Vces

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 If an assessee has not discharged part of his liability and also not filed returns, would he be eligible to claim immunity under VCES and under which clause.
Thanks in advance

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

30 September 2013 When the scheme was announced, it was assumed that the same would be applicable only to existing assessees in default as a phrase was used while announcing the scheme i.e. “stop filers, non filers and persons making untrue disclosure”.

However, Rule 3 of the Service Tax Voluntary Compliance Encouragement Rules 2013 states that any person who wishes to make a declaration in pursuance of this scheme and is not already registered, shall first get himself registered under Rule 4 of the Service Tax Rules 1994.

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2013 My query is like this:
Suppose an assessee has a total tax liability of Rs. 1100,out of which he has already paid Rs. 1000. Balance of Rs. 100 is now due for the period covered by VCES. Returns have also not been filed would such case be eligible for immunity from VCES? Under which rule/clause?

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2013 Would this constitute tax dues under VCES?

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

01 October 2013 I don't think it will cover under VCES scheme...

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2013 In the eligibility of the scheme reference has been made to S. 73A. Would this case not fall undid section

mehulmukati

mehulmukati (Expert)
Follow

01 October 2013 Yes, the assessee can file under the VCES and claim the benefits.

However do note that under the VCES no CENVAT credit can be claimed. Hence proportionate credit claimed earlier may be disallowed and the liability may be higher to that extent.

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2013 There is no reversal of cenvat credit. In case that there would be total immunity subject to payment of balance tax representing tax dues u/s 73A. i hope my understanding is correct.

Upgrade to CAclubindia Pro. Subscribe Now!