 "Concerns on service tax voluntary compliance scheme to be addressed: Bose")
Revenue Secretary Sumit Bose today said concerns of the industry relating to Service Tax Voluntary Compliance Encouragement Scheme (VCES) 2013 will be duly addressed and the necessary clarification, wherever required, will be issued at the earliest.
Bose was addressing the representatives of CII, FICCI, PHD Chambers of Commerce, Associated Chambers of Commerce (ASSOCHAM) and Institute of Charted Accountants of India (ICAI).
Bose further said that service sector contributes about 65% of the GDP but the number of service tax payers is quite less. Therefore, this scheme was launched to bridge this gap and allow defaulting persons and companies to disclose their tax liabilities and file their service tax returns.
The representatives of the trade industry explained their concern which mainly included clarity regarding initiation of audit, the eligibility criteria under the scheme and other clarifications. Some of the representatives suggested that a negative list of all those categories who are not eligible under this scheme may be prepared and circulated by the department so that all concerned may know in advance whether they can avail the benefit under VCES 2013 or not.
Another suggestion was to make a provision for an opportunity for review within the department rather than taking any other legal course which is time consuming and expensive.
Bose was addressing the representatives of CII, FICCI, PHD Chambers of Commerce, Associated Chambers of Commerce (ASSOCHAM) and Institute of Charted Accountants of India (ICAI).
Bose further said that service sector contributes about 65% of the GDP but the number of service tax payers is quite less. Therefore, this scheme was launched to bridge this gap and allow defaulting persons and companies to disclose their tax liabilities and file their service tax returns.
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He asked the representatives of the industry to ask their members to avail the benefits under VCES 2013 and pay their due taxes and avoid interest, penalty and prosecution under Service Tax laws.
The representatives of the trade industry explained their concern which mainly included clarity regarding initiation of audit, the eligibility criteria under the scheme and other clarifications. Some of the representatives suggested that a negative list of all those categories who are not eligible under this scheme may be prepared and circulated by the department so that all concerned may know in advance whether they can avail the benefit under VCES 2013 or not.
Another suggestion was to make a provision for an opportunity for review within the department rather than taking any other legal course which is time consuming and expensive.