Trusts run by yoga guru Ramdev have been slapped with a hefty fine of Rs 5 crore for allegedly evading service tax.

The revenue department has claimed that the yoga camps organized by Ramdev's Divya Yoga Trust and Patanjali Yoga Peeth are commercial activities, for which no services taxes were paid.

A senior finance ministry official said, "The directorate general of central excise intelligence has sent notices for alleged service tax evasion to the tune of Rs 5.14 crore."

As per the official, the notices were sent late last month after the department found ample evidence against the trusts' activities.

However, a spokesperson for Ramdev claimed that the trusts are exempted from the net of service tax because they are doing charitable work by providing the poor with medical relief.

Yoga guru Ramdev, who has long been demanding the government to bring back black money deposited in Swiss banks to India, manages trusts that produce and sell ayurvedic medicines in India as well as abroad. The four trusts run by the controversial yoga guru have declared a combined capital of Rs 426.19 crore.

But, an investigating officer said that the trusts were openly taking donations from attendees of their yoga camps but called them charitable in nature to avoid service tax net.