Tax resolution, amnesty scheme
Govt. aims to eliminate bulk of pending cases, provide partial amnesty on dues
SABKA VISHWAS-LEGACY DISPUTE RESOLUTION SCHEME, 2019
The government has announced a new scheme aimed at eliminating the bulk of pending tax dispute cases besides providing partial amnesty to those having tax dues.
Finance Minister Nirmala Sitharaman had, in her Budget speech, announced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. This scheme will be operationalised from September 1 with the window being open till December 31.
The Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019, which was announced in the Union Budget 2019-20, has now been notified. It will be operationalized from 1st September 2019 and would continue till 31st December 2019.
- Government expects the Scheme to be availed by large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST so they can focus on GST.
- The two main components of the Scheme are dispute resolution and amnesty.
- The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Taxthat are subsumed in GST and are pending in litigation at various forums.
- The amnesty component of the Scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law.
- For all the cases pending in adjudication or appeal – in any forum – this Scheme offers a relief of 70% from the duty demand if it is Rs.50 lakhs or less and 50% if it is more than Rs. 50 lakhs.
Source: The Hindu