CII, HRAI & Central Excise Commissionerate hold workshop to encourage Voluntary Compliance

By 1 2 1 News Reporter

Chandigarh 25^th July:--- Confederation of Indian Industry (CII), Hotel and Restaurant Association of Northern India in association with Commissionerate of Central Excise & Service Tax, Chandigarh  organised an interactive session highlighting the Voluntary Compliance Encouragement Scheme (VCES) and key issues of Indian hospitality industry at CII headquarters here today.

Parminder Singh Sodhi, Commissioner, Central Excise Commissionerate, Chandigarh stressed that the VCES is a liberal and trade-friendly measure. He also urged businesses to take advantage of its benefits, and avoid the potential payment of interest and penalties. He asked the representatives of the industry to ask their members to avail the benefits under VCES 2013 and pay their due taxes and avoid interest, penalty and prosecution under Service Tax laws.

Mrs. Rachna Singh, Assistant Commissioner of Service Tax Division, Chandigarh also addressed the major concerns of the hoteliers in the region. Giving detailed information about the Voluntary Compliance Encouragement Scheme (VCES), she said. "The voluntary compliance encouragement scheme (VCES) will make the defaulters fall in line.  The central government has introduced the scheme to encourage defaulters to pay service tax dues voluntarily without any penalty, interest and prosecution. To encourage voluntary compliance by service providers, no inquiry or investigation will be conducted against a declarant, if any individual comes forward to make truthful declaration and also gets immunity from interest and penalty."

Manmohan Singh, Chairman, CII, Chandigarh, said, "Service sector contributes about 65% of the GDP but the number of service tax payers is quite less. Therefore, this scheme was launched to bridge this gap and allow defaulting persons and companies to disclose their tax liabilities and file their service tax returns."

The representatives of the trade industry explained their concerns which mainly included clarity regarding initiation of audit, the eligibility criteria under the scheme and other clarifications.  Some of the representatives suggested that a negative list of all those categories who are not eligible under this scheme may be prepared and circulated by the department so that all concerned may know in advance whether they can avail the benefit under VCES 2013 or not. Other issues of the service sector like double taxation, creditbilling, risk management were also deliberated upon.