2. Service Tax and Related Compliances
This presentation covers -
• Overview of Service Tax – Past and Present
• Specific provisions / exemptions relating to event
management / sponsorship services
• Place of Provision of Services Rules, 2012
• Reverse Charge Mechanism
• Cenvat credit
3. 3
Indian Economy – An Overview
Indian economy is the 11th largest economy in the world
and the third fastest growing even in today‘s recession,
after China and Indonesia (Present growth rate around
5.5%)
World is presently facing recession-II but Indian
economy is still a growth economy
Inflation –food, lifestyle
Agriculture, services and industry are the major sectors
of Indian economy. Contribution of different sectors in
March, 2012 was :
Agriculture 19%
Services 59%
Industry 22%
(likely to be @ 64% in March, 2013)
5. Indian GDP to grow about 5 percent in 2012-13 and growth
expected at 6.1-6.7 percent in 2013-14
Tax Policy – clarity in tax Laws, stable tax regime, non-adversarial
tax administration, fair mechanism for dispute resolution,
independent judiciary
Need to raise tax – GDP ratio which is presently around 6-7
percent.
Service Tax contributes 11.50 percent of the gross tax revenue
Service sector growth @ 9%, much higher than the GDP growth
itself.
Contribution of services sector in GDP at 64% including
construction sector.
No change in Service Tax rates.
No change in peak rates of customs and excise duties also.
5
Economy / Taxation – A Status
6. Growth of Service Tax
Year No of new
services
Total No of
services
Total collection
(Rs. in crore)
1994 3 3 407
2001 - 26 2612
2005 13 72 14199
2008 7 103 51301
2010 3 112 58000
2012 0 120 97509
2013 - All 132697 (RE)
131884 (A)
2014 - All 180141 (BE)
7. Introduced in India in 1994 as a simple, modest tax with just three
services.
Service tax – an indirect tax.
Approach to Service Tax – Selective as against comprehensive
one.
Desirable from revenue, equity and economic view point.
Governed by Finance Act, 1994 and a dozen of rules.
Legislative dependence on over 25 other laws.
Scattered and heterogeneous large mass of service providers as
well as wide spectrum of services.
Jurisdictional application.
7
Service Tax in India (The Past)
8. Shift to Comprehensive Approach
W.e.f. 1st July, 2012
Finance Act, 2012 – A land mark Act to shift from selective
positive approach to negative approach.
It took 18 years to shift from selective approach (positive) to
comprehensive approach (negative ) to tax services
All services to be taxed other than services specified in
the negative list and exempted services – Section 66B.
8
Service Tax – The Present
9. 9
All Services
(including declared Services
(-)
Specific Exclusions
(-)
Negative List Services
Exemptions
Taxable Services
(-)
Present Taxation of Services
(=)
10. New Provisions in Service Tax under
Negative List
Section 66 B deals with charge of service tax
on or after Finance Act, 2012
Section 66 C provides for determination of
place of provision of service.
Section 66 D comprises of negative list of
services
Section 66 E comprises of the services which
constitute declared services
Section 66 F provide principles of interpretation
of specified description of services
or bundled services
10
11. Effective rate of Service Tax @ 12.36 percent w.e.f. 01.04.2012
including education cess.
Definition of ‘service’ finds place in statutory provisions
Place of provision of service rules determine the location of
service and become be basis of taxation.
Concept of taxable territory and non- taxable territory
introduced
Classification of service criteria replaced by new section 66F on
interpretation principles of specified description of services or
bundled services.
Under new reverse charge mechanism, onus of paying Service
Tax will be shared by service provider and service receiver in case
of specified services.
11
MAJOR CHANGES IN SERVICE TAX FOR
2012-13 AT A GLANCE
12. Quarterly Service Tax Returns
April to June, 2012
N. No. 47/2012-ST dated 28.09.2012 – for April to June 2012,
quarterly return prescribed.
Order No. 3/2012 - last date of return was extended upto 25.11.2012
July to September, 2012
N. No. 1/2013-ST, dated 22.02.2013
Circular No. 137 dated 22.02.2013 / Order No. 1
Last date 25th March, 2013; extended to 15th April, 2013; further
extended upto 30th April 2013 vide Order No. 2/2013-ST, dated
12.4.2013
October 2012 to March, 2013
Vide Order No. 3/2013 dated 23.04.2013 , last date extended upto 31st
August , 2013
12
MAJOR CHANGES IN SERVICE TAX IN
2012-13 AT A GLANCE
13. Changes in Budget / Finance Act, 2013
Stability in negative list maintained with only a few changes.
Penalty u/s 77(a) (in case of non-registration) shall be
restricted to a maximum of Rs. 10,000.
New provisions for revised punishments for offences u/s 89,
makes certain offences cognizable and others non cognizable
and bailable.
New Section 78A inserted to impose penalty on directors and
officials of company for specified willful actions / offences.
Power to arrest provided u/s 91 where Service Tax
contravention / default is more than Rs. 50 lakhs.
13
Recent Amends in Service Tax
14. ‗Service' has been defined in clause (44) of the section 65B
and means –
any activity
For a consideration
carried out by a person for another
and includes a declared service (66E)
14
What is Service
15. 15
The New Taxability Concept
Taxable
3.
Exemptions
(39)
1. Non -
Taxable
territory
(POPS)
2.
Negative
list (17)
SERVICE FOR A CONSIDERATION
E - MAGIC TEST
E: Employee
M: Money
A: Actionable claim
G: Goods
I: Immovable property
C: Court Fee
9DECLAREDSERVICES
16. Activity must be for a consideration (nexus / reciprocity)
Activity – includes both activity as well as non-activity
Consideration – includes both monetary and non
monetary consideration.
Two persons are involved –
Service provider
Service receiver
Only services provided by one person to another are
taxable
Person – natural as well as artificial
16
What is Service
17. Activity
Not defined in the Act
In common understanding, activity includes –
An act done
A work done
A deed done
An operation carried out
Execution of an act
Provision of a facility etc.
Activity could be active or passive and forbearance to act
Agreeing to an obligation to refrain from an act or to tolerate
an act or a situation - listed as a declared service u/s 66E
17
What is Service
18. Consideration
Means everything received or recoverable in return for a
provision of service which includes -
○ Monetary payment
○ Non-monetary payment
○ Deferred consideration
Under Indian Contract Act, 1872, consideration means -
―When, at the desire of the promisor, the promisee or any other
person has done or abstained from doing, or does or abstains from
doing, or promises to do or to abstain from doing, something, such
act or abstinence or promise is called a consideration for the
promise‖
18
What is Service
19. Activity for a Consideration
Activity should be carried out by a person for a
consideration
Activity without consideration like-
○ Donation
○ Gifts
○ Free charities
outside the ambit of service
Charity for consideration would be service and
taxable unless otherwise exempted
19
What is Service
20. 'Service' does not include -
any activity that constitutes only a transfer in title of goods or
immovable property by way of sale, gift or in any other manner.
a transfer, delivery or supply of goods which is deemed to be a sale of
goods within the meaning of clause (29A) of article 366 of the
Constitution
a transaction only in money or actionable claim
a service provided by an employee to an employer in the course of the
employment.
fees payable to a court or a tribunal set up under a law for the time being
in force
20
What is Service : Exclusions
21. This scope shall not apply to –
a) functions performed by M.P., M.L.A., Members of
Panchayats / Municipalities who receive any consideration
in performing the functions of that office as such member;
or
b) duties performed by any person who holds any post in
pursuance of the provisions of the Constitution in that
capacity; or
c) duties performed by any person as a Chairperson or a
Member or a Director in a body established by the Central
Government or State Government or local authority and
who is not deemed as an employee before the
commencement of this section.
21
What is Service
22. 22
What is Service
For the purpose of scope of service -
(a) an unincorporated association or a AOP and a member thereof shall be
treated as distinct persons;
(b) an establishment of a person in the taxable territory and any of his
other establishment in a non-taxable territory shall be treated as
establishments of distinct persons.
(c) A person carrying on a business through a branch or agency or
representational office in any territory shall be treated as having an
establishment in that territory
23. Sponsorship Service
Not defined in new Law
Sponsorship in old regime [Section 65(99a)] -
Sponsorship includes naming an event after the sponsor, displaying the
sponsor's company logo or trading name, giving the sponsor exclusive or
priority booking rights, sponsoring prizes or trophies for competition; but
does not include any financial or other support in the form of donations or
gifts, given by the donors subject to the condition that the service provider is
under no obligation to provide anything in return to such donors.
The following services shall be included in sponsorship —
naming an event after the name of sponsor
displaying the sponsor's company logo on trade name
giving the sponsor exclusive or priority booking rights
sponsoring prizes or trophies for competition
other support with obligation to provide anything in return.
Sponsorship will exclude financial support without any obligation, gifts or
donations, sponsorship of sport events given by donors subject to
conditions that the service provider is under no obligation to provide
anything in return to such donors.
24. Event Management Service
Not defined in new Law
Event management in old regime [Section 65(40)] —
"event management" means any service provided in relation to planning
promotion, organising or presentation of any arts, entertainment, business,
sports, marriage or any other event and includes any consultation
provided in this regard.
The event management services would cover certain specific services in
relation to -
consultation
planning
promotion
organizing, or
presentation, of any of the following —
○ arts
○ entertainment
○ Business
○ sports
○ Marriage
○ any other event
25. Event Manager
Not defined in new Law
Event Manager in old regime [Section 65(41)]
Event manager means any person who is engaged in
providing any service in relation to event management in
any manner.
Following two features are clear from this definition -
event manager can be any person i.e., natural or legal.
He must be engaged in providing services in any manner
in relation to management of any event.
26. Agreeing to an obligation to refrain from an Act / to tolerate Act or situation /
to do an Act [section 66E(e)]
Following activities if carried out by a person for another for
consideration would be treated as provision of service -
Agreeing to an obligation to refrain from an act.
Agreeing to an obligation to tolerate an act or a situation.
Agreeing to an obligation to do an act.
26
Declared Services
27. Obligations / Actions
Examples of Taxable Obligations / Actions
Non-compete fees for agreeing not to compete
compensation on termination of business agreements
advance forfeited for cancellation of agreement to provide a
service.
forfeiture of security deposit for damages done by service
receiver in course of receiving of services.
cancellation charges being charged by airlines, hotels etc.
consideration for non-appearance in a court of law or
withdrawal of suit.
demurrage charges or detention charges
27
Declared Services
28. Event related Services covered in Negative List
Admission to entertainment events and access to amusement
facilities
Section 65B(24)
‗Entertainment event‘ if it is intended (may not
necessarily provide) to provide any one or more of
the following to the recipients / viewers / audience
• recreation
• pastime
• fun , or
• enjoyment
to be contd …….
29. Event related Services covered in Negative
List
Admission to entertainment events and access to
amusement facilities
This could be by way of –
• exhibition of cinematographic film
• circus
• concerts
• sporting events
• pageants
• award functions
• dance performance
• musical performance
• theatrical performances – drama, ballets or any such event
/ programme.
to be contd …….
30. Event related Services covered in Negative
List
Admission to entertainment events and access to
amusement facilities
“Amusement facility" means
• a facility where fun
• recreation is provided by means of rides
• gaming devices
• bowling alleys in amusement parks
• amusement arcades
• water parks
• theme parks
• such other places
• but does not include a place within such facility where
other services are provided
to be contd …….
31. Event related Services covered in Negative
List
Admission to entertainment events and access to
amusement facilities
• Amusement means entertainment, diversion, pastime,
sport etc.
• Theatrical performances need not be performed in
theatre
• Standalone amusement ride in a mall – fun or recreation
by means of ride – covered under amusement –
excluded
• Membership of club which provides amusement facilities
- excluded
• Event manager for organizing an entertainment event or
entertainment is not covered in this category
32. Selling of space or time slots for advertisements other than
advertisements broadcast by radio or television
This entry in negative list should qualify the following tests –
• involves selling of space (in case of print media)
• involves selling of time slots ( in case of electronic media)
• purpose of selling time slots / space to be for advertisements
(publicity / sales promotion, awareness etc.)
• excludes broadcast by radio or television ( i.e. broadcast will be
taxable)
contd …….
32
Event related Services covered in Negative
List
33. Event related Services covered in
Negative List
Taxable Non-taxable
Sale of space or time for
advertisement to be broadcast on
radio or television
Sale of space for advertisement in
print media
Sale of time slot by a broadcasting
organization
Sale of space for advertisement in bill
boards, public places (including
stadia), buildings, conveyances, cell
phones, automated teller machines,
internet
Aerial advertising
Presentation made in person
33
34. Event related Services covered in
Negative List
Not covered in Negative List Covered In Negative List
Printing & Publishing of yellow pages,
business directory and trade catalogues
etc.
Spaces allotted in buses and public
transport system public transport system
to run display of advertisement
Advertisement services to Government
departments
Private circulation of magazines / journals
Purchase of time slots from broadcaster
and sold to advertising agency
Telephone directories
Preparing advertisement for display
during a movie in theatre
Clubs, associations, professional bodies
etc. member's list / directories
Services provided by advertisement
agencies in relation to preparation of
advertisement
Internal directories / business information
Commission received by advertisement
agencies from broadcasting or publishing
companies
34
35. Advertisement means
• any form of presentation for promotion of,
• or bringing awareness about,
• any event,
• idea,
• immovable property,
• person, service,
• goods or actionable claim through
• newspaper, television, radio or any other means
• but does not include any presentation made in person;
• Services provided by advertisement agencies relating to
preparation / designing etc of advertisements are taxable.
• Print media includes newspaper and books.
35
Event related Services covered in
Negative List
36. Event related Services covered under
Exemption
Services by way of sponsorship of sporting events
organized- (Entry No. 11)
a) by a national sports federation, or its affiliated federations, where
the participating teams or individuals represent any district, state
or zone;
b) by Association of Indian Universities, Inter-University Sports
Board, School Games Federation of India, All India Sports
Council for the Deaf, Paralympic Committee of India or Special
Olympics Bharat;
c) by Central Civil Services Cultural and Sports Board;
d) as part of national games, by Indian Olympic Association; or
e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA)
Scheme
37. Event related Services covered under
Exemption
Services by way of sponsorship of sporting events
• Events, i.e., tournaments or championships organized
only by specified bodies in relation to games, sport,
cultural events etc – Exempted
• Any sponsorship of event organized by any other body
like BCCI arranging IPL cricket tournament –Not
Exempted
• Vide N. No. 30/2012-ST dated 20.6.2012, entire service
tax is payable by the body corporate or partnership firm
receiving the service in India under reverse charge
method
38. Event related Services covered under
Exemption
Services by a performing artist in folk or classical art forms of (i) music,
or (ii) dance, or (iii) theatre, excluding services provided by such
artist as a brand ambassador; (Entry No. 16)
• The service provided by any person being a performing artist in the
form of -
• folk, or
• classical
in relation to -
• music,
• dance, or
• theatre
are exempt
• if such an artist provides services as a brand ambassador for any
product, service, event or company etc for a consideration - Taxable
39. Event related Services covered under
Exemption
Services by an organizer to any person in respect of a
business exhibition held outside India (Entry No. 31)
Organizer should be in India
Exhibition should be held outside India
It should be in relation to business
39
40. Taxation of Cross Border Services
How to Determine Taxability –
i) Which rule applies to the service provided specifically? In case more
than one rules apply equally, which of these come later in the order
given in the rules?
ii) What is the place of provision of the service in terms of the above
rule?
iii) Is the place of provision in taxable territory? If yes, tax will be payable.
If not, tax will not be payable.
iv) Is the provider 'located' in the taxable territory? If yes, he will pay the
tax.
v) If not, is the service receiver located in taxable territory? If yes, he
may be liable to pay tax on reverse charge basis.
vi) Is the service receiver an individual or government receiving services
for a non-business purpose, or a charity receiving services for a
charitable activity? If yes, the same is exempted.
vii) If not, he is liable to pay tax.
40
41. Taxation of Cross Border Services
Rule 3- Default Rule
The main rule or default rule provides that a service shall
be deemed to be provided , where the receiver is located
In case, when location of the service receiver is not
ascertainable, location of the service provider is the place
of provision of service
This rule is applied when none of the other later rules
apply
41
42. Rule 3- Default Rule
42
‘A’
Service Provider
‘X’
Service Provider
‘B’
Service Receiver
‘Y’
Service Receiver
Taxable Territory Non- Taxable Territory
Taxablefor
A
Taxable for B
Not Taxable
43. Taxation of Cross Border Services
Rule 6- Service relating to Events
Place of provision is the place where event is actually held
Covers admission to events, organizing events and ancillary services relating to events
Includes cultural, artistic, sporting, scientific, educational, entertainment event, or a
celebration or any other similar event
Examples
Conventions
Conferences
Exhibitions
Fairs , Seminars
Workshops
Weddings
Sports
Cultural Events etc. Contd……
43
44. Taxation of Cross Border Services
Rule 6- Service relating to Events
A management school located in UK intends to organize a road show in
Mumbai and New Delhi for prospective students. Any service provided by
an event manager, or the right to entry like participation fee for prospective
student will be taxable in India.
An Indian fashion design firm hosts a show at USA. The firm receives the
services of a Canadian event organizer. The place of provision of this
service is the location of the event, which is outside the taxable territory.
Any service provided in relation to this event, including entry fee will not be
taxable.
Provision of sound engineering for an artistic event is a pre-requisite for
staging of that event and should be regarded as a service ancillary to its
organization. A service of hiring a specific equipment to enjoy the event at
the venue, is ancillary to admission. 44
45. Taxation of Cross Border Services
Rule 14- Order of application of Rules
Where more than one rule applies, rule that
occurs later is relevant rule
45
46. Under Partial Reverse Charge (Proportional)
Renting of motor vehicles
Manpower supply & security services
Works contracts
Under Full Reverse Charge (100%)
Insurance related services by agents
goods transportation by road
sponsorship
arbitral tribunals
legal services
company director's services
services provided by Government / local authority excluding
specified services
services provided by persons located in non-taxable territory to
persons located in taxable territory.
46
Liability to pay tax under Reverse Charge
by Service Receiver
47. Governed by Notification No. 30/2012-ST dated
20.06.2012 w.e.f. 1.7.2012
Liabilities of both the service provider and service receiver
are independent of each other
Reverse charge will not apply where the service receiver
is located in non-taxable territory
For three specified services provided by business entities
being company, society, cooperative society, trust etc,
reverse charge will not apply.
Reverse charge will also not apply where the service
recipient is any person or business entity not being a body
corporate in case of three specified services
Small scale benefit is available only to service provider
(not to service receiver), if entitled
47
Important Points in Reverse Charge
Mechanism
48. Service receiver under reverse charge cannot avail
exemption of Rs. 10 lakh under Notification No. 33/2012-
ST dated 20.06.2012
Valuation of services by services provider and service
receiver can be on different principles, if permitted by law
(e.g. works contract - Refer Notification No. 30/2012-ST,
explanation II)
Liability to pay Service Tax for ongoing contracts will be as
per Point of Taxation Rules, 2011
Reverse charge shall not be applicable if provider of
service was liable before 1.7.2012
Service Tax will not be payable by service receiver under
reverse charge, if service was provided prior to 1.7.2012,
even if payment is made after 30.06.2012
48
Important Points in Reverse Charge
Mechanism
49. Service Provider Service Receiver
Individual Advocate / Firm / LLP **Business entity with turnover > Rs 10
lakhs in preceding financial year
Arbitral Tribunal **Business entity with turnover > Rs 10
lakh in previous financial year
** Business entity may be an individual also
49
Reverse Charge for Legal
Services
50. Reverse Charge Mechanism under
various services
S. No. Description of Service Service provider Service receiver
1. Services provided by an insurance
agent to any person carrying on
insurance business
Nil 100%
2. Services provided by a goods
transport agency in respect
of transportation of goods by road
Nil 100%
3. Services provided by way of
sponsorship
Nil 100%
50
51. Reverse Charge Mechanism
under various services
S. No. Description of Service Service provider Service receiver
4. Services provided by an arbitral tribunal Nil 100%
5. Services provided by individual advocate or
a firm of advocates by way of legal services
Nil 100%
5A. in respect of services provided or agreed
to be provided by a director of a company
to the said company ( w.e.f 7.08.2012)
Nil 100%
6. Services provided by Government or local
authority by way of support services
excluding,-
(1) renting of immovable property,
(2) postal services
(3) transport of goods / passengers
(4) air craft or vessel
Nil 100%
51
52. Reverse Charge Mechanism under
various services
S. No. Description of Service Service provider Service receiver
7. Hiring of Motor Vehicle
(a) renting of a motor vehicle
designed to carry passengers on
abated value to any person not
engaged in the similar line of
business
(b) renting of a motor vehicle
designed to carry passengers on non
abated value to any person who is
not engaged in the similar line of
business
Nil
60%
100 %
40%
8. Services provided by way of supply
of manpower for any purpose or
security services ( w.e.f 07.08.2012)
25% 75 %
52
53. Reverse Charge Mechanism under various
services
Sr.No Description of Service Service provider Service receiver
9. Services provided in service portion
in execution of works contract 50% 50%
10. Services provided by any person who
is located in a non-taxable territory
and received by any person located in
the taxable territory
Nil 100%
53
54. Service Provider Service Receiver Service Tax Payable by
Individual /HUF/
Partnership firm
/AOP
Business entity –
body corporate
Joint
Individual /HUF/
Partnership firm
/AOP
Individual /HUF/
partnership firm
/AOP
100 % by service
provider
Business entity –
Body Corporate /
Company
Individual /HUF/
Partnership firm
/AOP
100 % by service
provider
Business entity –
Body Corporate
Business entity –
Body Corporate
100 % by service
provider
54
Reverse Charge Obligations for three
Specified Services
55. Gross amount charged by the service provider
for such services provided or to be provided
(Section 67)
Service Tax (Determination of Value) Rules,
2006, Rule 5 – Inclusions in or exclusion from
value of expenditure / costs
Expenditure / costs incurred in course of providing
services – treated as consideration
Expenditure / costs incurred as pure agent of recipient
of service – excluded conditionally
RE arises where person paying is under no
obligation to pay but pays on behalf of other
55
Valuation of Services –
Reimbursements
56. Cenvat Credit
Output Service [Rule 2(p)]
Output service means any service provided by a provider
of service located in the taxable territory but shall not
include a service,—
(1) specified in section 66D of the Finance Act; or
(2) where the whole of service tax is liable to be paid
by the recipient of service.( reverse charge)
57. Cenvat Credit
Input Service [Rule 2(l) ]
Input service would mean any service which is received and consumed by service provider in
relation to providing an output service, or which is used by manufacturer, directly or
indirectly in relation to manufacture of final products and clearance of final products upto
the place of removal. Thus, input services could be used by an output service provider or
a manufacturer in relation to providing service or manufacturing a final product. Input
service will also include services used in relation to any one or more of the following —
(a) setting up of a factory,
(b) setting up of a premises of output service provider,
(c) setting up of a office relating to any factory or premises,
(d) advertisement or sales promotion,
(e) procurement of inputs,
(f) activities relating to management of business (say, business auxiliary
services)
58. Cenvat Credit
such as —
(i) accounting, (ii) auditing,
(iii) financing, (iv) recruitment,
(v) quality control,
(vi) coaching and training,
(vii) computer networking,
(viii) credit rating,
(ix) share registry,
(x) security,
(xi) inward transportation of inputs or capital goods,
(xii) outward transportation upto the place of removal.
59. Cenvat Credit
Exempted service means a— (Rule 2(e))
taxable service which is exempt from the whole of
the service tax leviable thereon; or
service, on which no service tax is leviable under
section 66B of the Finance Act; or
taxable service whose part of value is exempted on
the condition that no credit of inputs and input
services, used for providing such taxable service,
shall be taken;
but shall not include a service which is exported in
terms of rule 6A of the Service Tax Rules, 1994.
Exempted services includes trading
60. Rule 4A (Contents of Invoice, Bill or
Challan)
Name, address and the registration number of
service provider.
Name and address of the person receiving
taxable service.
Description and value of taxable service provided
or agreed to be provided.
The service tax payable thereon.
61. Voluntary Compliance Encouragement Scheme, 2013 (VCES)
Chapter VI (Clause 94-104 of Finance Bill, 2013)
17 lakh assessees, 7 lakh returns filed
Stop filers / non-filers
Only a one time scheme
To chase assessees not possible
Hope to collect reasonable money
Action & consequences
Truthful declaration of service tax dues service 1.10.2007 upto 31.12.2012 by
defaulter as on 1.03.2013
Payment of due tax in 1 or 2 installments
Interest , penalties and other consequences waived
Not applicable to period before 1.10.2007 or after 31.12.2012
Not applicable to cases involved search, audit, investigation, SCN or
summon issued cases as on 1. 03. 2013
61
Changes in Budget 2013-14
(Finance Bill, 2013)
62. Voluntary Compliance Encouragement Scheme, 2013 (VCES)
Pay at least half of tax before, 31st December, 2013
Pay balance by
30th June, 2014 without interest
31st December 2014 with interest w.e.f. 1.07.2014
Dues for period after 31st December, 2012 to be settled as per
present Law
No refund of amount paid under VCES
Tax dues declared but not paid – to be recovered as per Law
False declaration to be rejected - reason to believe, notice to be
served
No action after one year from date of declaration
Once acknowledgement is issued - no reopening permissible
62
Changes in Budget 2013-14
(Finance Bill, 2013)