Economy

Extension Given to Legacy Scheme to Close Disputes Under Erstwhile Indirect Taxes

A press note by CBIC released dated 31 December 2019 has provided an extension to the Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The last date to avail the scheme is extended from 31 December 2019 to 15 January 2020, by fifteen days.

A total of 1.84 lakh taxpayers are eligible to avail the scheme, out of which, close to 73% of them have joined the scheme to pay their dues worth Rs.30,627 crores as per the press note. A total sum of Rs.3.6 lakh crore is blocked at several quasi-judicial, appellate and judicial forums under both the central excise and service tax laws. 

Accordingly, the taxpayer’s overwhelming response to the scheme was the reason for this extension, cites the press note. However, the press note adds that this is only a one-time extension and will be a final call for the interested taxpayers. The Finance Ministry called upon all the eligible taxpayers to utilise the benefits of the scheme and ensure that their pending disputes be closed.

Also Read: CBIC clarifies the applicability of the scheme on pre-GST legacy cases

Under the scheme, the taxpayer can pay off their tax arrears and defaults without the interest or penalty. Further, it provides legal protection for the taxpayers from prosecution for such disputes. It allows concession in the tax or duty by up to 70% of the total arrears, depending upon the extent of tax dues and for non-fraud cases only.

The Union FM Nirmala Sitharaman had launched the Sabka Vishwas Scheme while presenting the Union Budget 2019-20. The objective of the scheme is for settling pending disputes of service tax and central excise.

Not only this, but it enables non-compliant tax defaulters to come forward and clear pending tax dues voluntarily. It provides a window to eligible persons to report and pay their tax dues in compliance with the tax law and rules thereof.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in

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