ST return preparers may also file for firms

The self-employed people who will be trained to become service tax return preparers are likely to be allowed to file returns for companies as well as individual service providers.

They are also likely to be paid a fixed sum per return for each new assessee, as against the income-tax return preparers, who get a variable percentage of the tax paid.

The new service tax return preparer scheme was announced in Budget 2008-09 to help service-tax payers and bring in new assessees under the tax net.

The Central Board of Excise and Customs (CBEC) has set up a committee to prepare the broad contours of the scheme. It may start implementing the plan in a month.

The board may give preference to income-tax return preparers as they have been selected through a proper screening process and have some experience.

"Preference may be given to income-tax return preparers to work as service tax return preparers. Thus, they will get an additional source of income and work for the entire year," said a CBEC official.

The income-tax department had trained 3,700 tax return preparers in 2007. It plans to train an additional 5,000 in 2008.

Meanwhile, the board has sought suggestions from all stakeholders, like service providers, manufacturers, traders and trade associations, by April 16 on the scheme.

There are only 1.1 million service tax payers in the country, while the number of personal income tax payers are around 30 million.