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Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES)


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Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES)

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Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES)

  1. 1. Voluntary ComplianceEncouragement Scheme, 2013(VCES)-Service tax
  2. 2. OverviewThe Scheme has been introduced by Chapter VI of the FinanceAct, 2013 called ‘Service tax Voluntary ComplianceEncouragement Scheme, 2013.Through the scheme Government has given opportunity toService Industry to settle their Service tax default voluntarily forthe period from 01.10.2007 to 31.12.2012, without any penalactions.
  3. 3. Eligibility Criteria for the SchemeFollowing conditions shall be satisfied for availing the scheme:1) No notice/order/determination under section 72/73/73A ofthe chapter has been issued or made before the 1st day ofMarch, 2013;2) No inquiry or investigation shall be pending on 01.03.2013by way of: Search of premises, Issuance of summons, Requiring production of accounts, documents or otherevidence, An Audit;3) The declaration shall be made on or before 31.12.2013.
  4. 4. ProcedureService Tax Voluntary Compliance Encouragement Rules, 2013,has been notified by Notification No. 10/2013-ST, dated13.05.2013:1) Declaration shall be made in Form VCES-1,2) Designated Authority on receipt of declaration shall issue anacknowledgement in Form VCES-2 within a period of 7working days from the date of receipt of the declaration,3) The CENVAT credit shall not be utilized for the payment oftax dues,4) The designated Authority shall issue an ‘acknowledgementof discharge’ in Form VCES-3. The acknowledgement shallbe issued within a period of 7 working days from the date offurnishing of details of payment of tax dues.
  5. 5. Some Issues1) Where a notice/order/determination has been issued to aperson in respect of any period on any issue, No declarationcan be made on the same issue for any subsequent period.2) If a declarant fails to pay the tax dues, so declared or partthereof up to 30th June, 2014, he shall pay the same on orbefore 31st December, 2014 along with interest for the periodof delay starting from 01st July, 2014.
  6. 6. Conclusive Nature ofAcknowledgement of discharge1) As per sub-section (2) of section 98 of FinanceAct, 2013, Acknowledgement of discharge shall becomeconclusive upon issuance. No matter shall be reopenedthereafter in any proceedings under the chapter before anyauthority or court relating to period covered by suchdeclaration.But, As per section 101 of Finance Act, 2013, where the CCEhas reasons to believe that the declaration so made wassubstantially false, he can take action within a period of 1year from the date of declaration.
  7. 7. Contact usExperts & CharteredAddress: DA-3/1, II Floor,Vikas Marg, Shakarpur,Delhi-110092Contact: 91-971154414291-782727972791-11-45574142Email: expertchartered@gmail.comDisclaimer: Contents, logos and other material provided in the slideare only for knowledge purposes.