Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Service Tax »
Open DEMAT Account in 24 hrs
 Salaried? Rental tax calculation rules you should know before ITR filing in 2023
 What are new tax regime's slabs? Know its limits, benefits, and more
 How much additional tax do you need to pay? ITR filing last date for FY 2019-20
 Income Tax Return Filing: How to file ITR - step-by-step guide
 New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
 Income Tax Return filing 2023 data: How many Indians aged 18-35 years file ITR?
 Make tax-saving a part of your overall investment plan
 Filing ITR? Maximize Your Tax Savings With These 7 Allowance Benefits
 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act, 1961 ('Act') in view of the then-Covid-19 pandemic
 Missed Income Tax Return filing due date for AY 2022-23? Here s one more chance
 What are the tax saving investments other than section 80C for senior citizens?

Government accepts over 3,000 offers to pay service tax arrears
November, 18th 2013

The government has accepted almost all applications seeking to pay service tax arrears that have been submitted thus far, with just 1% of them having been rejected.

Of a total 17 lakh registered service taxpayers, only seven lakh have been paying the levy, according to the finance ministry. The Voluntary Compliance Encouragement Scheme (VCES)is aimed at encouraging those who haven't done so to come forward and pay up.

"We are asking to pay tax from 2007 to 2012 and we are giving up interest on this levy,"finance minister P Chidambaram said recently in Mumbai. "The government is actually givingup legitimate revenue and I don't think there could be a more generous offer than this."

The scheme is along the lines of 1997 Chidambaram's Voluntary Disclosure of Income Scheme (VDIS) that was aimed getting people to pay tax on black money.
The revenue department has so far received 6,409 applications, of which 3,085 have been accepted, the minister said last week. Only 89 have been rejected while 3,235 cases are waiting to be processed, Chidambaram said.

"I have instructed the department to accept as many applications as possible and make it more accommodative rather then going behind people," said the minister, who has a service tax collection target of around Rs 1.80 lakh crore in the current fiscal year.

"The scheme will be successful only if the department changes its approach towards assessees," said Sachin Menon, partner and national head, indirect tax and regulatory services at KPMG. "People are not aware of the consequences and once they come to know about it, there will be surge in applications for coming out clean."

The tax is levied on all services except those services in a negative list. The current rate is 12.36% on gross value of the service. "It appears that the government is willing to collect as much revenue as possible and for that interest has been waived too," which is very rare, said Pritam Mahure of Pune-based tax advisory firm Lawgical Consultant. "People who have already paid entire applicable service tax may not benefit from the scheme, but people who have not paid the applicable service tax, this is one opportunity where they can pay service tax and come clean.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2023 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting