As many as 40,000 applications have been filed to avail service tax amnesty scheme till December 29, just two days ahead of the end of the Budget move on Tuesday.
The assesses have declared Rs 5,,500 crore of taxable dues. Half of this amount have to be deposited by December 31 by these assesses under the Voluntary Compliance Encouragement Scheme (VCES).
Revealing this at a press conference here, finance secretary Sumit Bose today asked all service tax evaders to come forward to avail the scheme, otherwise stern action would be taken against the errants after December 31.
This may include arrest and prosecution as well, he warned. The finance ministry has been coming out with advertisements in the media in this regard as well.
The declaration of Rs 5,500 crore of taxable dues would broadly correspond to Rs 55,000 crore of services, Bose said, but refused to divulge details like which segments have contributed the most.
He said VCES has received overwhelming response. "In the last four days, we have received over 16,000 applications involving Rs 1,500 crore of service tax dues," Bose said.
However, 40,000 applications under the scheme constitute only a miniscule of total service tax assesses that have stopped filing returns. In his budget speech, Finance Minister P Chidambaram had said while there are nearly 17 lakh registered assesses under service tax, only about seven lakh file returns.
To enthuse more assesses come forward, the finance ministry has directed all offices that collect applications to remain open "well beyond" normal working hours. Tomorrow, when the scheme is coming to an end, the offices will remain open till midnight.
Bose ruled out extension of the scheme beyond tomorrow.
Those who avail of the scheme will have to file another half of their taxes up to June, 30, 2014 without interest. After that, interest would be levied till December, 31, 2014.
The sum of Rs 5,500 crore does not mean much when compared to over Rs 1,80,000 crore, pegged to be collected from service tax altogether in 2013-14. In fact, part of the amount will spill to the next financial year as well.
However, it is much higher than Rs 1,000 crore, initially estimated to be mopped up from the scheme, officials said.
In his budget speech for this fiscal, the finance minister had said,"I hope to entice a large number of assesses to return to the tax-fold. I also hope to collect a reasonable sum of money."
Source: Business standard
The assesses have declared Rs 5,,500 crore of taxable dues. Half of this amount have to be deposited by December 31 by these assesses under the Voluntary Compliance Encouragement Scheme (VCES).
Revealing this at a press conference here, finance secretary Sumit Bose today asked all service tax evaders to come forward to avail the scheme, otherwise stern action would be taken against the errants after December 31.
This may include arrest and prosecution as well, he warned. The finance ministry has been coming out with advertisements in the media in this regard as well.
The declaration of Rs 5,500 crore of taxable dues would broadly correspond to Rs 55,000 crore of services, Bose said, but refused to divulge details like which segments have contributed the most.
He said VCES has received overwhelming response. "In the last four days, we have received over 16,000 applications involving Rs 1,500 crore of service tax dues," Bose said.
However, 40,000 applications under the scheme constitute only a miniscule of total service tax assesses that have stopped filing returns. In his budget speech, Finance Minister P Chidambaram had said while there are nearly 17 lakh registered assesses under service tax, only about seven lakh file returns.
To enthuse more assesses come forward, the finance ministry has directed all offices that collect applications to remain open "well beyond" normal working hours. Tomorrow, when the scheme is coming to an end, the offices will remain open till midnight.
Bose ruled out extension of the scheme beyond tomorrow.
Those who avail of the scheme will have to file another half of their taxes up to June, 30, 2014 without interest. After that, interest would be levied till December, 31, 2014.
The sum of Rs 5,500 crore does not mean much when compared to over Rs 1,80,000 crore, pegged to be collected from service tax altogether in 2013-14. In fact, part of the amount will spill to the next financial year as well.
However, it is much higher than Rs 1,000 crore, initially estimated to be mopped up from the scheme, officials said.
In his budget speech for this fiscal, the finance minister had said,"I hope to entice a large number of assesses to return to the tax-fold. I also hope to collect a reasonable sum of money."
Source: Business standard
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