Service Tax - Exit - Cancellation more difficult than Registration

Dear Sir,

This is simplification of process? getting registrations are "mission impossible" since begining and surrender is not possible. This is one of the reasons to avoid tax itself rather to pay?

You pay "exces tax" by mistake or eligible for refund on accosunt of any provision (exports, exemptions etc)- again mission impossible? see what is happening to the service exporters (IT services, R & D services etc)who accumulate cenvat credit and refunds are simply not granted. Reason as mentioned in the heading itself - going rates for all kind of refunds are fixed - which could be anywhere from 3% to 15%). Bangalore has the distinction of having highest rate - may be most of the service exporters are there. Else they never find any nexus of input services with export of services besides other "VALID" reasons to deny the refund.

SAD refunds are also in the same category.

Third is the EA 2000 audit - whioch by policy has to be done based on the risk review besides thresold limits. The limits were fixed 15 years ago - and still remains at same level. Risk review is never done at least for fixing this audit. This is evident from the intimation letters sent to assessees. This letter is issued mechanically without considering whether the information saught would actually be available or applicable to a particular assessee. Then seek the information like copy of returns for last few years, copy of registration, and many other such documents which are available with the department online in ACES - if they actually do the risk review then at least such information/documents would not be required again and again each year and where they keep all these PAPERS - earth (place) is limited so is the paper and CBEC Audit wing is wasting both without much purpose?

Quality of audit is also evident from the SCN which follows the audits. This happens when the "RECONCILIATION" is not done properly - else the paras are decided with mutual "understanding" of the parties along with the agreed amount to be reversed and PAID.

One thing is certain that the babus love papers with and without the picture of our beloved BAPU.

Arbind Aggarwal 28/10/2014