New Delhi: Service tax, Customs and excise duty defaulters will get "polite letters" seeking information about their pending liability and any suspicions on dealings by them, possibly with black money.

The method of non-intrusive letters will be sent to seek clarifications from an entity or an individual who has carried out a financial transaction, red-flagged by economic intelligence agencies as black money or seen as an attempt to dodge paying of taxes, finance ministry officials said. It will be for the first time that such polite letters will be issued to indirect tax defaulters.

Earlier, only the income tax department issued such letters to tax dodgers. The Directorate General of Central Excise Intelligence (DGCEI) and Directorate General of Revenue Intelligence (DGRI), have been made the nodal authorities for the purpose.

While the DGCEI will send the letters to service tax and excise duty defaulters, the DGRI will send them to Customs duty evaders. Both DGCEI and DGRI will coordinate with Financial Intelligence Unit, an agency tasked with analysing and disseminating information relating to dubious deals, to check flow of black money via service Customs and excise duty evasions.

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