Corruption in Service Tax - Addl Inputs

Below are the key solutions to issues related to Corruption in Service Tax. Kindly review and share any additional inputs that you have.

We look forward to your inputs and will soon be making a submission to key stakeholders requesting actions!
Transparency International India

Corruption in Service Tax – Solutions

1. The service tax registration process should be made online
2. The monthly service tax filing process should also be made completely online
3. The documentation required to apply for service tax should be decreased to a bare minimum
4. The errors and loopholes in filing service tax returns should be plugged
5. A helpdesk should be started where people could call in to get answers to their queries about filing a service tax return
6. Promotional videos should be made to educate people on how to register for service tax and to file a return
7. The inspectors should be asked to file a detailed report on every visit they make to a business. This would help in reducing corruption
8. The service tax department website should be simplified and it should be ensured that all the rules and regulations are easily understandable
9. The entire department should be technologically upgraded through systems and trainings
10. Service tax department should create a circle where citizen/business queries can be answered and any challenges faced reported
11. Inspectors should be made accountable for their decisions and actions
12. Service tax billing machine should be connected to the seller's bank account
13. Inspectors should be asked to report every visit that they make to a business with a reason to visit.

Corruption in Service Tax - Root Causes

1. The online registration of service tax is complicated
2. There are a lot of middle men involved in the service tax work
3. The service tax department website is not professionally managed
4. The service tax department does not have the technological capability to find and correct the errors automatically
5. There is a lot of human interaction required in applying service tax number or filing a return
6. Service tax inspectors have a lot of authority and very less accountability
7. There is no fool proof system to ensure that 100% of service tax recovered by the service providers and the business houses is deposited with the government
8. Purposely names, addresses etc. are entered wrongly so that you run after them with affidavit, form filling etc.

Corruption in Service Tax - Key Issues

1. Service Tax registration process is hard and getting it done off line requires bribery
2. Errors in service tax returns exist for no valid reasons
3. They don’t correct errors and ask return filers to resubmit revised return and ask for bribes
4. Department has boys running asking for bribe to get registration formalities done
5. Service tax inspectors also collude with service provider companies (large and small) directly or through middlemen/consultants and take bribes to overlook their service tax errors
6. Even if a businessman is caught in the service tax department’s net, he can easily get away by paying bribes. more  

View all 53 comments Below 53 comments
Punish those who are corrupt. more  
Now that GST is coming will it become redundant? more  
You visit a restaurant having a.c and non - a.c and you have to pay service tax on the food served in non a.c areas on par with a.c. customers though the tax is meant a.c customers.The reason believe it or not i.e., same kitchen and same premises.this is only a fraction of a worst act exploiting illiterate citizens. more  
Termination for open N shut cases, in all govt. dept's. or waste of time in suggestions. lakhs of open N shut cases pending is it not waste of TAX money by paying half salary. more  
Bharatiya Janata 36Type Taxes deti h .Tax ese ho collection jyada expense kam ho Janta ko pareshan n kiya jaye.ese tax ho .one Bharat one Tax ho GST Service Tax Pura Bharat tax deta h On 30 Jul 2016 03:33, "Transparency Intl India" < support@localcirclesmail.com> wrote: more  
Post a Comment

Related Posts

    • Zee Business cheated people

      A quick summary of the Sebi interim order on Zee business 'experts' these experts would give stock recommendations and make money with the stock move. Never ever buy stocks based on someone recomme...

      By Rajani Thakur
      /
    • By Anonymous Circle member
      /
    • World Cup tickets

      The sale of tickets this World Cup will be one of the biggest scams if investigated! It says SOLD everywhere but there’s obviously no full house as we see it on TV. Wh...

      By Rajesh Suri
      /
    • Govts position on black marketing of world cup tickets

      14 oct Ahmedabad, IND v PAK VIP box tickets .. Black market price 1.5 Lakhs !!! Is the Govt permitting these black marketers or they are ok to operate. Where to complain?

      By Dinesh Shah
      /
    • Doctors that own pharmacy and lab

      NMC says Doctors cannot receive cuts and commissions from labs and chemists. Howevwr I have noticed that in many cases these are opened by Doctora directly or at an arms length operated by a relati...

      By Sudesh Rai
      /
    • Over 2 lakhs crores written off by ba ks

      Rs.2,09,144 lakh crore loans written off by banks in just 1 year. Over 2 lakh crore. Let that sink in But that's not all Remember how the previous govt used to be c...

      By Ruchika L Maheshwari
      /
    • 20000 per hectare was the bribe rate for re-survey of land

      Gujarat ACB traps District Inspect of Land Record. I suggest district inspector of land records across India must be investigated in a special drive and 90% plus would be corrupt. Also this way the...

      By Dinesh Shah
      /
    • Corruption through kin

      So Logix group transferred 261 flats to Mayawati’s brother and his wife at a 45% discount. It was likely bribe to be paid to madamji for doing something illegal be it allotting pub...

      By Rajani Thakur
      /
    • Request A gazette that puts notification on discontinuation of any car on public domain

      Dear Jeep India, You had plans to discontinue the Jeep Compass Petrol models as on May 2023, and in March 2023 you aggressively sale pitched me by sending your Sales Executive to my hous...

      By Tarit MOHAN
      /
    • Karnataka corruption brought the Govt down

      Corruption was the biggest issue in Karnataka. And the top leadership did nothing to stop it. 40% proved costly. This should be a lesson for 2024. No amount of roadshows can win elections if the tr...

      By SN Mittal
      /
    • Political Funding Tax Evasion modus operandi

      Heard of a tax evasion scheme. Person donates, say, ₹10L to a political party. Gets ~35% IT benefit (for taxable income >50L). The political party returns back ₹9L. Political party converts it's...

      By Rajesh Suri
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)