Government warns indirect tax evaders, boosts collections
New Delhi- In an action to set rigid rules for people who have not yet paid their indirect taxes, the finance ministry has decided to take stern measures through the stepping up of compliance and will further generate extra revenue through the collection before the next financial year arrives.
In a warning by the revenue secretary Sumit Bose, individuals who have not paid their excise duties should be prepared to face the consequences which will eventually include the provisional attachment of property, suspension of cenvat credit, arrest, prosecution, 100 percent penalty and interest.
The officials have been very alert for any such violators and have requested all the defaulters to pay their property taxes by availing the benefit of reduced penalty. In November, the amount of indirect taxes increased up to 17.2 percent with Rs. 36,081 crore which was quite less when compared to the annual growth target of 27 percent. This apparently contributed to the government’s problem of meeting its revised target of fiscal deficit at 5.3 percent of the GDP. A fiscal deficit of 5.1 percent of the GDP was pegged by the budget in the present year.
Bose also stated that a large number of central excise assesses eradicated goods clandestinely due to the government even without registration, non payment of the central excise duties or misuse of cenvat credit. He further said that the present era with electronic availability pertaining the transactional and financial data from an array of sources, it is really not difficult for the tax authorities to get hold of the defaulters who have not paid taxes for their properties in Delhi.
Further it was revealed that most of the service providers have been collecting tax from the payers but have not been giving it to the government. Hence Bose warned such service providers that they will not only have to pay the service tax but will also be liable to pay the interest and the penalty. In some cases they will also be prosecuted. There were more than half of the service providers who were not filing their returns and others were not even registered.
From July 2012, the services have become taxable by barring the services who are defaulters or are in the violators list. The authorities also addressed the importers and exporters against over or under invoicing and misdeclaration.
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