New Delhi, May 27 (KNN) It is a carrot and stick policy being adopted by the tax authorities. On instructions from Finance Minister P Chidambaram, those business firms which are under the scanner of the Central Board of Customs and Excise may get a "polite letter" asking them to pay up their tax dues and they would not be called in to appear in person. 
 
The effort is being seen as a carrot and stick. It is sort of a reminder to the alleged tax defaulters that they are under a scanner but at the same time the authorities are willing to let them go if they clear their dues. 
 
Such tactics seem to be working and the Central Government is realising more revenue by this method rather than resorting to arm-twisting. This is especially relevant when the government is hard-pressed for resources in an economy which is slowing and production falling in several key segments.
 
The government wants to contain its fiscal deficit within the budgeted target. 
 
The responsibility of the task of touch-base with the alleged tax defaulters has been left to the Directorate General of Central Excise Intelligence (DGCEI) and Directorate General of Revenue Intelligence (DGRI), media reports suggest.  

The assesses will be given full chance to explain their point of view but they will have to back up with full documents that, however, will be a tall order for the small and medium enterprises and the chartered accountants and tax consultants will have a field day, analysts feel. 

Meanwhile, the government has also launched a media campaign motivating the small businesses to clear their service tax dues and also deposit the tax deducted at source.(KNN)