Amnesty and dispute resolution are the two main components of this scheme. There are many cases related to service tax and excise duties that have been subsumed in the GST now.
Taxpayers can end their pending disputes relating to legacy service tax and central excise cases under “Sabka Vishwas – Legacy Dispute Resolution Scheme,” which is going to be operationalised from 1st September 2019. The scheme will continue until the end of the calendar year, according to a statement by the Ministry of Finance. Finance Minister Nirmala Sitharaman announced the scheme in the Union Budget 2019. It is expected that a large number of taxpayers will be substantially benefited by the scheme after they will resolve their disputes with the tax administration is cleared, going by the statement. The scheme also aims to free a large segment of the taxpayers from the legacy taxes.
Amnesty and dispute resolution are the two main components of this scheme. There are many cases related to service tax and excise duties that have been subsumed in the GST now. The scheme aims to clear the pending litigation on such cases. The scheme also offers the taxpayers to pay the outstanding tax without facing any consequences under the law.
What makes the scheme most attractive is that it provides relief in the tax dues with full waiver of interest, fine and penalty. Also, there is a complete amnesty from prosecution. The scheme offers relief of 70 per cent from the duty demand if it is Rs 50 lakhs or less and 50 per cent, if it is more than Rs 50 lakhs. Equal relief is available for cases under investigation and audit, where the duty involved is quantified and has been informed to the party or admitted by him in a statement on or before June 30, 2019.
Finally, the person availing the scheme will only be required to pay the full amount of disclosed duty. Excise duty, service tax and legacy tax were included in the GST from July 2017, leaving many taxpayers with disputes with the tax administration. The scheme aims to clear maximum such cases to mark a new beginning in the new year.
Published On : 23-08-2019
Source : Financial Express
