SURAT: The customs, central excise and service tax department recovered tax dues to the tune of Rs 1.5 crore from a real estate developer in Amroli area of the city on Friday.
Service tax department raided the offices of the city-based company having interests in real estate and hospitality on Thursday. The company, which had service tax dues to the tune of about Rs 1.5 crore, was also providing renting services, official sources said. The group has been evading service tax for the last couple of years. It was found that its construction arm owed huge tax dues, they added.
The raids were conducted at multiple offices of the group’s companies for two days by teams of more than 15 officials from the department. The searches resulted in recovery of several records, documents as well as computers and laptops that pertained to financial matters and transactions.
Many of the deals mainly related to renting of land, house or other commercial properties evade tax net as the money transactions are not recorded in government documents and taken directly and illegally, they said.
An Union finance ministry report has said that land and real estate are possibly the most important class of assets used for investment of black money.
