Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: cpt :: form 3cd :: due date for vat payment :: list of goods taxed at 4% :: empanelment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS
Service Tax »
 Why is the successful roll-out of the e-way bill necessary?
 How service tax became revenue lifeline for the Govt
 Three simple tricks to save income tax without investing fresh funds
 Goods and Services Tax (Compensation to States) Amendment Act, 2017.
 Services sector need to brought under Section 72A of the Income-Tax Act
 Simplifying GST: Creating a Grand Simple Tax
 The way ahead for goods and services tax
 Goods & Service Tax (GST): Recent Clarifications
 Tax payers can see status of returns filed on GSTN portal
 Export And Import Of Goods Under GST
 The Finance Resolution And Deposit Insurance Bill, 2017

Construction firms top service tax amnesty charts
October, 09th 2013

If the applications for availing of the government’s service tax amnesty scheme are any indication, companies involved in construction and works contracts might well be among the biggest evaders of service tax. According to preliminary information with the finance ministry, these two sectors account for the bulk of the application; transportation and supply of manpower follow.

The Service Tax Voluntary Compliance Encouragement Scheme (VCES), announced in Budget 2013-14, had drawn 3,681 applications declaring tax to the tune Rs 897 crore as on September 30. Of this, tax of Rs 58 crore had already been paid, while the rest was to be paid by December 31, when the scheme would close. The scheme is likely to bring to the exchequer about Rs 1,500 crore this year — 50 per cent more than the initial internal estimate of Rs 1,000 crore.

A finance ministry official said some of these applications that didn’t meet the eligibility criteria might be rejected. But the exchequer might still get about Rs 1,500 crore. The worry, however, is that many taxpayers have stopped making regular payments and are applying under the scheme to avoid interest, penalty and prosecution on evasions since 2007. Moreover, under VCES, service tax defaulters can pay half their dues by December 2013 and the rest by June 2014. Generally, the service tax collected has to be paid to the government in a month. Payment defaults in tax collections exceeding Rs 50 lakh become non-bailable offence only after six months from the due date.

The underreporting of services would be even higher. Services tax is levied at 12 per cent and at that rate the undisclosed amount would be Rs 7,475 crore. However, as abatement is allowed on many services, the value of total business that goes unreported would be higher. In case of flats, abatement is 70 per cent and the rate varies in other categories of construction, works contract, etc. Now, assuming an abatement rate of 70 per cent, this would mean services worth Rs 24,917 crore were not reported.

“The trend emerging as of now is that a lot of taxpayers from the construction and works contracts are applying for the scheme,” said another finance ministry official.

An addition of Rs 1,500 crore would be a major boost to service tax collections this year, pegged at Rs 1,80,141 crore; and, declaration of service tax dues could add only a bit to the country’s GDP. The underreporting of business worth Rs 24,917 crore would account for only 0.24 per cent of India’s GDP in 2012-13. However, the exercise would bring new taxpayers to the government and add to GDP in subsequent years. At present, the services sector contributes about 65 per cent to GDP, while service tax constitutes less than a third of total indirect tax collections.

At present, of the 1.7 million registered assesses under service tax, only 700,00 are filing returns; some are exempted and some have turnovers of less than Rs 10 lakh.

According to government estimates, service tax evaders deprived the exchequer of over Rs 9,872 crore during April-December 2012. During this period, 4,133 cases of service tax defaults were detected; over Rs 1,969 crore has been realised from these defaulters.

A defaulter can avail of the one-time scheme on the condition that he files a truthful declaration of service tax dues since October 2007 and makes the payment in one or two instalments.

This is for the first time that an amnesty scheme has been announced for service tax evaders. A Voluntary disclosure of income scheme had been launched by the finance ministry in 1997 and it had helped increase income-tax collections dramatically that year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions