SERVICE TAX VCES CHECKLIST

SERVICE TAX VCES CHECKLIST

Name of Concern: -
Address of Concern: -
Contact Persons: -
Telephone Numbers: -
Email Ids :-
Nature of service: -
Customer Profile:-
VCES Period

Preliminary checks to verify the applicability of VCES

Sl. No.	Particulars	Yes	No	Checked by	Remarks
1	Whether the Service tax registration has been obtained? (Whether registration has been surrendered before the applicability of VCES Scheme). If not, Ensure that the Service tax registration certificate is obtained before submitting the application.
2	Whether there is a tax due by the assessee. Tax due means: i.                     Any service tax due ii.                   Any service tax payable iii.                  Any amount due under Section 73A iv.                 Any amount payable under Section 73A
3	Whether the tax dues claiming under VCES is pertaining to the period 01.10.2007 to 31.12.2012.
4	Whether for the period of VCES scheme, any returns have been filed. Note down if any. -          Any tax due disclosed in returns but not paid shall not be eligible for paying under VCES scheme.
5	Whether any inquiry/ investigation / Audit pertaining to the relevant period have been initiated before 01.03.2013 and pending. (Investigation can be on any issue) (Verify with the Department correspondence file)
	a.       Ensure that Search order U/s 82 of the chapter is not issued before 1.3.2013 and is pending as on that date
	b.      Ensure that issuance of summons under Section 14 of CEA, 1944 as made applicable to service tax has not been issued before 1.3.2013 and is pending as on that date.
	c.       Ensure that notice is not served U/s 72, U/s 73 or U/s 73A of Finance Act, 1994 requiring production of accounts, documents or other evidence under the Chapter or the rules made thereunder before 1.3.2013 and is pending as on that date.
	d.      Ensure if any other letter is received from the department before 01.03.2013 and is pending, but is not falling under provisions of section 106(2)(a)(iii).
6	Whether any notice or order is issued and concluded for the previous period. If Yes, Note down the issues. -          The tax due for the same issues will not be covered under VCES.
7	In case the investigation is concluded and the SCN has been issued and concluded before 01.03.2013, Ensure whether that the VCES is being filed for issue other than the issue for which SCN is issued.
8	Whether any audit has been not been initiated before 1st March 2013 and is not pending as on that date.
8. a	Initiation of Audit (Yes - VCES possible;  No - VCES not possible) -          Whether departmental officers have not visited the premises before 1st march 2013?
8. b	If the Audit is initiated before 1st March 2013, whether Culmination of Audit is done before 1st March 2013 by way of: -          Closure of Audit File if no discrepancy is found -          Closure of Audit Para by monitoring committee meeting (MCM) -          Approval of MCM, and payment of amount involved by the party in terms of the provisions of Finance Act, 1994 -          Approval of MCM, and issuance of Show cause notice; if the party doesn't agree to the Para raised.
9	If there was any audit conducted in the previousperiod. Note down points raised in the Audit Para's. -          Ensure the concerned "tax dues" filed under VCES is not forming part of Audit Para. -          Ensure that no declaration shall be made by such person in respect of “tax dues” on the same issue for subsequent period.
10	Whether tax dues on any issue that is litigated in the earlier period, under erstwhile provisions (within the period within October 2007 to December 2012). -          Ensure that issue is not made part of the VCES.
Other Checks to ensure the VCES form is not rejected
Sl. No.	Particulars	Yes	No	Checked by	Remarks
11	The declaration Should be filed in 'Form VCES 1' on or before 31.12.2013
12	The form has to be signed and rubber stampaffixed before submitting to the department.
13	CENVAT Credit has not been utilized for paying taxes due. -          Ensure CENVAT credits are not utilized since VCES application shall be eligible for rejection. -          The CENVAT credit can be Accumulated and adjusted towards subsequent liability from 01.01.2013.
14	Ensure that the Subsequent Liabilityw.e.f. 01.01.2013 has been discharged and regularized in terms of filing the returns as well before filing the application.
Other Miscellaneous Checks
Sl. No.	Particulars	Yes	No	Checked by	Remarks
15	Whether any tax pertaining to the period Oct 2007 to Dec 2012 is paid before 01.03.2013. -          Ensure that such a tax, Interest and penalty if any paid, has not been shown in the VCES application since that amount falls out of VCES scheme.
16	Whether separate calculation sheets have been attached for every service and every quarter/ half year. -          Ensure it is shown separately along with proper calculations attached thereto.
17	Ensure the amount paid under this Scheme is exactly equal to the amount as calculated and attached along with the form. -          Any amount paid less may amount to rejection of the application -          Any amount paid more will not be eligible for the refund. -          Amount mentioned in the computation sheet Should be matched with audited financials
Working Checks – as Service Provider
Sl. No.	Particulars	Yes	No	Checked by	Remarks
18	Make a list of all the taxable services provided by the co; and check for the exemption under mega exemption notification or any other notification.
19	Verify the income statement to see whether for any income liable under the ambit of service tax.
19	Verify the ledger accounts of the clients on whom the service invoices are raised to ensure that none of the transactions is missed out from service tax liability.
21	Verify the collections on account of revenues from output services if any, and service tax on same by going through the bank/cash books and bank statements. Check whether any advance received but invoice is not raised and ensure the same is brought under the net of service tax.
22	Verify the receivables statements (Debtors ledger, Advances received etc.) to scan the items, which may come under the purview of service tax.
23	Check whether any book adjustments/ debit note / credit note raised on the customers, if yes check the service tax implication on the same.
24	Verify of Invoices/ Bills/ Debit Notes and comparison with the contracts/ Purchase Order/Works Order entered with the clients and check the implication of service tax on the same.
25	Check whether reimbursements are received from the clients and whether deduction has been claimed under pure agent, if yes whether all the conditions under pure agent are satisfied. If not whether the same is included for discharging service tax.
23	If any exemption or abatement claimed by the co; if yes check whether all the conditions mentioned in the notification is followed by the co. If yes, then provide the exemption and abatement.
24	Check whether any services provided by the company falls under the negative list (w.e.f. 1st July 2012). If yes, exclude the same from service tax liability for such service.
25	Check Whether any abatement is available for the Services provided by the client.
26	Check whether any exports are made. In case if it relates to transaction prior to 1.07.2012, Ensure that it is not coming under domestic sales by referring to Export of Service Rules and in case the transactions relates to the period post to 01.07.2012, refer Place of provision rules, 2012.
27	In relation to exports, ensure that the considerations are received within 1 year from the date of exports or within the extended time granted by RBI. a)      If no, and if the exports are done in between 01.07.2011 and 30.06.2012, then consider the service tax liability on the monies not received on exports. b)      If no, and transactions doesn’t fall in the specified date reverse the credits availed proportionately in terms of Rule 6 of CCR
28	Check whether consideration on any exports are received in INR. If yes, then consider the same as liable for Service tax.
29	Verification of eligibility of CENVAT credits on inputs and capital goods in availment for the period concerned, by verifying the sample invoices for each of the variety of transactions involved. Advising the client on the issues above. Any credits pertaining to the VCES period, not availed previously can be availed and utilized only for the subsequent period after VCES period.
30	Ensure any ineligible credits availed has to be reversed and only the eligible credits have to be carried forward to utilize it for the post VCES period.
31	Ensure any ineligiblecredits utilized for the period of forming part of the VCES has to be reversed and added to the computation of VCES and have to be discharged.
32	Compute service tax liability on the list of services as mentioned above.
33	Calculate Net Liability of Service Tax by deducting Service tax already paid for the relevant period.
	Working Checks – as Service Receiver
34	Previous to  01.07.2012, verify the expense transactions and consider if any reverse charge applicability on -          GTA -          Sponsorship service -          Import of service
35	Applicable w.e.f. 01.07.2012, Verify expense transactions and consider if any reverse charge and joint charge applicability as mentioned in the Notification 30/2012 ST for considering in VCES.