The Finance Act, 2013 (17 of 2013)
Chapter VI: Service Tax Voluntary Compliance Encouragement Scheme, 2013
Short title.
104. This Scheme may be called the Service Tax
Voluntary Compliance Encouragement Scheme, 2013.
Definitions.
105. (1) In this Scheme,
unless the context otherwise requires,-
(a) "Chapter" means Chapter V
of the Finance Act, 1994;
(b) "declarant" means any
person who makes a declaration under sub-section (1) of
section 107;
(c)
"designated authority" means an officer not below the rank
of Assistant Commissioner of Central Excise as notified by the
Commissioner of Central Excise for the purposes of this Scheme;
(d) "prescribed" means
prescribed by rules made under this Scheme;
(e) "tax dues" means the
service tax due or payable under the Chapter
or any other amount due or payable under
section 73A thereof, for the period beginning from
the 1st day of October, 2007 and ending on the 31st day of
December, 2012 including a cess leviable thereon under any other
Act for the time being in force, but not paid as on the 1st day
of March, 2013.
(2) Words and expressions used
herein and not defined but defined in the Chapter or the rules
made thereunder shall have the meanings respectively assigned to
them in the Chapter or the rules made thereunder.
Person who may make
declaration of tax dues.
- (1) Any person may
declare his tax dues in respect of which no notice or an order
of determination under section 72 or section 73 or section 73A
of the Chapter has been issued or made before the 1st day of
March, 2013:
Provided
that any person who has furnished return under section 70 of the
Chapter and disclosed his true liability, but has not paid the
disclosed amount of service tax or any part thereof, shall not
be eligible to make declaration for the period covered by the
said return.
Provided
further that where a notice or an order of determination has
been issued to a person in respect of any period on any issue,
no declaration shall be made of his tax dues on the same issue
for any subsequent period.
(2) Where a declaration has
been made by a person against whom,-
(a) an inquiry or
investigation in respect of a service tax not levied or not paid
or short-levied or short-paid has been initiated by way of-
(i) search of
premises under section 82 of the Chapter; or
(ii) issuance of
summons under section 14 of the Central Excise Act, 1944, as
made applicable to the Chapter under section 83 thereof; or
(iii) requiring production of
accounts, documents or other evidence under the Chapter or the
rules made thereunder; or
(b) an audit has
been initiated,
and such
inquiry, investigation or audit is pending as on the 1st day of
March, 2013, then, the designated authority shall, by an order,
and for reasons to be recorded in writing, reject such
declaration.
Procedure for making
declaration and payment of tax dues.
107. (1) Subject to the provisions of
this Scheme, a person may make a declaration to the designated
authority on or before the 31st day of December, 2013 in such
form and in such manner as may be prescribed.
(2) The designated authority
shall acknowledge the declaration in such form and in such
manner as may be prescribed.
(3) The declarant shall, on or
before the 31st day of December, 2013, pay not less than fifty
per cent. of the tax dues so declared under
sub-section (1) and submit proof of such payment to the
designated authority.
(4) The tax dues or part
thereof remaining to be paid after the payment made under
sub-section (3) shall be paid by the declarant on or
before the 30th day of June, 2014:
Provided
that where the declarant fails to pay said tax dues or part
thereof on or before the said date, he shall pay the same on or
before the 31st day of December, 2014 along with interest
thereon, at such rate as is fixed under section 75 or, as the
case may be, section 73B of the Chapter for the period of delay
starting from the 1st day of July, 2014.
(5) Notwithstanding anything
contained in sub-section (3) and sub-section (4),
any service tax which becomes due or payable by the declarant
for the month of January, 2013 and subsequent months shall be
paid by him in accordance with the provisions of the Chapter and
accordingly, interest for delay in payment thereof, shall also
be payable under the Chapter.
(6) The declarant shall
furnish to the designated authority details of payment made from
time to time under this Scheme along with a copy of
acknowledgement issued to him under sub-section (2).
(7) On furnishing the
details of full payment of declared tax dues and the interest,
if any, payable under the proviso to sub-section (4),
the designated authority shall issue an acknowledgement of
discharge of such dues to the declarant in such form and in such
manner as may be prescribed.
Immunity from penalty,
interest and other proceeding.
108. (1)
Notwithstanding anything contained in any provision of the
Chapter, the declarant, upon payment of the tax dues declared by
him under sub-section (1) of section 107 and the
interest payable under the proviso to sub-section (4)
thereof, shall get immunity from penalty, interest or any other
proceeding under the Chapter.
(2)
Subject to the provisions of section 111, a declaration made
under sub-section (1) of section 107 shall become
conclusive upon issuance of acknowledgement of discharge under
sub-section (7) of section 107 and no matter shall be
reopened thereafter in any proceedings under the Chapter before
any authority or court relating to the period covered by such
declaration.
No refund of amount
paid under the Scheme.
109. Any amount paid in pursuance of a
declaration made under sub-section (1) of section 107
shall not be refundable under any circumstances.
Tax dues declared but
not paid.
110. Where the declarant fails to pay the tax
dues, either fully or in part, as declared by him, such dues
along with interest thereon shall be recovered under the
provisions of section 87 of the Chapter.
Failure to make true
declaration.
- (1) Where the
Commissioner of Central Excise has reasons to believe that the
declaration made by a declarant under this Scheme was
substantially false, he may, for reasons to be recorded in
writing, serve notice on the declarant in respect of such
declaration requiring him to show cause why he should not pay
the tax dues not paid or short-paid.
(2) No action shall be taken
under sub-section (1) after the expiry of one year from
the date of declaration.
(3) The show cause notice
issued under sub-section (1) shall be deemed to have
been issued under section 73, or as the case may be, under
section 73A of the Chapter and the provisions of the Chapter
shall accordingly apply.
Removal of doubts.
112. For the removal of doubts, it is hereby
declared that nothing contained in this Scheme shall be
construed as conferring any benefit, concession or immunity on
the declarant other than the benefit, concession or immunity
granted under section 108.
Power to remove
difficulties.
113. (1) If any difficulty
arises in giving effect to the provisions of this Scheme, the
Central Government may, by order, not inconsistent with the
provisions of this Scheme, remove the difficulty:
Provided
that no such order shall be made after the expiry of a period of
two years from the date on which the provisions of this Scheme
come into force.
(2) Every order made under
this section shall, as soon as may be after it is made, be laid
before each House of Parliament.
Power to make rules.
114.- (1) The Central Government may, by
notification in the Official Gazette, make rules for carrying
out the provisions of this Scheme.
(2) Without prejudice to
the generality of the foregoing power, such rules may provide
for all or any of the following matters, namely:-
(a) the form and the
manner in which a declaration may be made under subsection (1)
of section 107;
(b) the form and the
manner of acknowledging the declaration under sub-section (2)
of section 107;
(c) the form and the
manner of issuing the acknowledgement of discharge of tax dues
under sub-section (7) of section 107;
(d) any other matter
which is to be, or may be, prescribed, or in respect of which
provision is to be made, by rules.
(3) The Central Government
shall cause every rule made under this Scheme to be laid, as
soon as may be after it is made, before each House of
Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, the
rule shall thereafter have effect only in such modified form or
be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
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