I-T dept to recover service tax dues from radio cabs: FM

Some radio taxi operators are avoiding service tax payments, forcing the revenue department to take necessary steps, including coercive measures, to recover the dues, Finance Minister Arun Jaitley said.

The Revenue Department has imposed service tax on all radio taxi service providers from October 1.

"Some of them have been avoiding it and, therefore, whatever steps are provided within the legislations, including coercive steps in that regard, the Department of Revenue has started taking those steps," Jaitley said in Rajya Sabha.

He was replying to a question on collection of service tax from radio taxi service providers.

The Minister said that the RBI is not directly concerned with the service tax matters and it is the job of the revenue department to collect taxes. RBI, the Minister said, was only concerned with the process of payment and authentication of the parties to the transaction.

He said some foreign taxi operators have been seeking time to comply with the payment norms of the RBI, but the central bank has "put its foot down and with effect from December 1, they have been told to completely comply with it."

"A large number of them are already complying with it. Those who do not comply with it will face the logical consequences," Jaitley added.

Notices have been given to all the defaulters in the last few months in order to make sure that the payment gateway does not take the payment outside the country, he added.

"RBI has issued a large number of circulars in this regard and compelled most of the people to fall in line. Those who do not fall in line will face the necessary consequences under the Foreign Exchange Management Act," Jaitley said.

Recently there have been reports of tax dues of certain app-based cab operators, including Uber which is currently in the middle of a controversy over rape of a 27-year-old finance executive allegedly by driver of a taxi booked through it.