The finance bill 2013 has announced the voluntary compliance scheme to be introduced to encourage voluntary compliance and broaden the tax base. However the actual rules and scheme were to be announced later. With the passing of bill on 10.05.2013, central government on 13.05.2013 has come up with the scheme and rules there under. Here is the summary of provisions of same.
Provided Legally backed by: Section 94 to 104 of Chapter VI of Finance Act, 2013.
Purpose of this scheme: To encourage voluntary compliance and broaden the tax base.
The notification no. 10/2013 dt. 13.05.2013 brings into action the proposed Amnesty Scheme, now to be called as “Voluntary Compliance Encouragement Rules, 2013″.
The disclosure period in the scheme is from October, 2007 to December, 2012.
This scheme will enable the following person to take the benefit of this scheme:
However, following person are not eligible to take the benefit of this scheme:
Steps or Procedure of availing the scheme:
– 50% of tax dues by 31st,December, 2013,
– rest 50% by 30thJune, 2014.
5. On full payment of taxes, acknowledgement of discharge in VCES –3 shall be issued with 7 working days from the date of furnishing of details of tax dues in full along with.
Benefit of availing the scheme:
Section 101-Failure to make true declaration.
(1)Where the CCE has reasons to believe that the declaration made by a declarant was substantially false , he may, for reasons to be recorded in writing, serve notice on the declarant.
(2)No action shall be taken after the expiry of one year from the date of declaration. (3)The show cause notice issued under sub-section (1) shall be deemed to have been issued u/s73, or as the case may be, u/s73A of the Chapter and the provisions of the Chapter shall accordingly apply.
Compiled by: CA Deepak Aggarwal
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