Service Tax Under Voluntary Compliance Encouragement Scheme (VCES) Brings Rs. 480 Cr Revenue
Hyderabad has collected Rs. 480 crore from service tax under VCES as against target amount Rs. 250 crore.
The VCES is open to businesses who defaulted to pay the tax: collected service tax from their customers and did not pay it to government.
According to sources, there are still a big number of defaulters who have not complied the service tax norms. They did not ever pay service despite they are registered with the service tax department. The authorities may seize their property and bank accounts.
Further, there are business entities who have not registered themselves with the department or keep counterfeit bill books.
Construction and IT related services sectors have contributed the biggest portion of the revenue.
Theatre owners, exhibitors, builders were major entities who did not comply with service tax. The other entities include cosmetic and slimming clinics, entertainment industry, media houses, subcontractors, etc.
Significantly, the revenue generated under VCES amounts to 10% of the total revenue collected on account of service tax.
Source – Times of India