VCES closes tomorrow; stern action from Jan 1: Govt
VCES closes tomorrow; stern action from Jan 1: GovtNew Delhi, Dec 30 (KNN) Government today said there would be no extension beyond December 31 for the service tax Voluntary Compliance Encouragement Scheme (VCES) which has raked in Rs 5,500 crore so far and CBEC commissioners will work till mid-night tomorrow to accept declarants. Stern action will be taken against tax evaders from January 1, 2014, it added.
“There will be no extension of the scheme since the last date is laid down in the Finance Act.
“We are making every effort to help all declarants. Our offices have been open on Saturdays and this last weekend, even on Sunday. Seeing the response, we have decided that today, December 30, 2013, the offices will be open well beyond normal working hours , in order to attend to all those who come in to file their declarations. Tomorrow, December 31, 2013, the offices will be open till midnight to facilitate acceptance of declarations,” Finance Secretary Sumit Bose said in a statement here.
He said there has been an overwhelming response to the VCES. In the last four days, the government has received over 16,000 applications involving Rs. 1500 crores of service tax dues.
“Up to December 29, we have received over 40,000 declarations involving over Rs 5500 crores. This would broadly correspond to Rs 55,000 crores of services, which have escaped the tax net. I would like to remind all service providers, both registered and unregistered, that this scheme is open till December 31 only.”
The Government has also extended banking hours in the designated branches, up to 6 pm tomorrow. In addition, all Commissionerates have been advised to accept demand drafts/pay orders submitted by declarants, under the Receipt Payment Rules.
The declarants have to pay 50 per cent of the declared tax dues by tomorrow, failing which they would be ineligible for the scheme.
“From January 1, 2014, stern action will be taken against service tax evaders and the provisions in the Finance Act relating to arrest and prosecution will be enforced in right earnest”, he said. (KNN Bureau)