New Delhi, Aug. 8: The government today notified the service tax amnesty scheme announced in the budget, allowing service tax defaulters to declare and pay half of their tax dues by December-end this year without any interest or penalties.
The remaining tax dues may be paid by June-end 2014. In case the business or individual tax-payer is unable to pay the remainder by June, this can be paid by December-end 2014 with interest calculated from July 2014.
The government kicked off a campaign for the tax amnesty measure today by launching a “Frequently asked Questions” booklet on the service tax voluntary compliance encouragement scheme today.
Finance minister P. Chidambaram, who launched the booklet, said, “This is an opportunity to come clean. We think it is an opportune moment to give a once-in-a-life-time opportunity to defaulters to come clean.”
The scheme targets businesses and people who have not paid service tax dues between October 2007 and December 2012 either because of ignorance of law or otherwise.
The minister pointed out that about a million service tax assesses have stopped filing returns and “are in a way defaulters and they are liable to punishment”.