Latest Expert Exchange Queries
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: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARD :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: empanelment :: articles on VAT and GST in India :: cpt :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARDS
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Budget 2013: Govt seeks to get tougher on service tax, customs violations
March, 04th 2013

Finance minister P Chidambaram has inserted at least half-a-dozen provisions in the Finance Bill to make certain offences related to customs and excise duty non-bailable, while providing for arrest for violation of service tax, raising fresh concerns over powers being vested with revenue authorities.

For instance, for offences related to service tax evasion - especially for non-payment of collected service tax - a commissioner rank officer can order arrest. So, if an airline or a restaurant collects service tax from customers but doesn't deposit it with the tax department, the service provider can be arrested in future.

Similarly, in case of customs duty there are at least four cases where the government has proposed to make offences non-bailable under section 135 of the Customs Act.

Duty evasion or even "attempted evasion" of over Rs 50 lakh has now been made non-bailable. Similarly, failure to properly disclose import or export of goods worth over Rs 1 crore will face the same treatment as will fraudulently claiming drawback or exemptions.

Duty evasion over Rs 50 lakh? No bail

In case of the Central Excise Act, the Finance Bill has proposed to amend the law to make duty evasion or improper availment of Cenvat credit of over Rs 50 lakh cognizable offence and also non-bailable. Cenvat credit refers to taking credits or seeking refunds for excise paid by a vendor of product.

"Section 91 (for service tax) is a retrograde step. The government is trying to squeeze service tax payers to increase collections by 45% to Rs 1.8 lakh crore," said Bishwajit Bhattacharya, a former additional solicitor general. He said the powers for prosecution had been removed from the statue several years ago and were now being brought back.

For the industry, the bigger fear is misuse of the provisions by junior officers. "The government will have to ensure that the powers are not used to harass taxpayers. But in general, it goes against the intent of ushering in a non-adversarial tax regime," added Pratik Jain, partner at consulting firm KPMG.

Over the years, when it came to economic offences the government had started shifting to a simpler regime but over the last two years the trend seems to be changing.

Even last year, Pranab Mukherjee's move to increase the powers with customs and excise officials had come in for criticism. As a result, the government dropped its plans to make certain violations of the customs and excise laws cognizable and non-bailable.

Highlights

Service tax: New provision to arrest for non-payment of service tax

Excise duty

* Extend imprisonment term to 7 years, with fine, if leviable duty is over Rs 30 lakh

* If duty liability crosses Rs 50 lakh, govt plans to make the offence cognizable and non-bailable

Customs duty

* Evasion, attempted evasion of specified type made non-bailable if duty exceeds Rs 50 lakh

* Availing drawback or other exemptions of over Rs 50 fraudulent made non-bailable offence

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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