Circular No. 176/2/2014
– ST, F. No. B1/19/2013-TRU (Pt), dated 20.01.2014
Clarification
regarding issue of Discharge Certificate under VCES and availment of CENVAT
Credit - regarding.
Trade and Industry has sought
clarification as to whether the first installment of tax dues paid under
Voluntary Compliance Encouragement Scheme (VCES), 2013 would be available as
Cenvat Credit immediately after payment or Cenvat credit can be availed only
after payment of tax dues in full and receipt of Acknowledgement of Discharge
in form VCES-3.
2. The issue has been examined. As per VCES, under
Section 108 (2) of the Finance Act, 2013, a declaration made under Section 107 (1)
shall become conclusive only upon issuance of acknowledgement of discharge
under Section 107 (7). Further, in terms of Rule 7 of the Service Tax VCES
Rules 2013, the acknowledgement of discharge in form VCES-3 shall be issued
within a period of 7 working days from the date of furnishing of details of
payment of tax dues in full along with interest, if any, by the declarant.
3. It would be in the interest of VCES declarants to
make payment of the entire service tax dues at the earliest and obtain the discharge
certificate within 7 days of furnishing the details of payment. As already
clarified in the answer to question No.22 of FAQ issued by CBEC dated
08.08.2013, eligibility of CENVAT credit would be governed by the CENVAT Credit
Rules, 2004.
4. Chief Commissioners are also advised that upon
payment of the tax dues in full, along with interest, if any, they should
ensure that discharge certificate is issued promptly and not later than the stipulated
period of seven days.
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