi-tech machines in the textile sector.
Sources said the embroidery dealers have been taking huge amount of installation and maintenance charges from the embroidery unit owners. Though, the dealers are not paying service tax on the charges raised by them.
There are more than 1 lakh embroidery machines installed in the city. The embroidery machines are imported from China, Taiwan and Japan. The machines costs between Rs. 5 lakh to Rs 1 crore and above.
Official sources said the embroidery dealers have been charging between 20 per cent to 40 per cent as maintenance and installation charge to their customers, but they never pay service tax on the amount raised by them. More than dozen such dealers were raided in the city and that more are likely to be raided in the next few days.
A senior officer said, "Surat is the hub of embroidery industry. In the short span of six to seven years, the embroidery industry has grown by leaps and bound. They have costly machines fitted in their units and when it comes to paying service tax to the government, the dealers and even the manufacturers are not very keen.
Source:- timesofindia.indiatimes.com
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