Starting from 1st July, the Goods and services tax will be applicable and in return will demand a list of strict compliance. The government will be making a round of inspections and compliance rules to make sure no taxpayer evade the taxes along with proper follow up with the compliance. Just for the information, business units below the turnover limit of 20 lakh or less don’t require to be registered under the GST.
While many services are currently exempted from the service tax like religious travel, healthcare, education and skill development with other 60 services. In more concerned states like Haryana, it is now not feasible to evade taxes there as the department of tax and excise will be keeping a strict vigilance over the trader’s transactions along with the sales and purchase of the goods.
It is now assured from the government that tax evading practices and deliberately wrong insertion of tax details will lead to strict legal proceedings while hiding facts or paying a lesser amount of tax will also make a strict case towards the tax paying entity. It is speculated that if the matter is disclosed by the tax department, the taxpayer has to answer by a show cause notice in which he will be liable to stolen tax along with the interest to the department under the section-50.
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The tax evader will be given a time period of 3 months in order to pay the amount, and if any trader has fulfilled the whole amount of tax then he will be called for a thorough inspection of the tax related documents in front of the concerned officials. The trader can also submit the evaded tax along with 15 percent of interest before getting the Summon in order to avoid any consequences.
