Compliance scheme to ‘entice’ 10 lakh service tax dodgers
2 March 2013 5:23 AM IST
Aiming to 'entice' a large number of assessees to return to the tax fold, the government on Thursday proposed a one-time scheme called 'Voluntary Compliance Encouragement Scheme' for service tax defaulters.
A defaulter may avail the scheme on the condition that he files a truthful declaration of service tax dues since 1 October 2007 and makes the payment in one or two instalments before the prescribed dates.
'In such a case, interest, penalty and other consequences will be waived. I hope to entice a large number of assessees to return to the tax fold. I also hope to collect a reasonable sum of money,' Finance Minister P Chidambaram said while presenting Union Budget for 2013-14 in Parliament.
Highlighting that only 7,00,000 out of the nearly 17,00,000 registered service tax assessees were filing returns, Chidambaram said: 'We cannot go after each of them. I have to motivate them to file returns and pay the tax dues.'Besides, there would be no change in the normal rate of service tax levied presently at 12 per cent, he said.
Emphasising on the importance of a stable tax regime, Chidambaram added only two more services into the negative list including vocational courses offered by institutes affiliated to the State Council of Vocational Training and testing activities in relation to agriculture and agricultural produce.
A defaulter may avail the scheme on the condition that he files a truthful declaration of service tax dues since 1 October 2007 and makes the payment in one or two instalments before the prescribed dates.
'In such a case, interest, penalty and other consequences will be waived. I hope to entice a large number of assessees to return to the tax fold. I also hope to collect a reasonable sum of money,' Finance Minister P Chidambaram said while presenting Union Budget for 2013-14 in Parliament.
Highlighting that only 7,00,000 out of the nearly 17,00,000 registered service tax assessees were filing returns, Chidambaram said: 'We cannot go after each of them. I have to motivate them to file returns and pay the tax dues.'Besides, there would be no change in the normal rate of service tax levied presently at 12 per cent, he said.
Emphasising on the importance of a stable tax regime, Chidambaram added only two more services into the negative list including vocational courses offered by institutes affiliated to the State Council of Vocational Training and testing activities in relation to agriculture and agricultural produce.
Next Story
