Lok Sabha Question No. 1729 (UNSTARRED), answered on 2016-11-25
Subject: Outstanding Taxes
Ministry: FINANCE
Asked by: KRUPAL BALAJI TUMANE, RAMDAS CHANDRABHANJI TADAS

(a):

## Direct Tax

As  on  30.6.2016,  there  are  80  cases  having  outstanding  demand  exceeding  Rs.1000  Crores each,  aggregating  to  Rs.4,53,518  Crores.  However,  disclosure  of  information  in  specific  cases  is prohibited except as provided under section 138 of the Income-tax Act, 1961.

## Indirect Tax

The details of companies having outstanding taxes of more than Rs. 1000 crore are as under:-

|   Sl. No. | Name of Company/ Person                                    | Central Excise Duty involved & No. of cases   | Service Tax involved & No. of cases                  | Total amount & No. of cases   |
|-----------|------------------------------------------------------------|-----------------------------------------------|------------------------------------------------------|-------------------------------|
|         1 | M/s Tata Motors Ltd.                                       | 629.76 crore (91 cases)                       | 516.09 crore (5 cases)                               | 1145.85 crore (96 cases)      |
|         2 | M/s Karnataka Industrial Area Development Board, Bangaluru | Nil                                           | 2590 crore (Service Tax with equal penalty) (1 case) | 2590 crore (1 case)           |

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO. 1729

TO BE ANSWERED ON FRIDAY, NOVEMBER 25, 2016 AGRAHAYANA 4, 1938 (SAKA)

## OUTSTANDING TAXES

## 1729: SHRI KRUPAL BALAJI TUMANE: SHRI RAMDAS C. TADAS:

Will the Minister of FINANCE be pleased to state:

- (a) the details of persons/companies having outstanding taxes of more than Rs. 1000 crore;
- (b) the steps taken by the Government for recovering the said taxes;
- (c) whether the Government proposes to make public/publish the names of all such above companies/persons; and
- (d) if so, the details thereof and action taken thereon?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SANTOSH KUMAR GANGWAR)

|   3 | M/s Karnataka Housing Board, Bangaluru   | Nil   | 1083 crore (Service Tax with equal penalty) (1 case)   | 1083 crore (1 case)   |
|-----|------------------------------------------|-------|--------------------------------------------------------|-----------------------|
|   4 | M/s. Kingfisher Airlines Ltd             | Nil   | 1012.96 crore (Service Tax with penalty)               | 1012.96 crore         |

(b):

## Direct Tax

A  large  part  of  the  outstanding  taxes  is  under  dispute  or  difficult  to  recover  due  to  various reasons.  Action for recovery of the outstanding demands is taken in accordance with the provisions of the Income-tax Act, 1961 on continuous basis.  Strategies and targets to collect the same are laid down in the beginning of every financial year as part of the Central Action Plan document. Efforts of the  assessing  officer  to  collect/recover  the  outstanding  demands  are  regularly  reviewed  and monitored by the hierarchical superior authorities.  Databases like Individual Transactions Statement and  360-degree  profile  generated  by  the  department  and  those  maintained  by  the  third  party agencies like FIU-IND, etc are regularly made available to the field units for identification of assets for recovery.  Guidelines for Tax Recovery Officers for recovery and for dealing with stay petitions, etc have been issued.  Efforts for early disposal of appeal are also undertaken.  A new reward scheme for information leading to recovery of arrears has been notified.

## Indirect Tax

Recovery of Central Excise duty, Customs duty and Service Tax is done in terms of Section 11 of the Central Excise Act, 1944 and Section 142 of the Customs Act, 1962 to the extent it applies to Central Excise duty, Section 28 and 142 of the Customs Act, 1962 and Section 73, 73A to 73D and 87  of  the  Finance  Act,  1994.  Besides,  various  steps  have  been  taken  to  reduce  tax  arrears  and increase  recovery.   These  steps  include  filing  of  early  hearing  petitions  in  those  cases  where substantial amount of arrears has been locked up in various courts / appellate forms, bunching of cases of similar nature for expeditious disposal  by the appellate authorities, expeditious action for realisation of arrears by attachment of movable / immovable assets for recovery from sums due in those cases where no stay is granted or where stay granted has lapsed, filing of departmental claims of  pending  matters  before  Board  for  Industrial  Financial  Reconstruction  (BIFR),  Debt  Recovery Tribunals  (DRT)  and  Official  Liquidators  (OL)  in  a  timely  manner  and  to  pursue  them  vigorously, sharing  details  of  defaulters  with  Financial  Intelligence  Unit  (FIU),  National  Securities  Depository Limited (NSDL) / Central Depository Services India Ltd (CDSL) and like authorities to ascertain the information about their income source/ property etc.

(c) & (d):

## Direct Tax

Publishing of names of only such companies/persons is considered where tax is undisputed, no appeal  is  pending  and  no  stay  is  granted  by  any  Court  or  income-tax  authority,  and  where  other conditions regarding non-traceability of the taxpayer and non-availability of assets are also satisfied. Based on these criteria, names of 67 entities have been placed in public domain in the last three years.

## Indirect Tax

There is no such proposal.

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