Service tax voluntary compliance encouragement rules 2013

Assume,

A. Service tax payable for service provided 2008-2012 =Rs. 10 lacs

B. Cenvat credit of ST & excise available against above = Rs. 5 lacs

C. So Net ST payable = Rs. 5 lacs

D. Now, in 2013 , you have paid excise duty or/and  service tax of say Rs. 20 lacs  on some inputs and inputs services.purchased ..and their credit is available for paying ST and excise....

Here  since the excise and St credit of Rs. 20 lacs relates to 2013...thatt's why you cannot say to govt that adjust my O/standing liab of St Rs. 5 lacs(as in point C)....meaning thereby you need to settle the NET O/S ST OF RS. 5 LACS under VCES,2013 IN CASH AND ONLY IN CASH

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 for the year 2008 rs. 2267437.03

      Input Credit for the year 2008           201216.9

                                                      ------------------------

    Net Tax Payable for the year 2008       206220.13   

and 

if you have made calcuation under this scheme, pelease post calcuation sheet.... 

yes, your calculations are correct...sorry no working sheet right now...

ok 

but i have few confusion

1.in scheme instruction given that calcuation will be made in PART B of Form ST 3, in PART B only shows Service Tax calculation not payment through CASH or Cenvat....

2. form prescribed FORM VCES-1 also shows  detais of tax dues

Service Tax.......

Education Cess....

SHEC....

Total tax due,....

they cannot show adjustment of CENVAT CREDIT

As per the provisions of Rule 6(2) of Service Tax Voluntary Compliance Encouragement Rules, 2013. "The CENVAT credit shall not be utilised for payment of tax dues under the Scheme.". Thus it appears that no CENVAT credit can be utilised for making payment of Tax dues under the Service Tax Voluntary Compliance Encouragement Scheme.

Mir Irshad Ali, is right,,,

cenvat credi cannot  be utiised for paymnent of  tax due under this schem...

but cenvet credit canbe utiised for payment of tax due not covered under this scheme...