Chennai: The executive director of a luxury hotel in Nungambakkam was arrested by the service tax department for allegedly evading RS 1.39 crore tax since 2008.
According to sources, Karthik P. Sivaram, executive director of Aruna Hotels, on Sterling road, was arrested on Saturday by the sleuths from the service tax commissionerate for non-payment of service tax to the government.
The hotel which does the business of providing rental, short-term accommodation, bar and restaurant services, has allegedly evaded service tax of Rs 66.32 lakh, which was collected from the clients from 2008-09 to December 2012.
Further, the service tax liability of the hotel for the period 2013-14 was found to be Rs 73.58 lakh making the total liability to Rs 1.39 crore. The service tax collected from the customers was not deposited with the government, the department sources said.
"He was arrested on Saturday but later released on interim bail after he gave an undertaking to pay 75 per cent of the service tax liability on Monday," the sources added.
The government had earlier stated that service tax defaulters will be dealt with severely as per provisions of the finance Act, which includes arrest and prosecution.
"The department is determined to cover all such evaders in the coming days," said R. Periasami, commissioner of service tax, Chennai, in a press release.
