1. By CA. Atul Kumar Gupta FCA, FCMA, MIMA

2. Page 2 Scheme Applicable from when? Benefit available?Who can apply? What is the Procedure?

3. Page 3 Applicable and Benefit 10 th May 2013 till 31 st December 2013 Only tax dues/ payable can be deposited. Interest, Penalty and Prosecution will be waived off. Section 108(1)

4. Page 4 Tax Due Means the service tax due or payable under the chapter or any other amount due or payable under Section 73A thereof, for the period from 1 st day of October 2007 and ending on the 31 st day of December 2012 including a cess leviable thereon under any Act for the time being in force, but not paid as on the 1 st day of March 2013.

5. Page 5 Who Can’t Apply [Section 106(1)] Person who have filed the return u/s 70 and disclosed his true liability but have not paid the disclosed amount of service tax or part thereof can not made declaration for the period covered. Any Person against whom any notice or an order of determination u/s 72, 73 or 73A has been issued or made before 1 st March, 2013.

6. Page 6 Who Can’t Apply [Section 106(1)] A person to whom a notice or an order or determination has been issued in respect of any period or any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period.

7. Page 7 Who Can Apply Department shall reject recording reasons [Sec 106(2)] Persons on whom any enquiry or investigation in respect of service tax not levied, not paid or short levied or short paid has been initiated by way of Search of premises under Section 82 of the Chapter. Issuance of Summon u/s 14 of CEA 1944. Requiring production of Accounts, documents or other evidence under the chapter or the rules; or

8. Page 8 Who Can Apply Department shall reject recording reasons [Sec 106(2)] An audit has been initiated. And such inquiry, investigation or audit is pending as on 1 st day of March 2013.

9. Page 9 Requiring production of Accounts, Documents or other Evidence under the Chapter or Rule Circular No 169/4/2013 dated 13 th May Clarifies: For the above terms only notice issued under Section 72 of the Finance Act and under Rule 5A of the Service Tax Rules 1994 will invoke rejection of declaration.

10. Page 10 Section 14 of Central Excise Act, 1944 SECTION 14: Power to summon persons to give evidence and produce documents in inquiries under this Act. — (1) Any Central Excise Officer duly empowered by the Central Government in this behalf, shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned.

11. Page 11 Section 14 of Central Excise Act, 1944 Section 14 (to be continued) (2) All persons so summoned shall be bound to attend, either in person or by an authorised agent, as such officer may direct; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and to produce such documents and other things as may be required:

12. Page 12 Section 72 – Best Judgment Assessment (a) fails to furnish the return under section 70; (b) having made a return, fails to assess the tax in accordance with the provisions of this Chapter or rules made there under, the Central Excise Officer, may require the person to produce such accounts, documents or other evidence as he may deem necessary and after taking into account all the relevant material which is available or which he has gathered, shall by an order in writing, after giving the person an opportunity of being heard, make the assessment of the value of taxable service to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment. If any person, liable to pay Service Tax

13. Page 13 Section 73 Recovery of Service Tax not levied or paid or Short –levied or Short-paid or Erroneously Refunded (1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the Central Excise Officer may, within ‘eighteen months’ from the relevant date, serve notice on the person chargeable with the service tax which has not been levied or paid or which has been short- levied or short-paid or the person to whom such tax refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice.

14. Page 14 Section 73A Service Tax Collected from any person to be deposited with Central Government (1) Any person who is liable to pay service tax under the provisions of this Chapter or the rules made thereunder, and has collected any amount in excess of the service tax assessed or determined and paid on any taxable service under the provisions of this Chapter or the rules made there under from the recipient of taxable service in any manner as representing service tax, shall forthwith pay the amount so collected to the credit of the Central Government.

15. Page 15 Section 73A Service Tax Collected from any person to be deposited with Central Government (2) Where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing service tax, such person shall forthwith pay the amount so collected to the credit of the Central Government (2) Where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing service tax, such person shall forthwith pay the amount so collected to the credit of the Central Government. (3) Where any amount is required to be paid to the credit of the Central Government under sub-section (1) or sub- section (2) and the same has not been so paid, the Central Excise Officer shall serve, on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government.

16. Page 16 Procedure 1/4 Person will apply in Form VCES 1 to designated authority (DA) on or before 31 st December 2013. Section 106(1) DA will acknowledge within 7 days for receipt. Section 106(2) Declarant shall pay on or before 31 st Dec 2013 not less than 50% so declared and has to submit proof of such payment to DA. Section 106(3) Remaining Part to pay on or before 30 th June 2014. Section 106(4)

17. Page 17 Procedure 2/4 In case fail to pay before 31 st Dec 2013/30 th June 2014, as the case may be, then can pay till 31 st Dec 2014 with interest as applicable under Section 75 (Sec 106 (4)) After furnishing details of full payment of declared tax and interest if any, the DA shall issue an acknowledgment of discharge of such dues. Section 106(7)

18. Page 18 Procedure 3/4 Once the acknowledgment of discharge of such dues Section 106(7), no matter shall be reopened thereafter in any proceedings to the period covered by such declaration. [Section 108(2)] Any amount paid in pursuance of declaration made shall not be refundable under any circumstances. [Section 109]

19. Page 19 Procedure 4/4 Where declarant fails to pay due tax either fully or partly as declared by him, such dues along with interest shall be recovered as under Section 87 of the Act. [Section 110] Where the CCE has reason to believe that the declaration made was substantially false, he may issue Show cause notice, within one year from date of declaration.

20. Page 20 Thank You and Your Query Please…. CA. Atul Kumar Gupta www.servicetax.net (M) 9810103611 atul@servicetax.net pctl@rediffmail.com