Pay a little more Service Tax in March and adjust in April
The Government wants the Service Tax for March to be paid by 31st March 2005. But how do you know what exactly is the amount payable and what will happen if you receive a payment after you have made the tax payment into the Bank. As a measure of trade facilitation, the government wants you to pay a little extra amount, apply to the Assistant Commissioner for provisional assessment and then adjust the extra payment in the tax liability for April 2005! As a further facilitation, the department wants the assesses to tender high-value cheques latest by 11 am on March 31 so as to facilitate realisation of the amount by evening on the same day. Special clearing arrangement is made by the Reserve Bank of India, the State Bank of India and other agency banks for the purpose. Assesses should preferably choose transfer cheques, pay orders, demand drafts or cash as the mode of payment on March 31 so that the amounts are realised on the same day – another facilitation measure! The babus seem to be desperate to tell the FM that they have hit the target. Mr. Chidambaram should realise that he will still be the Finance Minister in April 2005, when there will be hardly any revenue.