The Central Board of Excise and Customs (CBEC) has started
tightening the noose around tax evaders. As per the official sources, this
year, the department intends to profile banking and financial services, port
services and business auxiliary services to pinpoint taxability of various
components to enforce compliance. More services will be profiled in subsequent
year.
Besides, the department is also strengthening audit for
picking up more cases where credit claims are unusually high If also intends to
encourage e-filing of service tax returns.
Service tax collections grew by over 34 per cent in 2007-08
and are projected to grow 27 per cent to Rs. 64,460 crore in 2008-09. Finance
Ministry is hopeful to increase the collection if evasion of tax is checked.
For putting a check on tax evasion, the CBEC is also
planning to divert excess staff from the central excise to the service tax
wings. Central excise collections are falling short of the target year after
year and the department is now focusing on service tax, which may become the
largest component of indirect taxes in four to five years.
CBEC has also decided to study service lax collection trends
category wise and open suspect cases for scrutiny.
To deal with issues like tax collections not deposited with
the exchequer, the department will collect data from government departments and
public sector undertakings.
The department has also launched a computerization drive to
replace the age-old systems and network all offices for better taxpayer
services. As per the official statistics, there are about 1.05 million
registered service tax payers, of which nearly 50 per cent are active.
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