Bangalore/Hyderabad: Finance Minister P today said service tax amnesty scheme VCES is a lifetime opportunity as such offers are unlikely to come again in the next 20 years, even as he warned that evaders would eventually be “identified and reached”.
“Countdown has begun and the last date is December 31. Government has made a fair and generous offer, a one-time offer that is not likely to come your way for at least a couple of decades. Therefore, it is in the best interest of everyone to take advantage of the offer,” he said.
Service Tax Voluntary Compliance Encouragement Scheme (VCES) was introduced from May 10 as a one-time amnesty scheme to pay service tax dues for the period from October 1, 2007, to December 31, 2012, without interest and penalty.
“The last amnesty scheme was announced in 1997 called VDIS, it is now 16 years later that we have launched such a scheme for service tax,” he said at a meeting in Bangalore on VCES with representatives of trade, industries.
“If anyone feels another scheme will come next year, I'm afraid they are mistaken. These schemes cannot be announced every year. There should be a good reason why we have to do so.”
Addressing a similar meeting in Hyderabad later in the day, the Finance Minister said: “If you think that a scheme will come again next year or a scheme will come in 2015, you are wrong.
“Such schemes cannot be announced every year. There is a Supreme Court judgement on VDIS (which) actually ties up our hands in announcing a scheme on the lines of VDIS (Voluntary Disclosure of Income Scheme).”
“That is why we have to modulate the scheme, so that it does not violate the directions of the Supreme Court. This is a once in a lifetime opportunity (and) certainly will not come for the next 20 years,” Chidambaram said.
