FM releases FAQ on VCES; 1400 defaulters out of 10 lakh file declarations

*FM releases FAQ on VCES; 1400 defaulters out of 10 lakh file declarations*

*NEW DELHI, AUG 08, 2013:* *THE* Union Finance Minister, Mr P. Chidambaram,
released a booklet containing Frequently Asked Questions (FAQ) on Service
Tax Voluntary Compliance Encouragement Scheme, 2013 in New Delhi today in
the presence of Revenue Secretary, Chairperson and other members of Central
Board of Excise & Customs and media.

He also released a Logo of Service Tax Voluntary Compliance Encouragement
Scheme, 2013 on the occasion. Speaking at the Event, Mr Chidambaram said
that the scheme offering "no penalty, no interest", provides one time
opportunity to the defaulters to come clean. He further said that over 10
lakhs defaulters have been identified. The Minister said that 1400
defaulters have already filed their declarations amounting to Rs 650
crores. The Minister hoped that the scheme will result in substantial
disclosure by non-filers. The Minister exhorted the service tax assessees
to make use of this golden opportunity and pay their tax dues to avail
immunity from interest, penalty and other proceedings. He further said that
the FAQs released today are based on inputs received from various agencies
and quarters and would be of immense use for the compliers.

Service Tax Voluntary Compliance Encouragement Scheme (VCES) announced by
the Finance Minister in his Budget speech has come into effect on 10 th
May, 2013. The objective of the scheme is to encourage disclosure of Tax
dues and compliance of Service Tax law by the persons who have not paid
service tax dues for the period from Oct, 2007 to Dec, 2012, either on
account of ignorance of law or otherwise. On payment of the tax dues
relating to the said period there will be complete waiver of interest,
penalty and other proceedings/ consequences.

The Frequently Asked Questions (FAQ) booklet on VCES contains
clarifications on doubts and queries about the scheme. For ease of
reference, the statutory provisions and the VCES Rules containing the VCES
forms are also included in the booklet.

(*See Circular 170<http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/sercir.htm>
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