Baba Ramdev's Trust gets notice from Service Tax department
MDT/PTI 04 June 2012

Haridwar-based Patanjali Yog Peeth has been issued notice for for sale of coupons of different denominations for organising 'yog shivirs' across the country

New Delhi: After Income Tax, it is now turn of the Service Tax department to issue a notice of Rs4.94 crore dues to Yoga guru Baba Ramdev's trust for alleged duty evasion on its income raised through country-wide 'yog shivirs' (camps), reports PTI.

The department's snoop and investigation wing, Directorate General of Central Excise Intelligence (DGCEI), has also launched a scrutiny of accounts of various activities conducted by the trusts run by Ramdev across the country since 2006.

The latest tax notice, after the Income Tax department had slapped a notice of Rs58 crore against Baba Ramdev's trusts, has been issued against the Haridwar-based Patanjali Yog Peeth for "sale of coupons" of different denominations for organising 'yog shivirs', both residential and non-residential.

Thousands of people have participated in these camps conducted across the country in the last five years.

In his reaction, Ramdev's spokesperson SK Tijarawala said they will counter the Service Tax department's action.

"We are replying to the notice. Yog shivirs are classified under the category of providing medical relief which cannot be termed as earning commercial profit," he said.

Sources said income generated from Ramdev's yoga camps, in which people participate after buying coupons, is liable to be brought under the service tax domain.

Under service tax provisions, Yoga is in the taxable list of health and fitness services.

Sources said agency sleuths, during the investigation, recorded country-wide price tags of coupons which were sold in an increasing value order from the back row to the front during these 'yog shivirs'.

The DGCEI has also recorded that while the coupons for non-residential Yoga camps ranged from Rs51-Rs7,000, the rates at residential camps for facilities like air-conditioned tents would cost between Rs8,000-Rs12,000.

The agency has now launched a scrutiny of the balance sheets and ledgers of all the 'shivirs' conducted by Ramdev's trusts in the last five years, following which, sources said, the I-T department will also be informed about the income from these avenues which could have escaped the Income Tax net.

Recently an I-T notice, for the assessment year 2009-10, on Haridwar-based Patanjali Yogpeeth Trust, Divya Yoga Mandir Trust and Bharat Swabhiman Trust have been slapped on the income of Rs120 crore which the I-T department has held as "commercial activities".

Baba Ramdev's trusts have challenged this I-T order saying they have nothing to hide.

Baba Ramdev, who is leading a campaign against black money in the country, heads an organisation that runs the trusts which manages the manufacture and sale of ayurvedic medicines in India and abroad.

His trusts have been enjoying tax exemption under the provisions relating to charitable organisations for the last few years.

Baba Ramdev's trusts are also under the scanner of the Enforcement Directorate (ED) for alleged contravention of foreign exchange rules.

The yoga guru, had last year declared his business empire to be worth more than Rs1,100 crore. The capital involving the four trusts run by him totalled Rs426.19 crore while the expenditure incurred on them amounted to Rs751.02 crore.

While the Divya Yoga Mandir trust has a capital of Rs249.63 crore, Patanjali Yoga Peeth trust has Rs164.80 crore, Bharat Swabhiman trust Rs9.97 crore and Acharyakul Shiksha Sansthan Rs1.79 crore, all totalling Rs426.19 crore.

Satayanarayan Behera
1 decade ago
ITS A REPETATION OFJAJIA TAX which was emposed during Mogal invedars rulling and now its by congress MADAM
Satyanarayan Behera
1 decade ago
Tax lelief to Crickters and IPL but not YOGA. Tax reliefe to GOLD marchet, etc but not to YOGA This is our congress leaders mind set up to get in return bLACK MONEY
1 decade ago
There had been thousands of Yog Shivirs organized for last 8-9 years and many of the officers of government from IT deptt. have taken advantage from these shivirs, then what is the justification in issuing the IT notice now only?. One of the reason may be the Baba Ramdev's rebel against current govt.
Govt. should understand now, there will be no difference in the attitudes of the people whom Baba have aroused against corruption and black-money.
1 decade ago
Tehelka completely closed their investigation wing after harassment of all these tax/duty departments after the Bangaru episode.

I hope that Ramdev will not meet the same fate.
1 decade ago
Congress is taking vendetta on innocents and will have to pay heavily come elections.
1 decade ago
The congress led UPA govt. has become brainless and lost credibility of people.
1 decade ago
Hindus had to pay a 'religious tax' called 'Jajia' during the times of Mughals to perform their religious rights. Now the Congress Govt. has imposed its own Jajia on Yog camps of Baba Ram Dev. It will cost Congress dearly.
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