For the period ending 31st Decemebr, 2008 there was an Audit Para in respect of Reimbursement of Expenses for which Service Tax had not been paid. The Audit Para was satisfied when the Assessee paid the ST with interest at the time of Audit itself.
For the period commencing from January, 2011 and ending on December, 2012, Service Tax was not paid in respect of Reimbursement of Expenses ( Cenvat credit claimed ). The assessee has declared it under VCES. Whether the VCES declaration is liable to be rejected on any ground ?
Assessee resolves unpaid Service Tax issue under VCES; declaration accepted if aligned with ST-3 returns. An audit issue arose regarding unpaid Service Tax on Reimbursement of Expenses for the period ending December 2008, which was resolved when the assessee paid the tax with interest during the audit. For January 2011 to December 2012, the Service Tax was again unpaid for similar expenses, but the assessee declared it under the Voluntary Compliance Encouragement Scheme (VCES). Responses in the forum indicated that the declaration would not be rejected, provided the declaration is fair and aligns with the ST-3 returns. The department may not audit unless discrepancies are found. (AI Summary)
TaxTMI 
TaxTMI 
