Mumbai, Aug 29: Service tax collections have touched Rs 1,800 crore till date in the current fiscal even as the government today warned of strong action against those willfully avoiding to pay this tax. New services have been added under the tax net from July and the department has collected about Rs 1,800 crore till date, Central Board of Excise and Customs (CBEC) member S K Misra told reporters on the sidelines of seminar organised by Indian Merchants Chamber here today.
"CBEC expects to collect Rs 8,000 crore in 2003-04 and do not intend to scale down the target due to addition of new activities", Misra said, adding the tax credit facility, hike in the rate from five per cent to eight per cent and extended coverage should increase revenues.
Services accounted for 52 per cent of India's gross domestic product and the sector has to be tapped for the resources which the government requires, the member added.
"Service tax registrations have touched 2.25 lakh as on March 31, 2003 but we are not satisfied with this number, it should be above 10 lakh", he said adding "we believe that people would pay tax voluntarily".
"The board has search and seizure powers and when there is information that some persons were willfully avoiding the payment of tax, we will take action", Misra said.
Bureau Report