Clause 98 - Immunity from penalty, interest and other proceeding

Immunity from penalty protects declarants who pay declared service tax dues and interest under the voluntary compliance scheme.

A voluntary compliance scheme permits persons to declare and pay outstanding service tax liabilities and required interest for the stated period; upon payment the declarant obtains immunity from penalty, interest or other proceedings under Chapter V. A declaration becomes conclusive on issuance of an acknowledgement of discharge and, subject to section 101, matters covered by that declaration shall not be reopened in any proceeding under the Chapter for the declared period.