This refers to the recently envisaged provision in the Budget to give exemption from penalty or interest payments to assessees who have not filed return, or not remitted collection of service tax, or have received no notice from service tax authorities from 2010 onwards. This benefit is, however, not available if the assessee has received a notice from the department, or furnished details to the authorities about the service tax due. This is patently irrational and requires an urgent review. The rule of equity demands that this facility be extended to all assessees. Otherwise, it would mean that those who intentionally wanted to avoid liabilities will benefit, while a bona fide assessee who had partially paid taxes or furnished details is penalised. Moreover, the liability to pay the service tax should be on a cash basis, i.e. immediately on the collection of the amount, and not on mercantile (billing) basis. This is because every business has enormous uncollected amounts (from sundry debtors).
C V Balakrishnan Banglaore
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