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: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: empanelment :: cpt :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: TDS
 
 
« Service Tax »
 Credit Note And Debit Note Under Gst
 Demonetisation hits service tax, excise duty collection
 GST on a knife-edge as states act tough
 Parliament Winter Session: Govt keen on proper discussion on GST Bills
 Service Tax revision to make digital content expensive: Here’s how it will impact you
 GST Council may reduce tax slabs in future: CBEC chief
 Govt to waive service tax on card transactions up to Rs 2,000
 Recovery Of Tax Under Model Gst Law
 Income Tax officials hunt for Mumbai’s ‘ghost’ assessee
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley

Service tax evaders under scanner
July, 25th 2011

The government is set to crack down on nearly nine lakh service providers -- constituting almost 60% of those registered with the tax department - for not filing returns.

A recent study by the finance ministry has revealed that of the 15 lakh service providers across the country, only six lakh are filing returns regularly, projecting their business profits. The remaining are not filing returns and are off the radar of the tax authorities.

Based on inputs with the Central Board of Excise and Customs, the Directorate General of Central Excise Intelligence (DGCEI) and service tax authorities in different regions have been asked to carry out a comprehensive survey of entities that are still in businesses but have turned 'stop filers' as officials believe that several of them are evading taxes.

The move comes at a time when the government is trying to garner resources from all possible sources to maximize revenue collection and meet the deficit targets fixed in the budget. During 2010-11, service tax collections rose 22% to Rs 71,309 crore, while overall revenue collection went up 27.3%. Within indirect taxes, customs duty collections had increased by 63% while central excise mop up was 33.5% higher, according to data on the Controller General of Accounts' website.

So far this year, service tax collections have increased 34%, which is higher than the overall collections. According to finance ministry's assessment, there is no slowdown in the services sector, barring financial services.

The tax authorities are, however, moving to ensure that the 'stop filers' do not get away. Officials said during April-June, at least 100 cases were booked against several companies and a tax demand of Rs 1,650 crore was raised against them. Some of the firms booked included those that had filed returns but had indulged in under-invoicing and evading taxes.

Some of the major detections of service tax evasion were found in renting of immovable properties, business support services, telecommunication services, management, maintenance or repair and commercial or industrial construction services.

The most prevalent modus operandi adopted by evaders was providing the services in a clandestine manner without accounting for service tax. So, services providers resorted to suppressing the transactions from the department by not declaring them in the returns or there was wrong availment of exemption notifications.

In some cases, tax was collected from the consumers but was not deposited with the government and companies also went to the extent of availing of Cenvat credit. Under the revised rules, companies, including those in the manufacturing sector, are entitled to refund of taxes by way of credit for services availed of during the course of business.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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