ST non-filers and stop-filers - We are targeting them - FM
THE Finance Minister said in paragraph 183 of his Budget speech on 28th February 2013,
"While there are nearly 17,00,000 registered assessees under service tax, only about 7,00,000 file returns. Many have simply stopped filing returns. We cannot go after each of them. I have to motivate them to file returns and pay the tax dues. Hence, I propose to introduce a one-time scheme called 'Voluntary Compliance Encouragement Scheme'. A defaulter may avail of the scheme on condition that he files a truthful declaration of service tax dues since 1.10.2007 and makes the payment in one or two instalments before prescribed dates. In such a case, interest, penalty and other consequences will be waived. I hope to entice a large number of assessees to return to the tax fold. I also hope to collect a reasonable sum of money."
FM inaugurating the conference
Addressing the media after inaugurating a conference of the Chief Commissioners of Customs and Central Excise (and of course Service Tax), yesterday, the FM said,
The one-time voluntary compliance scheme for service tax gives an opportunity to assessees to come clean and pay arrears of service tax without interest and without penalty and then pay (taxes) regularly thereafter. Department will advertise it in a big way to encourage assessees to take advantage of the scheme.
Assessees are yet to get used to paying service tax, which is a new levy but the fastest growing tax. Starting with the 4 per cent of the total indirect taxes collected, the service tax now occupies one-third space of the total tax collected.
Assessees are used to the idea of paying excise duty but they don't realise that service tax is only the other side of excise duty. If you produce goods you pay excise duty, you produce a service you pay the service tax. But somehow there is mindset that why we should pay service tax? Why should the beauty parlour pay service tax? People must get to the idea that GDP is made up of goods and services.
It is not surprising that non-filers and stop-filers have mounted in service tax. The number exceeds 12 lakh or so. We are targeting them.
The Empowered Committee of State Finance Ministers on Goods and Service Tax (GST) will elect its Chairman when we meet on the 22nd. It is for them to elect a candidate from among themselves.
Is the FAQ on VCES, 2013, by any coincidence, out?