Clarification on VCES
A new Circular regarding VCES has
been issued to clarify the doubts raised relating to VCES. The clarifications
are mentioned below:
a) If an inquiry, investigation or
audit, pending as on 1.3.2013 was being carried out for the part period i.e.
2008-2011, benefit of VCES would be eligible in respect of 'tax dues' for the
period not covered by the inquiry, investigation or audit i.e. for the year
2012.
b) If an inquiry or investigation,
pending as on 1.3.2013 was in respect of a specific issue, say renting of
immovable property, benefit of VCES would be eligible in respect of 'tax dues'
concerning any other issue in respect of which no inquiry or investigation was
pending as on 1.3.2013.
c) In case designated authority
has reasons to believe that the declaration filed by declarant is covered by
section 106(2), a notice of intention to reject the declaration will be given
to the declarant within 30 days from the date of filing of declaration stating
reasons of rejection to give so as an opportunity of being heard before the
rejection.
d) The designated authority may
take a view on merit on the basis of facts and circumstances of each case as to
whether the inquiry is of roving nature or whether the provisions of section
106 (2) are to be attracted.
e) Benefit of scheme would be
available for payment of tax made after 10.05.2013 even though the declaration
under the scheme has been made later on.
f) Benefit of scheme would not be
available for waiver from penalty and other proceedings where service tax
pertaining to the scheme along with interest has already been paid by the
assessee.
[Notification No. 174/9/2013-ST dated
25.11.2013]
Union Finance Minister Chidambaram
warned the service tax evaders saying the current amnesty scheme closes by
month-end and that no further chances will be provided to comply with the tax
regulations. Saying that service providers cannot see a fair scheme than
VCES, the finance minister said, "No interest, no penalty, no prosecution.
I think this is a generous scheme. So utilize it and take advantage of it.
The last date of
depositing at least 50% of the declared dues under VCES is 31st December, 2013.
Rahul Jain
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