This Tax Alert summarizes the recent order passed by the Allahabad High Court in the case of M/s K. Anand Caterers vs. UoI & Ors. [AIT-2013-162-HC].
The writ petition was filed in respect of the recovery proceedings initiated under section 87 of the Finance Act, 1994, when an application had been made for the payment of the defaulted service tax amount under the Service Tax Voluntary Compliance Encouragement Scheme (VCES), 2013.
The Allahabad High Court in its interim order, held that, when the liability of service tax is admitted and application has been made under the VCES, 2013 on 20 June 2013, then no recovery proceedings could be taken until the application is disposed of, and the VCES, 2013 permits the assessee to deposit tax in two instalments i.e., to pay 50% by 31 December 2013 and remaining 50% by 30 June 2014.
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