New Delhi, Aug. 31: Managing Director of Net4 India Ltd Jasjit Singh Sawhney, who has been held for not depositing service tax, was granted conditional bail up to September 3 by the Chief Metropolitan Magistrate in Patiala House Court today on payment of Rs 25 lakh.
He was arrested by officers of Delhi Service tax yesterday. Net 4 India Ltd is engaged in providing Networking Services. The company has pending liability of approximately Rs 9 crores for the Financial Year 2012-13. Major chunk of this liability has been collected by the company from its clients as service tax to be paid to the Government exchequer, but was not deposited with the government.
Accused has been arrested under section 91 for a cognizable offence punishable under section 89 (1) (d) (ii) of the Finance Act 1994.
In terms of this provision, any person who has collected Service tax of more than Rs. 50 Lakh and fails to pay the amount so collected to the credit of central Government beyond of a period of six months from the date on which such payment becomes due, shall be punishable with imprisonment for a term which may exceed to 7 years.
He was produced before the Chief Metropolitan Magistrate in Patiala House court today where he was granted conditional bail up to September 3 on payment of Rs. 25 lakh immediately and Rs. 75 lakhs with in 15 days and Rs. 1 crore per month subsequently. (ANI)