NOTICE TO AOP - VCES APPLICABILITY

[Satbir singh wahi]

SHOW CAUSE NOTICE RECEIVED BY AOP FOR DEPOSIT OF SERVICE TAX ON RENT OF GODOWNS TO FCI, BUT RENT IS RECEIVED BY INDIVIDUAL MEMBERS UNDER THEIR PAN AND TDS ALSO DEDUCTED INVIDUALLY BY FCI.

1.WHETHER NOW THESE INDIVIDUAL MEMBERS CAN FILE VCES?.

2.WHERTHER TEN LAKH BASIC EXEMPTION IS CLAIMABLE FOR IST YEAR ?

[YAGAY and SUN]

Yes, you can avail the benefit of threshold limit. If the individual member has not crossed the threshold limit then no need to opt for VCES.

[Satbir singh wahi]

Thks Pradeep ji

So the individual members can file VCES after taking 10 lacs exemption for 1st year. As one member has crossed 10 Lacs in 2008.

For period 01.01.2013 to 31.12.13 pay the tax with interest only after getting registration.

AI Summary

VCES applicability for individual members of an AOP: basic exemption claimable; register before paying tax with interest.
An AOP was served a notice for service tax on rent though individual members received rent under their PANs with TDS deducted. Individual members may file under VCES and claim the basic threshold exemption for the first year if their individual receipts do not exceed the threshold; members who have previously exceeded the threshold cannot claim that exemption. Members should obtain registration and pay the tax with interest for the relevant period.