Service Tax authorities have issued summons to IL&FS for alleged tax evasion worth Rs 1.64 crore by one of its contractors/agents at its upcoming mega power project in southern Tamil Nadu.
This development comes after the Service Tax Department had last week arrested SandeepDoke, a director with Dawan Infrastructure (DIPL), which is one of the contractors for the infra major’s 3,600-MW thermal power plant being executed under a special purpose vehicle (SPV) named IL&FS Tamil Nadu Power Company (ITPCL).
Service tax sleuths further said they issued summons to MS Shrinivasan of IL&FS Tamil Nadu Power Company on Monday, apart from Ravi Nair, another director of DIPL, VirenAhuja, a director of Flemingo Duty Free Shop. Bermaco Industries is a related party of Flemingo Duty Free Shops, which is a service provider to ITPCL.
According to sources, DIPL’s Doke had recovered service tax of Rs 1.64 crore, but remitted only Rs 55 lakh with the department and retained the remaining money for more than six months”. Doke is out on bail currently, the sources said.
ITPCL chief financial officer A Bapat did not respond to calls from PTI today.
Sources said DIPL had entered into an agreement with IL&FS to act as an agent of its power plant in Tamil Nadu to help it procure 2,900 acres needed for the project.
“ITPCL paid Rs 88 crore to DIPL as mobilisation advance for acquiring 2,900 acres for setting up the power project,” said service tax sources.
Apart from DIPL, ITPCL also appointed Krishna Enterprises, and Bermaco Industries as service providers for land procurement, the source said.
Sources further said DIPL had received service charge of Rs 14.34 crore in view of transfer of 111 acres under three invoices dated 15/03/2012, 30/11/2012 and 01/01/2013.
Investigation is being undertaken in respect of services provided by Bermaco Industries to ITPCL for acquisition of land, added the source.