Assessees beware – It's revenue times
In-depth revenue analysis of selected taxable services ordered
The Board feels that certain services having major revenue potential are either showing a negative growth or showing a growth rate much less than expected. Board has listed some services which have limited number of taxpayers, such as ( i ) Telecom Services, (ii) Stock Brokers Services/Commodity exchange, (iii) General Insurance Services, (iv) Insurance Auxiliary Services, (v) Air Travel Agent Services, (vi) Tour operator Services, (vii) Broadcasting Services, (viii) Transport of goods by Air Services, (ix) Transport of goods through pipe lines, (x) Port Services, (xi) Banking and other financial Services, (xii) TV/Radio programme production Services.
CBEC wants the Commissioners and Chief Commissioners to do an in-depth analysis to ascertain the reasons for low growth. The idea is that with limited resources, if efforts could be concentrated in finding out the reasons for such inadequate growth in respect of these services and adequate steps could be taken to augment revenue during the last quarter of the current Financial Year, it may lead to better overall revenue performance.
So these service providers may get friendly calls from the polite Service Tax officers soon and you will find Revenue shooting up in the next 45 days.
Board wants the field bosses to do the following
1. Intensive audit (if not done already) including special audits (if felt necessary) to verify be correctness of Cenvat Credit availment.
2. Intensive scrutiny of the last four returns – from April 2006.
3. Contact the taxpayers (preferably through association) and ascertain the reasons for low growth as well as the projected revenue during the last quarter.
4. Further, in certain cases (like stock brokers, telecom, general insurance etc.) the information about the turnover of the service providers are available with third party sources, such as regulatory authorities, stock exchanges, Income tax department etc. Attempt should be made to obtain such third party data and compare the same with return data.
5. Further published/printed information in respect of service provider providing these services may also be collected and compared with the information furnished in the service tax return.
The growth in revenue from the selected services is being monitored at the level of Secretary (Revenue).
So Action Taken reports have to be sent to DGST on 1.2.08 and 1.3.08, who will forward it to Member (Service Tax) who will ……?
Board's F. No . F.No . Dated : January 4, 2008