The finance ministry has received several requests for extending the service tax amnesty scheme beyond the December 31 deadline, but these are likely to be examined only after the scheme draws to a close.
Field officers, meanwhile, are gearing up for a crackdown on service tax defaulters from January 1, 2014. Some players in the services industry in Goa, for example, have informed officers of CBEC that they need more time to pay up if they disclose past dues as the Supreme Court ban on mining iron ore has crippled their ability to pay this year.
Port services in the state saw a contraction of 57% in the April-October period of this fiscal, while mining services shrank 60% and transport of goods contracted 10% in the period from a year ago. VPC Rao, commissioner, Central Excise, Customs and Service Tax, Goa, said representations received from the industry are being forwarded to the finance ministry and that stringent action would be taken on defaulters who do not avail of the VCES.
Under the scheme, the Centre seeks to collect only the tax that is due and not the interest or penalty. The scheme also promises waiver of other penal proceedings. Once the scheme ends, the government intends to strictly enforce the enhanced penal provisions.
