Service Tax Voluntary Compliance Encouragement Scheme(VCES)
broaden the tax base Are honest tax payers put at a
disadvantage?
Slide 2
Statistics Losses over Rs 9,872 crore - April- December, 2012.
Recovery Over Rs 1,969 crore realised from 4,133 defaulters.
Extensive publicity about the pending service tax liability Service
Tax collection - Rs 132000 crore against expected 132697 crore for
2012-13. Proposed Service Tax Collection for the current fiscal
Rs180141crore
Slide 3
Extract of Budget Speech Registered Assesses17 Lakh Return
Filers 7Lakh The FM Proposed VCES to Collect A Reasonable sum of
Money From The Defaulters. Immunity from Interest, Penalty &
Prosecution
Slide 4
Constitutional Validity The presidential assent was received on
10 th May 2013. Thereafter The CBEC, vide notification no. 10/2013
ST dated 13 May 2013, notified the Service Tax Voluntary Compliance
Encouragement Rules, 2013 The VCE Scheme was brought into effect
upon enactment of the Finance Bill, 2013.
Slide 5
What is VCES? An Amnesty Scheme To Broaden the Tax Base To give
incentive to defaulting persons to voluntarily Pay tax dues To know
the Probable Defaulters Period Involved 1/10/2007 to
31/12/2012
Slide 6
Few Salient Features Of VCES For Tax Dues from January 2013
onwards-Benefits Of VCES Cannot Be Availed If Declared once-
Payment Is Must as Per Proposed Section 100 of The Finance Act,
2013 No Refunds
Slide 7
How and when the liabilities have to be paid?
Slide 8
What are the Immunities Available? Waiver Of Interest Waiver Of
Penalty Free From Any Prosecution
Slide 9
Reason behind the Amnesty Golden Chance For those who wants to
Make Good their Wrong Done For 10 lakh Probable Defaulters To
Introduce a Tax Generation Instrument Large scale
non-compliance
Slide 10
Who Is Eligible to get Immune? Stop-filers of returns;
Non-filers of returns; Non-registrants; Service providers who have
not disclosed true liability in the returns filed during the period
of scheme Who Is Not Eligible? Assessees disclosing true liability
in service tax returns Assessees in receipt of Show Cause Notice /
Order of Determination u/s 72, 73 or 73A of Finance Act, 1994
Assessees being audited under the provisions of Finance Act, 1994
and such audit is pending as on 1 March 2013 Assessees against whom
inquiry / investigation has been initiated and is pending as on 1
March 2013:
Slide 11
Procedure For Availing Amnesty Submit Declaration in Form
VCES-1 with Designated Authority a Half Yearly Calculation Sheet is
also to be submitted a separate calculation sheet for each category
of service. The calculation sheets are to be in the format of the
service tax return After submission of form VCES 1, the Designated
Authority shall issue an acknowledgement in form VCES 2 within
seven working days. The acknowledgement does not certify the
correctness of the declaration furnished by the assesse. proof of
payment periodically along with copy of acknowledgement (Form VCES
2) is also to be furnished Upon furnishing of the same in full, the
Designated Authority will issue an Acknowledgement of Discharge in
form VCES 3 within seven working days To make a Declaration, First
You needs to Get registered with the dpartment.
Slide 12
Inherent Flaws Undertaking given by Mr. P.Chidambaram To The
Honble Supreme court Cumbersome Procedure of availing the befits of
the Scheme. Unawareness among the semi urban & rural areas
about Service Tax Laws.
Slide 13
Broadening of Countrys Tax Base The Amnesty Scheme is a welcome
move by the Finance Ministry to increase the tax base and, thereby,
increasing service tax collections. The expected collection from
the scheme is Rs. 35000 Crore
Slide 14
Conclusion YES NO Are Honest Tax Payers at A Disadvantage?
Slide 15
Bibliography www.Indiabudget.nic.in www.Servicetax.gov.in
www.Google.com Websites of Various Reputed CA Firms Various Blogs
Authenticate Blogs I would Like to add Few Names Who helped me in
making This Presentation: CA Yogita Anand Maam CA Pankaj Jain Isha
Chitkara & Tanvi Jain
Slide 16
Elocutionist: Govind Rai Garg Reg. No. : NRO0302415