Service Tax - An Amnesty Scheme for Old Regime
THE new adult Service Tax regime is sure to produce abundant litigation. Service Tax as Pranab Da said in Parliament has entered adulthood. It has completed 18 years on 1st July 2012. And what an atrocious adult it has turned out to be. In its adulthood, it threatens to turn into a monster and is sure to produce mountains of litigation.
Can't we start on a clean slate? Why not wipe out all the existing cases, which were booked when the monster in making was an annoying child and a bullying adolescent?
The Government should seriously consider an amnesty scheme for all the cases pending at all levels from the Assistant Commissioner to the Supreme Court. All the cases should be closed by collecting 10 percent of the outstanding demand of tax, waiving the rest of the tax, penalty and interest. Anyway, Service Tax revenue is booming and the Government can get good revenue without the carcass of all these cases. Even those who do not have cases against them should be encouraged to voluntarily pay up ten percent of what they consider they owe to the Government on the promise of no case being booked against them. For the next five years, let us forget the limitation of five years. By the end of the year, let us ensure that there is no Service Tax case pending with Commissioner (Appeals) and above.
And after that whenever a case reaches the Tribunal, the Board should immediately announce its decision on the case and make a categorical announcement that it would not go for retrospective amendment in the unfortunate even of an assessee winning in the Supreme Court.
Let us start the Negative List with some positive attitude and action.