Service tax voluntary compliance encouragement rules,2013

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HIMANSHU SHARMA (Querist)
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27 June 2013 Please Comment on this Point: "The Cenvat Credit shall not be utilised for payment of tax dues under the schemes." TAX due means, I want to pay service tax period from 2008 to 2012 under this schem, whether Cenvet Credit cannot be utilised? What is the reason for not giving Cenvat Credit.... Waiting for reply.....

Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 1)No, the liability under this scheme has to be fully discharged in cash and Cenvat can’t be utilized for the payment of dues under this scheme.

2)Scheme says that we have to pay in cash so we have to pay in cash only as per law..

3)in case of reverse charge also we have to pay in cash only..why we have to pay in cash..?
we need to pay in cash as law says to do so

Thanks & regards
Ganesh babu k

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HIMANSHU SHARMA

HIMANSHU SHARMA (Querist)
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27 June 2013 thanks for reply
Means Cenvat Credit cannot be utilised for the period 2013 for payment of ST.. but Cenvat Credit for the period 2008 to 2012 can be utilised under this scheme.... please chekc my calcuation is correct: Service tax payabe year 2008 rs.2267437.03
Input Credit year 2008 201216.9 - -----------------------
Net Tax Payable 206220.13
if you have any calcuation sheet under this scheme, please post.

Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 No you cannot use cenvat credit..to pay dues under this scheme...

1)yes,The scheme is applicable for a period ranging from 01- October -2007 to 31-December-2012

2)as i said above,..No, the liability under this scheme has to be fully discharged in cash and Cenvat can’t be utilized for the payment of dues under this scheme.

Cenvat credit balance cannot be used to discharge dues in this scheme

You can confirm with your auditor or some other person as cross verification if you want to confirm

Please also note

the tax paid under VCES is not refundable in any manner

3)Sorry i dont have any caluculation sheets..

Thanks & regards
Ganesh babu k

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