VCES - Voluntary pay your Service tax and
get benefits.
Period:
1st October 2007 to 31st December
2012
ü VCES
AVAILABLE TO:
Ø The
person
-
Who has not received notice or order of determination u/s 72, 73 or 73A on or
before 1st march 2013 is eligible
under the scheme.
- Against him If any inquiry, investigation or audit has been initiated after 1st march, he can avail the scheme.
ü VCES
NOT AVAILABLE TO:
Ø The
Person :
-
Who has filed service tax
return but does not pay tax,
he will be not eligible for the scheme.
- Against him If any inquiry, investigation or audit has been initiated and pending
as on 1st march 13,
ü VCES
PARTIAL AVAILABLE TO:
Ø The
Person :
-
Against him If any
notice or order of determination has been issued for any period between October
07 to December 12, declaration cannot be made on same issue for any subsequent period. But if show cause notice has been issued prior to October
07, declaration can be made on same issue.
ü
Payment of tax:
-
Up to 31stdecember,
2013 : minimum 50% tax payment else not eligible for the scheme
-
Up to 30th June , 2014 : balance without interest
-
Up to 31st December 2014 : balance with interest
(all payments without
penalty and prosecution)
ü
Other major points
:
·
If registration under service tax has not obtained, the person will be required
to take registration before making such declaration. He will get immunity from penalty for not having
registration.
·
If show cause notice has been received by a taxpayer for
particular period during October 07 to December 12, he can file declaration for period not covered by notice.
·
The Tax Payer will be
ineligible if an inquiry, investigation or for audit which is pending as on 1st march 13. A notice for mere general communication for
taxpayers’ business by department will not make him ineligible for scheme..
·
The eligibility for
scheme will be determined separately for each unit If taxpayer has two units
with separate service tax registration
number,
·
For tax dues
concerning an issue which is not a part of audit para the declaration can be made by
the tax payer.
·
If tax dues are paid by
a person but he has not filed
return, he is not eligible for the scheme to avoid penalty for late
return filling.
·
If tax dues for part
of the period of the scheme has been paid and same person has paid other part
of the tax dues under VCES scheme, he will be entitled for immunity from
interest and penalty on tax dues which he has paid under scheme. If a person
has paid 5 lacs for the period 1stOctober 07 to 31st December 11 on 1st jan 2013 and 20 lacs on 31st august 2013 under VCES scheme for
the period 1st January 12 to 31st December 12. He will be entitled for immunity
from interest and penalty for 20 lacs which he has paid under VCES.
·
The Taxpayer can amend
the declaration and correct it If there is any mistake in declaration and submit it before 31st December 2013.
·
The Declaration can be rejected after giving opportunity to
taxpayer if authority finds declaration wrong and thereafter show cause notice for the tax dues may be issued by
the authority.
·
Tax under VCES
should be paid in cash.
