"We have arrested Myron Remedios, Director of Rare Hospitality and Services Limited for default of around Rs 4.5 crore of tax," a source in the Service Tax department said.
According to the department, the company is providing housekeeping services to major hospitals, hotels and corporate clients here.
"They have collected Service Tax from the service recipients from April 2010 onwards, but have not paid it to the department," said the source.
Remedios was involved in the day-to-day operations of the company and was fully aware of the service tax liability of the company, said a department sleuth.
He was arrested yesterday and was remanded to judicial custody till March 24 today.