Provisions relates to Service Tax Voluntary Compliance Encouragement Scheme, 2013
A-Z provisions from the Finance Act, 2012 relates to Service Tax Voluntary Compliance Encouragement Scheme, 2013 (STVCES)
This section lays down the definition of the important phrases used in the scheme. One of the important phrase is ‘taxes due’ which means:
Person who may make declaration of tax dues:
(i) The scheme does not allow certain persons to make declarations. Such list of persons are discussed hereunder:
(ii) Where a declaration has been made by a person on whom:
o Issuance of summons under Section 14 of Central Excise Act, 1944;
o Requiring production of accounts, documents or other evidence or
o An audit has been initiated
Procedure for making declarations and tax dues:
(1) Person shall make declaration to designated authority (DA) before 31st December,13 in Form VCES-1;
(2) DA shall acknowledge Form VCES-1 and issue VCES-2 within 7 days;
(3) Declarant shall on or before 31st December,13 pay not less than 50% and submit proof to DA;
(4) The remaining tax dues shall be paid before 30th June, 14;
(5) The declarant shall pay ST from January, 13 along with interest and above provision does not apply;
(6) The declarant shall furnish DA details of payment made from time to time along with VCES-2;
(7) On furnishing the payment challans, DA shall issue an acknowledgment vide VCES-3.
Immunity from Interest, Penalty and Prosecution:
(1) The declarant shall make payment of tax dues with in specified period and obtain VCES-3 and gets a full immunity from interest, penalty and prosecution;
(2) The declaration made shall be conclusive and no matter shall be reopened therein under any proceedings under this chapter. However, if the declarant has made a false declaration, the case may be reopened as per Section 111.
No refund of amount paid under Scheme:
Any amount paid pursuance of a declaration shall not be refundable under any circumstances.
Taxes dues declared but not paid:
Where the declarant fails to pay the tax dues as declared, the same shall be recovered with interest under the provisions of Section 87 (recovery of amount due to Central Government) of the Finance Act, 1994.
Failure to make declarations:
(1) Where the Commissioner of CE has reasons to believe that the declaration made by declarant is substantially false, he may serve notice on declarant after recording the reasons in writing.
(2) No action can be taken under above sub-section after expiry of one year from the date of declaration.
Notice issued shall be deemed to be issued under Section 73 or 73A and the provision of the said sections shall be applicable.