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SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013

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INTRODUCTION

Budget 2013 has provided “Amnesty Scheme – Service tax Voluntary Compliance Encouragement Scheme 2013” The Purpose of this scheme is to encourage voluntary compliance and broaden the taxbase

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PERSONS ELIGIBLE TO AVAIL BENEFIT OF THE SCHEME

Any person who has not paid the service taxwho has not filed the Service tax returns who has stopped filing their Service tax returnsWho has not registered with the service tax departmentService Providers who have not disclosed their full liability in the return filed by them

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PERIOD

Any assessee registered/unregistered, who has not paid tax dues for the period between October 2007 to December 2012 can avail the benefit of the scheme

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PERSONS NOT ELIGIBLE TO AVAIL BENEFIT OF THE SCHEME

Any assessee - Who has filed Service tax return and disclosed true liability, but has not paid the tax

Who has received a notice / order for any period or any issue, he cannot apply for the tax dues on the same issue for subsequent period

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PERSONS NOT ELIGIBLE TO AVAIL BENEFIT OF THE SCHEME

Any assessee – Against whom an inquiry or investigation

In respect of a service tax not levied or not paid or short levied or short paid has been initiated By way of Search of the premisesIssuance of summonsRequiring production of accounts, documents or other evidence Initiation of an Audit and same is pending as on 1st March 2013

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PROCEDURE

Step – 1: If not registered , get registration

Step -2:Make a declaration in VCES-1 on or before 31st December, 2013

Step – 3:The service tax department to acknowledge receipt of application in Form VCES-2within 7 days

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PROCEDURE

Step – 4: Payment At least 50% of the taxes should be paid on or before 31st December, 2013

Remaining taxes are required to be paid on or before 30th June, 2014.

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PROCEDURE

Step – 4: PaymentEntire payment is to be made by 31st December, 2014 alongwith with interest to be calculated w.e.f 1st July, 2014. Only immunity from penalty & prosecution

The CENVAT credit shall not be utilised for payment of tax dues under the Scheme

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PROCEDURE

Step – 5: On submission of details of full payment of service tax and interest theeron, if applicable, the service tax department shal issue an acknowledgement in Form No VCES – 3 within 7 days

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BENEFITS OF AVAILING THE SCHEME

Benefits of availing the schemeWaiver from Interest, penalty and other proceedings If the voluntary declarations are true and if no proceedings are initiated within one year, the declaration shall not be re-opened

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THINGS TO KEEP IN MIND

Any amount paid under the scheme shall not be refundable If declarant fails to pay amount declared, same shall be recovered from him as per the normal provisionsIf Declarant has made a substantial false declaration, proceedings may be initiated against him

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FAQs

Q. Mr. A has not obtained Service Tax Registration. Can he avail the benefit of VCES?

A. Yes. He can avail the benefit. Firstly, he has to obtain Service Tax Registration. He will also get immunity from penalty and other proceedings.

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FAQs

Q. XYZ, a partnership firm, has not filed his Service tax return from October 2009. Can they get waiver from payment of penalty?

A. Yes. Besides waiver from interest and penalty, immunity would also be available from any other proceedings.

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Thank you