The Indian Finance Ministry has wanted to clarify concerns over its Service Tax Voluntary Compliance Encouragement Scheme (VCES) by commenting on issues raised by industry representatives. The Finance Minister recently settled a series of communicating sessions with representatives of those affected by the pilot.
Under the scheme, the Government will waive any interest and penalties associated with the non-filing of service tax returns between October, 2007 and December, 2012, providing at least 50 percent of the tax owed is paid on or before December 31, 2013. The remaining tax due must be paid on or before June 30, 2014. After that date, and up to December 31, 2014, the VCES will continue to operate, but interest will be payable on the outstanding amount
