Service tax amnesty scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 if service tax by a company has been paid for FY 2011-12 but it is yet to pay Service Tax for FY 2012-13. So in this case, company can get benifit to avoid penalty & Interest under Amnesty Scheme?? kindly reply

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 kindly reply reg this matter of Amnesty shceme of service Tax

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2013 online experts please reply...

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Yes, the company could benefit from the Service Tax Voluntary Compliance Encouragement Scheme (VCES), 2013, which was announced in Budget 2013 to provide relief for non-filers or non-payers of service tax.

✅ What is VCES, 2013?
The Voluntary Compliance Encouragement Scheme (VCES) was introduced under Chapter VI of the Finance Act, 2013 to allow taxpayers to declare and pay "tax dues" for the period 1 October 2007 to 31 December 2012, without interest and penalty.

✅ Your Case:
Service Tax for FY 2011–12 has been paid ✅

Service Tax for FY 2012–13 is still pending ❌

So the dues for April 2012 to December 2012 (i.e., Q1 to Q3 of FY 2012–13) fall under the eligible period of the VCES.

✅ Can You Avail VCES for This?
Yes — but only for dues up to 31 December 2012.

Period Eligible under VCES?
April 2012 to Dec 2012 ✅ Yes — covered under scheme
Jan 2013 to March 2013 ❌ No — not covered under VCES

❗ Conditions to Avail the Scheme:
The service tax dues must not be declared, assessed, or under audit/investigation by the department before 01.03.2013.

Declaration had to be filed in Form VCES-1 on or before 31 December 2013.

Tax payment schedule:

At least 50% of dues to be paid by 31 December 2013

Balance by 30 June 2014 (or extended till 31 Dec 2014 with interest)

❌ Important Note (as of now):
VCES 2013 is no longer available.
The scheme was time-bound and closed after December 2013.

If you're referring to this today (in hindsight or for records), it’s useful to know you could have availed the scheme, but only for unpaid dues up to Dec 2012.

🧾 For current resolution:
If the tax for FY 2012–13 (especially Jan–Mar 2013) is still unpaid as of now, you may need to:

Pay with interest and penalty, or

Seek relief under any amnesty scheme (if announced under GST-era Sabka Vishwas), although it may not cover old Service Tax dues now.

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