VCES is win Scheme - Don't let it fail
VCES is a wonderful scheme for a Service Provider who was not able to pay his Service Tax, avoided paying the tax or even evaded it. Only the tax has to be paid - no penalty, no interest and for the Government, it is a great opportunity for getting some revenue and perhaps expanding the tax base. Honest taxpayers may complain that they have been cheated, but that is the complaint with any amnesty scheme. In spite of the scheme being extremely attractive, why are service providers hesitating to grab the offer? There is something wrong somewhere. It must be either fear of the department or a dangerous confidence that they will not get caught.
If the Scheme has to be successful, the Department has to instil confidence in the assessees and reduce their preventive raids and coercive recovery proceedings. Even if cases are detected, they should be guided to avail the benefit of the scheme instead of forcing them to approach courts to get relief and benefits under the scheme. When you invite them to avail the scheme till 31 December, how fair is it to book cases before that date? Anybody who comes into the scheme brings you money - should you put him off? Actually they should be standing in queue in Service Tax offices to file declarations under VCES.