Press Esc to close
Wednesday 04 May 2016
News updated at 11:21 AM IST
Weather
Max: 36.2°C
Min : 24.5°C
In Bengaluru
Sunny day

Service tax defaulters under scanner, says Chidambaram

Chennai, Nov 9, 2013, (IANS)
The tax department will act against sectors that are chronic defaulters of service tax while coaxing non-filers of returns to come clean before Dec 31 under a special scheme, Union Finance Minister P.Chidambaram said here Saturday. PTI File Image.

The tax department will act against sectors that are chronic defaulters of service tax while coaxing non-filers of returns to come clean before Dec 31 under a special scheme, Union Finance Minister P.Chidambaram said here Saturday.

Listing sectors like immovable property renters, consultancy, advertising, real estate, transport operators, manpower recruiters and others as chronic defaulters of service tax he warned: "The gaze of the department will fall on these sectors."

Chidambaram said the government has immense data and sources to profile an individual's tax record.

"Out of 17 lakh who registered for payment of service tax only seven lakh pay that tax. Ten lakh do not pay," the minister said at an interactive session on Voluntary Compliance Encouragement Scheme (VCES)-2013.

He said the government has dossiers on economic offenders. It is only due to the limitations of the tax department that they are not being reached.

Chidambaram said the non-filers of service tax returns should take advantage of the scheme that waives interest and other penalties.

Justifying the arrest of 10 people for non-payment of service tax, he said those persons collected over Rs.50 lakh from others and did not remit the same to the government but were using the money for their own purposes.

Chidambaram said the number of service providers has grown but the department is not able to keep pace with it.

Fifteen years after the tax was introduced a large number of service providers are not filing their returns and many have stopped filing.

Chidambaram said the tax:GDP (gross domestic product) ratio and the tax payer base in India is one of the lowest in the world.

The government is targeting service tax revenue of Rs.180,141 crore this fiscal up from Rs.132,498 crore collected in 2012, said Central Board of Excise and Customs chairperson Praveen Mahajan.


Go to Top

Photo Gallery
Pranab Mukherjee shows a silver statue of Sai Baba gifted to him by veteran actor Manoj Kumar...

Pranab Mukherjee shows a silver statue of Sai Baba gifted to him by veteran actor Manoj Kumar...

Policemen arrest TET aspirants for protesting against UP government for their recruitment...

Policemen arrest TET aspirants for protesting against UP government for their recruitment...

A truck loaded with LPG cylinders overturns after the driver lost his control at Ambari area...

A truck loaded with LPG cylinders overturns after the driver lost his control at Ambari area...

A girl arrives to collect water from an almost dried pond at a village near Allahabad...

A girl arrives to collect water from an almost dried pond at a village near Allahabad...

Indian coast guard personnel participate in a mock drill during the National Maritime Search...

Indian coast guard personnel participate in a mock drill during the National Maritime Search...

A hen along with its featherless chicks in Dimapur, Nagaland on Tuesday...

A hen along with its featherless chicks in Dimapur, Nagaland on Tuesday...

Firefighters trying to extinguish a fire at Simhastha Mahakumbh in Ujjain...

Firefighters trying to extinguish a fire at Simhastha Mahakumbh in Ujjain...

Bollywood actor Jacqueline Fernandez with Siddharth Malhotra during a launch event...

Bollywood actor Jacqueline Fernandez with Siddharth Malhotra during a launch event...

Winner of Best Actor award Amitabh Bachchan and Best Actress award Kangna Ranaut...

Winner of Best Actor award Amitabh Bachchan and Best Actress award Kangna Ranaut...

Flames trail Danica Patrick's car after she crashed into Matt Kenseth...

Flames trail Danica Patrick's car after she crashed into Matt Kenseth...