Service Tax Voluntary Compliance Encouragement Scheme, 2013 (STVCES) has been introduced by the Finance Act, 2013 to encourage the voluntary compliance and broaden the tax base in Service Tax. By this Notification and Circular, the “Service Tax Voluntary Compliance Encouragement Rules, 2013” have been introduced and clarifications have been issued.
Gist of the Rules is as under:-
(1) Every person who wishes to make a declaration under the Scheme shall take the registration, if not already registered;
(2) The declaration shall be made in respect of Tax Dues under the Scheme in Form VCES-1;
(3) Designated Authority shall issue an acknowledgment in Form VCES-2 within a period of seven working days;
(4) The tax dues shall be paid to the credit of Central Government. However, CENVAT Credit cannot be utilised for payment of service tax under this Scheme;
(5) Designated Authority shall issue an acknowledgment of discharge in Form VCES-3, within a period of seven days from the date of furnishing of details of payment of tax dues in full along with interest, if any.
(6) Beside interest and penalty, immunity would also be available from any other proceeding under the Finance Act, 1994 and Rules made thereunder.
(7) Tax dues in respect of which any show cause notice or order of determination u/s. 72, section 73 or section 73A has been issued or which pertains to the same issue for the subsequent period are excluded from the ambit of this Scheme.
VAT UPDATE
Furnishing Cloth exempted in the course of intere state sale :
CST Notification No. CST /1413/CR 48/Taxation -1 . Dated 30.03.2013
By this notification, sale of furnishing cloth notified under Schedule Entry C-101 of MVAT Act, 2002 , made exempt in the course of interstate sale from CST with effect from 01-04-2013.
