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
Latest Expert Exchange
« Service Tax »
 How to get registered under goods and services tax
 Service Tax can’t be Levied on Activity of Collection of VAT on behalf of Commercial Tax Dept
 Why you should worry about June 15 advance tax date
 Five reasons why you should start your investments in tax saving funds now
 Income Tax Department Releases All 7 ITR Forms Check Details About New IT Forms
 Income tax benefits for senior citizens: Here is all you need to know in brief
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws

Voluntary service tax scheme not for assesses under probe or audit
March, 08th 2013

The voluntary compliance encouragement scheme (VCES) announced in the Union budget to boost service tax collections will not be made available to tax assesses against whom any inquiry or investigation is pending by issue of search warrant or summons or by way of audit.

Officials explained that this amnesty is only for voluntary disclosures and assesses against whom audit or investigations are on could opt for the compounding available under section 89.

A big loophole in revenue collection is expected to stem from the voluntary compliance encouragement scheme announced in the budget 2012-13. At present, service tax is the lowest contributor to the exchequer even though the sector accounts for the highest share of India’s GDP.

In its detailed guidelines outlined by the minisrty, the defaulter of service tax opting for the scheme will have to deposit at least half the pending dues by December 2013 and the remaining half has to be paid June 30, 2014 without intrerest. The guidelines specify that full and final payment will have to made by December 31, 2014 with interest from July 1, 2014 on the remaining amount.

Moreover it has been clarified that if the service tax payers comply with such conditions, there will be immunity from penalties and other proceedings against them. However they are required to make truthful declarations of all pending dues from October 2007 to December 31, 2012.

The scheme can be availed by non-filers or short-filers (those have filed the returns but have not paid dues or people who have not made truthful declaration of their return).

There is one rider. Officials explained that even if only seven lakh assesses out of total of 17 lakh file their service tax returns, the number of non-filers may be exaggerated.

This is because, even if service tax registrations are online and account for service tax payments by such parties, many a times, small businesses go out of business or change the line of business when the service tax registration is just on paper. There have been instances when tax payers have filed for cancellation of registration but the online platform has not been updated.

Reportedly, the 35 per cent increase in service tax collection for 2013-14 is expected at a time when gross tax collections are rising just 19 per cent rise over the revised estimates of 2012-13. Officials explained that it is a one-time amnesty scheme but would help service tax rapidly catch up with its customs duty and excise duty counterparts, which are projected to yield Rs 1.87 lakh crore and Rs 1.97 lakh crore respectively.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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