BackService tax dues of `5,500 crore uncovered under amnesty scheme
Tax authorities receive 40,000 applications from evaders owing a total of `5,500 crore
Premium
New Delhi: Tax authorities have received 40,000 applications from service tax evaders owing a total of ₹ 5,500 crore in tax dues under the voluntary compliance encouragement scheme (VCES).
There has been a last-minute rush from evaders who want to benefit from the scheme that ends on 31 December, said finance secretary Sumit Bose. The response has been good, he added.
In the last four days alone, the government has received 16,000 applications for dues of around ₹ 1,500 crore, he said.
The amnesty, announced in this year’s budget, gave service tax defaulters the chance to pay up dues without having to pay interest or penalty on them.
Defaulters can pay service tax dues for the period from 1 October 2007 to 31 December 2012. They can pay upto 50% of the total dues by 31 December and the remaining 50% by 30 June 2014.
This brings under the tax net a sum of around ₹ 55,000 crore of services that has so far been out of the net, Bose said.
To be sure, according to government estimates, of the 1.7 million registered service tax assessees, only 0.7 million file their returns, an indication that the government still has a long way to go to ensure that all service providers come under the tax net.
Bose warned that after the end of the scheme, tax authorities will step up efforts to find the remaining service tax defaulters who will then face arrest and prosecution.
The government is expecting more defaulters to avail of the scheme in the last two days and has taken a number of steps to facilitate easier access, including longer banking hours.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
