News Flash
  • Weekly newsletter from Chairman, CBEC dated 18/05/2018. Click here
  • Notification issued for extending the due date of filing of FORM GSTR-3B for the month of April, 2018. Click here
  • Diversion of the posts of Principal Chief Commissioners of CBEC on their promotion. Click here
  • Draft Integrated All India Seniority List of Administrative Officers of Customs for the period 01.07.2014 to 31.12.2016 Click here
  • Circular regarding calling options for posting from ACs promoted vide Office Order No. 79/2018 dated 11.05.2018 Click here
  • Repair of Machinery and Equipment of vessel No. 22deployed at Nagapattinam. Click here
  • Repair of Machinery and Equipment of vessel No. 09 deployed at Visakhapatnam. Click here
  • Repair/ overhaul of Machineries /equipments installed onboard Category-I vessel Hull No. 16 deployed at Kandla
  • Repair/ overhaul of Machineries /equipments installed onboard Category-I vessel Hull No. 13 deployed at Ratnagiri
  • Suggestion/comments are invited from field formations on Reduction of Government litigations- Introduction of monetary limits at the level of Commissioner (Appeals), in legacy Central Excise & Service Tax matters only latest by 21st of may 2018. Click here
  • Letter to all Pr. CC/Pr. DG/CC/DGs for details of officers promoted as AC vide Office order No 79/2018 dated 11.05.2018. Click here
  • One Day Training Workshop On Usage Of Rajbhasa Hindi in Official Works and Procedures” for the Gr- A Officers of CBIC on 25th May, 2018. Click here
  • Repair/ overhaul of Machineries /equipments installed onboard Category-I vessel Hull No. 15 deployed at Mumbai Click here
  • Repair/ overhaul of Machineries /equipments installed onboard Category-I vessel Hull No. 11 deployed at Mumbai Click here
  • Notification issued for waiver of late fee for FORM GSTR-3B by those registered persons whose declaration in FORM GST TRAN-1 was submitted but not filed on the common portal on or before the 27.12.2017, subject to certain conditions.
  • All India Workshop on relevant Supreme Court/High Court judgements & its impact on departmental function at NACIN, Bangalore on 25.05.2018" for CBIC officers Click here
  • Updated version of GST Concept and Status and PPT on GST - An Update as on 01/05/2018 have been uploaded
  • Positive Change through Emotional Intelligence and Personality Development Click here
  • Grievance Redressal Officers (CBIC and State / UT Governments) for e-way bill system under rule 138D of Central/ State GST Rules, 2017 Click here
  • AGT 2018 system will be down post 2:00 PM due to migration activity for 6 hours today on 07/05/2018. Sorry for inconvenience cause.
  • List of Officers whose representations have been received online till 04.05.2018 (1630 Hrs) in DGHRD (HRM-II) w.r.t. AGT-2018 Circular. Click here
  • Circular on applicability of POPS to development of software and services on software issued - Click here
  • Change of Date Of "Two Days' Training Programme On Free Trade Agreement, Possible Misuse & Redressal Mechanism" from 14th & 15th May to 28th & 29th June, 2018 Click here
  • Change of Date for One Day Training on " APAR Writing & Infrastructure Development in CBIC for Group- A Officers of CBIC from 07th May, 2018 to 14th May, 2018 at NACIN Faridabad Click here
  • Annual General Transfer 2018 Circular Click here
  • Wider participation of citizens/public/employees is requested in taking online Integrity Pledge. For taking online Integrity Pledge please click here
  • Annual Calendar of Departmental Examination for the year 2018-19 for Group B and below Officers of CBIC. Click here
  • Application of 'own merit' rule for determining seniority of Superintendents in Zones under CBIC. Click here
  • Weekly newsletter from Chairman, CBEC dated 04/05/2018. Click here
  • CGST Rules, 2017 as amended upto 18.04.2018 have been uploaded. Click here
  • Details of Vendors providing E-seals as per Circular 36/2017-Customs & 37/2017-Customs Click here
  • Training on "Expenditure Management & Budget Planning" on 23.04.2018(Monday)by EMC, DGHRD at NACIN, Faridabad.Click here
  • Weekly newsletter from Chairman, CBEC dated 13/04/2018 Click here
  • "Clarification on issues related to furnishing of Bond / LUT for exports has been issued." Click here
  • Advisory on AIO functioning, connectivity issues for GST.-click here, TCS Escalatoin Matrix for GST Zones LAN Implementation, Wipro Handholders, HP Resident Engineers
View all

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. (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. (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.