VCES - Commissioners say Scheme encouraged
OUR reports on the Service Tax VCES have evoked sharp reactions from Service Tax/Central Excise Commissionerates.
Ahmedabad Service Tax Commissioner Tejasvini P Kumar wrote in,
This has reference to your TIOL-DDT 2197 article Service Tax - VCES - Is Department Frustrating Scheme" dated 25.9.2013 in which you have mentioned that the said article was based on the news reported by the Sandesh Gujarati Daily News Paper published on 23.9.2013. In this regard, it is to inform you that the said news item was factually incorrect and we have already conveyed our response/version to the Editor, Sandesh on 27.9.2013(copy enclosed for reference).
Your attention is invited to Board's Circular No: 170/5/2013-ST issued under F.NO: B1/19/2013-TRU(Pt) dated 08.08.2013 (Sr. No.4) , vide which it has been amply clarified that there is no bar from filing of VCES declaration in cases where an inquiry, investigation or audit has been initiated after 01.3.2013 (the cut-off date) against any assessee. Accordingly such assesses of this Commissionerate who have defaulted and are eligible for VCES are not only being allowed but also encouraged to opt for VCES and they are filing VCES declaration for the period from 1st October, 2007 to 31st December, 2012.
We expect that you will also rectify your article in the website of Tax India On Line.
Noida Commissionerate was furious at our report carried in yesterday's DDT and they brought to our notice several facts like the search was before the VCES declaration - on this aspect, our report was slightly inaccurate, for which we profusely apologised. The Commissionerate also informed that the ‘Scheme' is a huge success in their Commissionerate where a total of 35 declarations have already been filed and none of the declarants have faced any problems till now.
We are grateful to the Commissionerates for their response.