Limitations of Service Tax Amnesty Scheme
Service tax amnesty scheme offers to relieve defaulters of penalties when they disclose under the scheme. However, the enthusiasts will have to consider the limitations of the scheme that can thwart them from receiving benefits from the same.
Need for Introduction Compliance Plan: -
A colossal amount of money that rightfully belongs to the treasury of the Government of India is stuck unlawfully somewhere with the tax payers who were supposed to cough it out a very long time ago. The urge for assessees to not part with what they mistakenly consider to be their share of income has resulted in the creation of a massive crater in their reserves that has been thwarting the attempts of the authorities from carrying out their duties towards ensuring common welfare and other relevant plans for the entire country.
The fear of punishments that is sure to be earned on forced disclosures have threatened many defaulters to hide further behind their veils making it even more challenging for the authorities to locate them and get their due amount back. Thus, the compliance plan has been introduced to ensure easy and threat free disclosure in the part of the evaders and easy recovery of massive due amounts of financial resources in the part of the government.
Main Attractions of the Compliance Scheme: -
What makes the compliance scheme attractive is the fact that it removes the axe of all penalties and punishments on disclosure that would otherwise not have been possible under ordinary circumstances. Removal of any kind of imposition of fines and interests, cancellation of licenses or, even imprisonment has been made effective under the main provisions of the scheme which is better recognized as service tax amnesty scheme for all the massive pardons that it grants.
Elimination of major punishments and ensuring secrecy of the details of the disclosing party, more and more evaders are coming out of the dark and making their share of attempts to get back to the good books of the authorities. The matter of concern here though, is the fact that this scheme is not open for all is fraught with many limitations which can make it impossible for many to seek benefit under the same.
Limiting Factors of the Service Tax Amnesty Scheme: -
Date restriction is the first and perhaps the most important limiting factor about this scheme. This means that this scheme is applicable for the dues that have been amassed from the period of 01.10.2007 to 31.12.2012. Normal rules will apply for the dues that may have been gathered from the period of 01.01.2013. Filing of disclosure under this scheme is also to be done within 31.12.2013 failing, the evader will be brought to books under the usual regulations of the process.
Secondly, this scheme is applicable only to a certain group of defaulting assessees including mainly those who were supposed to pay their taxes within the mentioned period but have not. The group of ineligible assessees however, includes
It is thus, very important for all those who are willing to seek cover under the scheme to make their moves fast because time is very less. It is also equally important for the same to seek professional assistance to maximize their chances of succeeding in seeking benefits under the provisions.
Need for Introduction Compliance Plan: -
A colossal amount of money that rightfully belongs to the treasury of the Government of India is stuck unlawfully somewhere with the tax payers who were supposed to cough it out a very long time ago. The urge for assessees to not part with what they mistakenly consider to be their share of income has resulted in the creation of a massive crater in their reserves that has been thwarting the attempts of the authorities from carrying out their duties towards ensuring common welfare and other relevant plans for the entire country.
The fear of punishments that is sure to be earned on forced disclosures have threatened many defaulters to hide further behind their veils making it even more challenging for the authorities to locate them and get their due amount back. Thus, the compliance plan has been introduced to ensure easy and threat free disclosure in the part of the evaders and easy recovery of massive due amounts of financial resources in the part of the government.
Main Attractions of the Compliance Scheme: -
What makes the compliance scheme attractive is the fact that it removes the axe of all penalties and punishments on disclosure that would otherwise not have been possible under ordinary circumstances. Removal of any kind of imposition of fines and interests, cancellation of licenses or, even imprisonment has been made effective under the main provisions of the scheme which is better recognized as service tax amnesty scheme for all the massive pardons that it grants.
Elimination of major punishments and ensuring secrecy of the details of the disclosing party, more and more evaders are coming out of the dark and making their share of attempts to get back to the good books of the authorities. The matter of concern here though, is the fact that this scheme is not open for all is fraught with many limitations which can make it impossible for many to seek benefit under the same.
Limiting Factors of the Service Tax Amnesty Scheme: -
Date restriction is the first and perhaps the most important limiting factor about this scheme. This means that this scheme is applicable for the dues that have been amassed from the period of 01.10.2007 to 31.12.2012. Normal rules will apply for the dues that may have been gathered from the period of 01.01.2013. Filing of disclosure under this scheme is also to be done within 31.12.2013 failing, the evader will be brought to books under the usual regulations of the process.
Secondly, this scheme is applicable only to a certain group of defaulting assessees including mainly those who were supposed to pay their taxes within the mentioned period but have not. The group of ineligible assessees however, includes
- Defaulters who filed their returns but did not pay any tax in the first place
- Assessees on whom audit has been called before March 31st or is in progress
It is thus, very important for all those who are willing to seek cover under the scheme to make their moves fast because time is very less. It is also equally important for the same to seek professional assistance to maximize their chances of succeeding in seeking benefits under the provisions.
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