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NOTE:
The Dispute Resolution Scheme, 2008 has been notified vide Chapter VI of the Finance Act, 1994. This compounding scheme has been notified as a one time measure for quick resolution of disputes.
(a) involving small service tax amounts upto Rs 25000; and
(b) involving non-recovery of penalty or interest. However, cases involving non-payment of service tax after having collected the same from client/customer are not included in the Scheme.
To give effect to the provisions of the Scheme:
1. Central Government has notified (notification no. 28/2008 dated 4-6-2008) the Rules and Forms for the purpose of Service Tax Resolution Scheme
2. Issued a circular 102 /5/2008-ST dated 4-6-2008clarified the scope of the scheme with illustrated examples