Voluntary compliance
Querist : Anonymous
What should we fill in the column Details of tax dues in Form VCES-1since we have paid all the tax amount ?
Querist : Anonymous
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### 1. **Can you take advantage of Voluntary Compliance Encouragement Scheme (VCES)?**
* **Yes, you can opt for VCES** to regularize your past service tax liabilities including unpaid interest and penalties.
* Even if you have **paid the principal service tax amount but have not paid interest or filed returns**, VCES allows you to disclose these dues voluntarily and get relief from interest and penalties.
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### 2. **What to mention in the “Details of Tax Dues” column in Form VCES-1 if you have paid the tax but not interest?**
* In the **Details of Tax Dues**, you should declare **all outstanding dues including interest and penalties** that are due as on the date of filing the VCES declaration, even if the principal tax has been paid.
* This means **interest amount payable for late payment and any penalties if applicable** should be declared.
* The scheme requires full disclosure of all unpaid dues.
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### 3. **Additional Points:**
* Filing of **Service Tax Returns (ST-3)** for the period during which tax is unpaid is required to be regularized.
* On payment under VCES, you get **waiver of interest and penalty** on disclosed dues but need to pay full tax dues (which you already paid) plus any other disclosed amounts.
* After VCES closure, no further demand can be raised on the disclosed dues.
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### Summary Table:
| Situation | What to do under VCES |
| ----------------------------- | ----------------------------------------- |
| Tax paid, interest unpaid | Declare unpaid interest in Form VCES-1 |
| Service Tax Returns not filed | File pending returns along with VCES |
| Full disclosure needed | Include all dues (tax, interest, penalty) |
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