CA Abhishek  Malpani

Q. What is the Date of implementation of Service Tax Voluntary Compliance Encouragement Scheme, 2013 ?

After receiving the assent from President of India to the Finance Bill 2013-14.

Q. Scheme to whom it is applicable?    

The person who has not paid the tax dues. Tax Dues means the service tax due or payable under the Chapter or any other amount due or payable under Section 73 A thereof for the period beginning from 1st day of October 2007 to 31st December 2012 including a CESS, leviable thereon under any other ACT for the time being in force but not paid as on 1st Day of March 2013.

Q. Who can make declaration?       

1. Registered Person.

2. To whom no notice or any order under Section 72 & 73A has been issued or made on or before 1st March 2013.

3. Makes the True Declaration.

Q. Who cannot avail the Scheme? 

1.      Person who has not filed ST-3 Returns.

2.         Notice or order issued to him for demanding the duty.

3.         Investigation is in progress.

4.         Audit has been initiated.

5.         Asked to furnish accounts, documents or any evidence.

6.         Who has received the summons.

7.         Who has been served the Notice of Search and Search is undertaken.

8.         Any of above is pending as on 1st March 2013.

Q. How to avail the benefit of the Scheme?         

1.  Make the True Declaration.

2. Do the correct and truthful assessment of Duty, otherwise it would tantamount to false declaration resulting in adjudication without immunity of interest and penalty.

3. The Form and manner will be described by the Department.

4. Designated Authority will acknowledge the same.

5. The declarant will pay minimum 50% amount of tax dues on or before 31st December 2013 and submit the proof of payment to the `Designated Authority.

6. Balance amount of tax to be paid on or before 30th June 2014 and submit the evidence of payment.

7. Declarant has to ensure to pay the service tax on regular basis on due date from 1st January 2014.  In other words, the Declarant should comply all the provisions of service tax on regular basis, otherwise benefit under the scheme will not be granted.

Q. What happens if the dues are not paid in time before 30th June 2014?        

Amount not paid before 30th June 2014, payment can be made on or before 31st December 2014 along with interest at the prescribed rate.  Interest will be calculated from the period 1st July 2014 till the time payment is made fully.

Q. Whether compliance certificate is granted?     

Yes, after furnishing the details of full payment, the designated Authority shall issue & acknowledgement of Discharge of Dues in the prescribed format.

Q. What are the benefits under the Scheme?       

Immunity from penalty, interest and other proceedings.

Q. Whether after getting the Discharge Certificate, any subsequent action is initiated by the Department?                                                                 

No, no matter will be re-opened, thereafter, in any proceedings before any authority or court relating to the period covered under such declaration.  However, if the Commissioner of Central Excise has reason to believe that the declaration is false, then such belief has to be recorded in writing and show-cause-notice will be issued asking to pay the duties along with interest and penalty.  Such findings to be recorded within one year from the date of declaration and the said date will be considered as Relevant Date for the purpose of limitation.

Q. If declaration is made of higher amount and payment is also made of higher amount, whether refund is admissible?                                              


Q. How to remove difficulties?              

Government is empowered to issue clarification for removal of difficulties.

Q. Whether Powers are vested to Government to make the rules?       

Yes, rules prescribing formats and manners will be notified by the Government.

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