NEW DELHI: Aimed at widening revenue from indirect tax, the Finance Ministry has implemented one-time amnesty scheme for service tax defaulters to pay their due without any penalty or late payment charges.
The 'Voluntary Compliance Encouragement Scheme', which came into force after passage of Finance Bill on May 10, can be availed by a service tax defaulter by this year end.
A defaulter may declare his due tax liabilities, including the cess charges, for a period between October 1, 2007 and December 31, 2012 and pay it to the government after making a truthful declaration and can avoid penalty, interest or any other penal proceedings.
The first-of-its-kind scheme was introduced by Finance Minister P Chidambaram while presenting budget for 2013-14.
Of the 17 lakh registered assesses under Service tax, only seven lakh were filing returns, Chidambaram had said.
"Many have simply stopped filing returns. We cannot go after each of them. I have to motivate them to file returns and pay the tax dues. Hence, I propose to introduce a one-time scheme called 'Voluntary Compliance Encouragement Scheme'," the Finance Minister had said.
However, any person who has furnished return and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof, will not be eligible to make declaration for the period covered by the said return, the Finance Bill says.
To further encourage voluntary compliance by defaulters, the Finance Ministry has also decided to "reject" any enquiry or investigation against an evader, if he comes forward to make truthful declaration under this.
"A person may make a declaration to the designated authority on or before the 31st day of December, 2013," it said.
The 'Voluntary Compliance Encouragement Scheme', which came into force after passage of Finance Bill on May 10, can be availed by a service tax defaulter by this year end.
A defaulter may declare his due tax liabilities, including the cess charges, for a period between October 1, 2007 and December 31, 2012 and pay it to the government after making a truthful declaration and can avoid penalty, interest or any other penal proceedings.
The first-of-its-kind scheme was introduced by Finance Minister P Chidambaram while presenting budget for 2013-14.
Of the 17 lakh registered assesses under Service tax, only seven lakh were filing returns, Chidambaram had said.
"Many have simply stopped filing returns. We cannot go after each of them. I have to motivate them to file returns and pay the tax dues. Hence, I propose to introduce a one-time scheme called 'Voluntary Compliance Encouragement Scheme'," the Finance Minister had said.
However, any person who has furnished return and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof, will not be eligible to make declaration for the period covered by the said return, the Finance Bill says.
To further encourage voluntary compliance by defaulters, the Finance Ministry has also decided to "reject" any enquiry or investigation against an evader, if he comes forward to make truthful declaration under this.
"A person may make a declaration to the designated authority on or before the 31st day of December, 2013," it said.
Source : http://economictimes.indiatimes.com
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