Get Discharge
Certificate Quickly under VCES
[Service Tax Circular No. 176 dated 20th
January 2014]
Subject:
Clarification regarding issue of Discharge Certificate under VCES and availment of CENVAT credit.
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.
F.
No. B1/19/2013-TRU (Pt)