VCES - Tax Dues - Clarification
A concerned Netizen writes in:
Sir,
This is with reference to the Board's clarification on VCES reported in DDT on 26.11.2013 :
Service Tax along with interest paid before the Scheme came into effect: As no "tax dues" is pending in such case, declaration cannot be filed under VCES. However, there may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 1994. In this regard attention is invited to section 73 (3) and section 80 of the Finance Act, 1994.
In this context, reference is invited to the Section 105 (e) of the Finance Act,2013:
105 (e) "Tax dues" means the service tax due or payable under the Chapter or any other amount due or payable under section 73A thereof, for the period beginning from the 1st day of October, 2007 and ending on the 31st day of December, 2012 including a cess leviable thereon under any other Act for the time being in force, but not paid as on the 1st day of March, 2013.
It may be seen that the definition of tax dues as per Finance Act, 2013 clearly covers any amount due or payable during the period 01.10.2007 to 31.12.2012 and not paid as on 01.03.2013.
It means the tax dues paid after 01.03.2013 are eligible for VCES, but the Board is repeatedly clarifying that any amount paid before enactment of VCES/scheme came into effect is not eligible for VCES.
VCES scheme came into effect from 10.05.2013(date of Finance Act,2013) and VCES Rules were notified w.e.f 13.05.2013.
The departmental officers are not accepting the payment made before 13.05.2013 under VCES on the basis of referred circular. Can provisions of Finance Act be overruled by Board's circulars? Perhaps yes, as it bears signature of a departmental officer, whereas there is no visible signature on the Finance Act,2013.
Any remedy?