TEAM HERALD
PANJIM: Out of the 12,000 entrepreneurs from service sector, about 50% have failed to pay their taxes, the Commissioner of Central Excise and Customs said Friday.
As per a scheme, taxes can be paid in two equal installments of 50% each, the first by December 31 and the second by June 2014 with a waiver of interest, penalty and prosecution.
In this regard, the commissionerate has called for all service providers in the state to file declarations for tax due before December 31, 2013 through their Voluntary Compliance Encouragement Scheme (VCES).
Having identified 5,000- 6,000 defaulters, the commissionerate expects to collect Rs 50 crore in service tax revenue through the scheme.
“The commissionerate is watching the situation and is determined to strike at defaulters if they do not avail of VCES now,” the Commissioner V P C Rao told the media, adding that the mining halt and ban on export of iron ore has affected service tax collection to the tune of Rs 37 crore in the current year, he said.
Restaurants and accommodation, builders, beauty parlours, inland water transport services including barges and rents of immovable properties are some of the areas that have been identified as the biggest defaulters.
This year the commissionerate’s revenue is trailing behind last year’s revenue by Rs 8 crore ~ up to September 2013. The commissionerate hopes to achieve a 20% increase over the last year’s collection of Rs 426 crore to reach Rs 500 crore by March 31, 2014.
Though the scheme that was launched in May was publicized through SMSs, banners, pamphlets as well as advertisements, the response, was lukewarm, Rao said. “So far the commissionerate has received about 20 declarations of about Rs 3.50 crore tax liabilities. This is totally discouraging,” he said. Plans are also underway to hold seminars at various locations over the state to create awareness.
Ten teams with the sole aim of verifying these service providers have been constituted and will be moving in the state
