Eligibility under vces scheme

Queries 563 views 3 replies

CA Prateek

Proprietor

197 Points Joined June 2009

Dear All,

This has reference to the VCES Scheme which is ending on 31-Dec-2013.

A person has been issued letters for submitting documents like Balance Sheet, Profit & Loss Accounts, Work orders etc prior to 01.03.2013 without quoting any section as specified in section 106(2). After 01.03.2013, same letter was re-issued quoting section as specified in section 106(2) and thereafter SCN was issued.

We had filed Form VCES-1. However department has rejected the form VCES-1 on the plea that letter(s) (on which no section as specified under section 106(2) were quoted) issued prior to 01.03.2013 and SCN has been issued though afterwards ( i.e. after 01-03-2013). Therefore such person shall not be eligible for benefit under VCES scheme.

Reasons provided by department for rejection, in my opinion, contradicts clarifications provided in circulars 169/4/2013-ST, 170/5 /2013 and 174/9/2013. Therefore I wish to seek clarification and guidance whether such person is eligible for benefits under the said scheme?

Thanking you

Replies (3)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

In my view that Once Service Tax Department raised the demand queries in this regard you cannot go through VECS Scheme.

Ravindra Singh

Article Assistant

88 Points Joined September 2013

sir, i want to ask a query related to VCES, 2013, If we deposited the tax dues amount before submitting the VCES-1 to designated authority, now can we take the claim of deposited amount in VCES scheme?? plz tell me sir, is that person is eligibile for VCES SCHEME??

CA Prateek

Proprietor

197 Points Joined June 2009

Originally posted by : ravindra kumar singh
	sr, i want to ask a query related to VCES, 2013, If we deposited the tax dues amount before submitting the VCES-1 to designated authority, now can we take the claim of deposited amount in VCES scheme?? plz tell me sir, is that person is eligibile for VCES SCHEME??

In my opinion if "Tax dues" or part thereof has been paid prior to notification of VCES scheme is not ajdustable however if "Tax dues" or part thereof has been paid after notification of VCES Scheme then ajustment is possible even without submitting VCES-1. In this regards I further request you to refer FAQ on Scheme Question 12 and Circular 170/05/2013-ST dated 08-08-2013 Point 14.