Section 94 - Settlement of tax payment.

Settlement of tax payment: fixed reduced rates apply for service tax, interest and penalties under the Scheme.

The Scheme allows declarations of service tax arrears to the designated authority between 1 July and 30 September, 2008, and fixes reduced settlement rates: service tax components (subject to a specified upper limit) are payable at fifty per cent; interest and/or penalties arising from adjudication are payable at twenty-five per cent of such arrear; for arrears arising from show cause or demand notices interest and/or penalties are payable at twenty-five per cent of the maximum penalty leviable and interest, with a proviso treating the service tax amount as penalty where penalty would exceed it.