MD of management firm held for tax evasion

HYDERABAD: Service tax sleuths arrested a 25-year-old managing director of a city-based management solutions firm for evading over Rs two crore tax on Tuesday.
A team of the service tax investigators including assistant commissioner R Kalyan, under the supervision of Service Tax Commissioner Sunil Jain have arrested Mohammed Abdul Quddus, managing director of Improv Management Solutions Private Limited in Lakdikapul.According to K Balakishan Raju, joint commissioner, service tax, Hyderabad, the company has been providing management and business consultancy services to clients and collecting service tax from them, but not depositing the same in the department account.
“As per section 89 (1) (ii) of the Finance Act, 1994, the offense is punishable, attracting imprisonment up to seven years,” the joint commissioner said. After questioning him at their office, the service tax sleuths arrested Quddus and he was remanded in judicial custody.
It is the second such arrest by the service tax sleuths in the current financial year in Hyderabad. A few weeks ago, they arrested Kunam Raghava Reddy, MD of KRR Infra Projects Pvt Ltd for non-payment of service tax.