Amnesty Scheme -Service Tax Voluntary Compliance Encouragement Scheme, 2013

BY CA Manoj Kohli 1st March 2013 To encourage voluntary compliance
and broaden the tax base, one time Amnesty Scheme has been introduced
by Finance Bill, 2013 called as “Service Tax Voluntary Compliance
Encouragement Scheme, 2013 by way of:

•a. waiver of interest and penalty; and

•b. immunity from prosecution,

The essence of scheme will be that to get complete waiver from
interest and penalty, assessee shall make a declaration about his tax
dues and shall pay not less than fifty per cent of the tax dues so
declared along with submission of proof of such payment to the
designated authority on or before the 31st day of December, 2013.
Balance of the tax due declared but not paid shall be required to be
paid by the declarant on or before the 30th day of June, 2014.

However, in case a declarant fails to comply with the time limit as
mentioned above but pays the same on or before 31.12.2014, interest
shall be payable only for the period of delay as starting from

This scheme will be benefited to the stop filers, non-filers or
non-registrants or service providers (who have not disclosed true
liability in the returns filed by them during the period from October
2007 to December 2012) who pay the “tax dues


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