government’s friendly approach to service tax-payers

Thursday, September 23, 2004

The Union Finance Minister, Shri P. Chidambaram in his Budget speech promised a Tax-payer friendly administration of Service Tax. In order to fulfill the said promise in the Budget speech, 6 new Service Tax Commissionerates have been created in the metropolitan cities of Ahmedabad, Bangalore, Chennai, Delhi, Kolkata and Mumbai. These Service Tax Commissionerates will exclusively handle Service Tax matters, which were hitherto looked after by Central Excise Commissionerates. The services of the department have been brought to the door step of the service providers.

Another step taken in this direction is further simplification of the registration procedure. Special camps will be organized throughout the country, including remote places, and registration will be done on the spot. All the necessary forms will be available at such camps and officers will assist the service providers to fill up the forms.

The Finance Minister has also declared that no penal action will be taken against those service providers who get themselves registered before 31st October, 2004 and pay their service tax. This is the last opportunity for registration and payment of service tax without inviting penal action. The declaration regarding value of services will be accepted by the department and no inconvenient questions will be asked about the declaration.

The Finance Minister has impressed upon the service providers to come forward, take advantage of the special camps, register immediately before 31st October, 2004, pay service tax on their taxable services and avoid penal action.