Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: form 3cd :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT Audit
 
 
Service Tax »
 Goods bought with loyalty points will face tax under GST
 substitution of Service Tax by Goods and Services Tax (GST)
 Income Tax: TDS deducted but ITR not filed? Here's what professionals need to do
 9 ways GST could impact home buyers
 Consumers hailed GST, but there's need for awareness'
 Tax departments keep a close watch on prices post GST rollout
 GST effect: 5 things that changed after the new tax regime
 GST is no game changer for farmers, yet
 GST: Government bets big on tech to ensure e-way bill does not bring back inspector raj
 Government to keep an eye on price rise & GST glitches
 Here’s how to use your GST savings smartly

Service tax arrears paid before May 10 unlikely to attract penalty
November, 26th 2013

People paying service tax arrears before May 10 can get relief from penalty, the Finance Ministry has indicated.

In a statement issued here on Monday, the Ministry clarified that in cases where service tax dues have been paid in between the date of announcement and actual implementation of Service Tax Voluntary Compliance Encouragement Scheme (VCES) – March 1 and May 10 – relief from penalty can be considered.

VCES gives a one-time opportunity to defaulters to come clean and is a ‘no penalty, no interest’ scheme.

Under it, defaulters have to pay at least 50 per cent of arrears for the five-year period ending 2012 and the balance in another six months without interest.

During the interaction with trade and industry bodies earlier this month, the Finance Ministry had received a lot of queries on the status of tax arrears paid during the lag period (March 1 and May 10) before the actual implementation of VCES.

The question was, “Whether declaration can be made in such case where service tax pertaining to the period covered by the scheme along with interest has already been paid by the parties, before it came into effect, so as to get waiver from penalty and other proceedings?”

The Ministry has now clarified that since no ‘tax dues’ are pending in such cases, declaration cannot be filed under VCES.

“However, there may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 1994,” it added. The scheme is closing on December 31.

As of now, the scheme has got over 5,000 applications with tax payment of over Rs 1,000 crore.

During the interactions with trade and industry bodies, another apprehension was raised that declarations are being considered for rejection even though the ‘tax dues’ pertain to an issue or a period, which is different from the issue or the period for which inquiry, investigation or audit was pending as on March 1, 2013.

To this the Finance Ministry clarified that conditions for rejecting application under the scheme might be construed strictly and narrowly.

It explained that if an inquiry, investigation or audit, pending as on March 1, 2013, was being carried out for the period from 2008-11, benefit of the scheme would be eligible in respect of ‘tax dues’ for the year 2012. The year 2012 is the period not covered by the inquiry, investigation or audit.

Also, if an inquiry or investigation, pending as on March 1, 2013 was in respect of a specific issue, say renting of immovable property, benefit of the scheme would be eligible in respect of ‘tax dues’ concerning any other issue in respect of which no inquiry or investigation was pending as on March 1, 2013.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

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