CHAPTER VI
SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013
94. This Scheme may be called the Service Tax Voluntary Compliance Encouragement Scheme,
2013.
95. (1) In this Scheme, unless the context otherwise requires,—
(a) “Chapter” means Chapter V of the Finance Act, 1994;
(b) “declarant” means any person who makes a declaration under sub-section (1) of section 97;
(c) “designated authority” means an officer not below the rank of Assistant Commissioner of
Central Excise as notified by the Commissioner of Central Excise for the purposes of this Scheme;
(d) “prescribed” means prescribed by rules made under this Scheme;
(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.
(2) Words and expressions used herein and not defined but defined in the Chapter or the rules
made thereunder shall have the meanings respectively assigned to them in the Chapter or the rules
made thereunder.
96. (1) Any person may declare his tax dues in respect of which no notice or an order of determination
under section 72 or section 73 or section 73A of the Chapter has been issued or made before the 1st
day of March, 2013:
Provided that any person who has furnished return under section 70 of the Chapter and disclosed
his true liability, but has not paid the disclosed amount of service tax or any part thereof, shall not be
eligible to make declaration for the period covered by the said return:
Provided further that where a notice or an order of determination has been issued to a person in
respect of any period on any issue, no declaration shall be made of his tax dues on the same issue
for any subsequent period.
(2) Where a declaration has been made by a person against whom,—
(a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or
short-paid has been initiated by way of —
(i) search of premises under section 82 of the Chapter; or
(ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable
to the Chapter under section 83 thereof; or
(iii) requiring production of accounts, documents or other evidence under the Chapter or the
rules made thereunder; or
(b) an audit has been initiated,
and such inquiry, investigation or audit is pending as on the 1st day of March, 2013, then, the designated
authority shall, by an order, and for reasons to be recorded in writing, reject such declaration.
97. (1) Subject to the provisions of this Scheme, a person may make a declaration to the designated
authority on or before the 31st day of December, 2013 in such form and in such manner as may be prescribed.
(2) The designated authority shall acknowledge the declaration in such form and in such manner as
may be prescribed.
(3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent. of
the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority.
Special
provision for
taxable
services
provided by
Indian
Railways.
Short title.
Definitions.
Person who
may make
declaration of
tax dues.
32 of 1994.
Procedure for
making
declaration
and payment
of tax dues.
1 of 1944.
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(4) The tax dues or part thereof remaining to be paid after the payment made under sub-section (3)
shall be paid by the declarant on or before the 30th day of June, 2014:
Provided that where the declarant fails to pay said tax dues or part thereof on or before the said
date, he shall pay the same on or before the 31st day of December, 2014 along with interest thereon,
at such rate as is fixed under section 75 or, as the case may be, section 73B of the Chapter for the
period of delay starting from the 1st day of July, 2014.
(5) Notwithstanding anything contained in sub-section (3) and sub-section (4), any service tax which
becomes due or payable by the declarant for the month of January, 2013 and subsequent months
shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for
delay in payment thereof, shall also be payable under the Chapter.
(6) The declarant shall furnish to the designated authority details of payment made from time to
time under this Scheme along with a copy of acknowledgement issued to him under sub-section (2).
(7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable
under the proviso to sub-section (4) the designated authority shall issue an acknowledgement of
discharge of such dues to the declarant in such form and in such manner as may be prescribed.
98. (1) Notwithstanding anything contained in any provision of the Chapter, the declarant, upon
payment of the tax dues declared by him under sub-section (1) of section 97 and the interest payable
under the proviso to sub-section (4) thereof, shall get immunity from penalty, interest or any other
proceeding under the Chapter.
(2) Subject to the provisions of section 101, a declaration made under sub-section (1) of section 97
shall become conclusive upon issuance of acknowledgement of discharge under sub-section (7) of
section 97 and no matter shall be reopened thereafter in any proceedings under the Chapter before
any authority or court relating to the period covered by such declaration.
99. Any amount paid in pursuance of a declaration made under sub-section (1) of section 97 shall
not be refundable under any circumstances.
100. Where the declarant fails to pay the tax dues, either fully or in part, as declared by him, such
dues alongwith interest thereon shall be recovered under the provisions of section 87 of the Chapter.
101. (1) Where the Commissioner of Central Excise has reasons to believe that the declaration
made by a declarant under this Scheme was substantially false, he may, for reasons to be recorded in
writing, serve notice on the declarant in respect of such declaration requiring him to show cause why
he should not pay the tax dues not paid or short-paid.
(2) No action shall be taken under sub-section (1) after the expiry of one year from the date of
declaration.
(3) The show cause notice issued under sub-section (1) shall be deemed to have been issued
under section 73, or as the case may be, under section 73A of the Chapter and the provisions of the
Chapter shall accordingly apply.
102. For the removal of doubts, it is hereby declared that nothing contained in this Scheme shall be
construed as conferring any benefit, concession or immunity on the declarant other than the benefit,
concession or immunity granted under section 98.
103. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government
may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date
on which the provisions of this Scheme come into force.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before
each House of Parliament.
104. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying
out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any
of the following matters, namely:—
(a) the form and the manner in which a declaration may be made under sub-section (1) of
section 97;
(b) the form and the manner of acknowledging the declaration under sub-section (2) of section 97;
Immunity
from penalty,
interest and
other
proceeding.
No refund of
amount paid
under the
Scheme.
Tax dues
declared but
not paid.
Failure to
make true
declaration.
Removal of
doubts.
Power to
remove
difficulties.
Power to
make rules.
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54 of 1963.
(c) the form and the manner of issuing the acknowledgement of discharge of tax dues under
sub-section (7) of section 97;
(d) any other matter which is to be, or may be, prescribed, or in respect of which provision is to
be made, by rules.
(3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as
may be after it is made, before each House of Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the rule or both Houses agree that the rule should not
be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case
may be; so, however, that any such modification or annulment shall be without prejudice to the validity
of anything previously done under that rule.
CHAPTER VII
COMMODITIES TRANSACTION TAX
105. (1) This Chapter extends to the whole of India.
(2) It shall come into force on such date as the Central Government may, by notification in the
Official Gazette, appoint.
(3) It shall apply to taxable commodities transactions entered into on or after the commencement of
this Chapter.
106. In this Chapter, unless the context otherwise requires,—
(1) “Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Incometax Act, 1961;
(2) “Assessing Officer” means the Income-tax Officer or Assistant Commissioner of Income-tax
or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional
Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the
powers and functions conferred on, or assigned to, an Assessing Officer under this Chapter;
(3) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of
Revenue Act, 1963;
(4) “commodities transaction tax” means tax leviable on the taxable commodities transactions
under the provisions of this Chapter;
(5) “commodity derivative” means––
(i) a contract for delivery of goods which is not a ready delivery contract; or
(ii) a contract for differences which derives its value from prices or indices of prices––
(A) of such underlying goods; or
(B) of related services and rights, such as warehousing and freight; or
(C) with reference to weather and similar events and activities,
having a bearing on the commodity sector;
(6) “prescribed” means prescribed by rules made under this Chapter;
(7) “taxable commodities transaction” means a transaction of sale of commodity derivatives in
respect of commodities, other than agricultural commodities, traded in recognised associations;
(8) words and expressions used but not defined in this Chapter and defined in the Forward
Contracts (Regulation) Act, 1952, the Income-tax Act, 1961, or the rules made thereunder, shall
have the meanings respectively assigned to them in those Acts.
107. On and from the date of commencement of this Chapter, there shall be charged a commodities
transaction tax in respect of every taxable commodities transaction, being sale of commodity derivative,
at the rate of 0.01 per cent. on the value of such transaction and such tax shall be payable by the
seller.
74 of 1952.
43 of 1961.
Extent,
commencement
and
application.
Definitions.
Charge of
commodities
transaction
tax.
43 of 1961.
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