Benefits for Defaulting Service Tax Payers

The service tax department of State government has come up with a plan to those who never pay service tax. More than half the registered assessees (those who are to pay service tax by law) do not pay the tax. Many others have not registered with department yet.

Under the norms of ‘Service Tax Voluntary Compliance Encouragement Rules 2013’, government is offering a ‘one-time Voluntary Compliance Encouragement Scheme.’ The scheme is said to be an amnesty scheme for those who never filed tax returns and who stopped filing.

Under the proposed scheme, dues in Service Tax since October 1, 2007 to December 31, 2012 can be disclosed and paid, subject to condition that there should not be any inquiry, audit or investigation pending as on the March 1, 2013.

An assessee can pay the dues in two instalments: half before close of the year 2013 and the remaining by close of June 2014. If not cleared by close of June, interest has to be paid from beginning of July 2014.

Source – Deccan chronicle