Article explains Applicability of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, Eligibility for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, Relief under the Scheme, Procedure to file forms under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and Status of cases/ appeal pending before the authorities.
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS 2019)
Keeping in view of ease of doing business and moving on with the GST regime, our Hon’ble Finance Minister came up with the Sabka Vishwas-(Legacy Dispute Resolution) Scheme, 2019 (hereinafter to be referred as the “Scheme” while presenting the Union Budget on 5th July 2019. Under this scheme, the eligible person can avail the benefit upto 70% of total tax payable in respect of Excise duty, service tax etc. The window under the Scheme is open from 1st September 2019 to 31st December 2019.
To make it understand, the said scheme is broadly divided into following categories:
The Scheme shall be applicable on tax/cess/duty in respect of:
Under this Scheme, there are five conditions, by following of which a person may avail the benefits:
The following relief has been given under the Scheme:
|Cases pending as per above Point No. 1 to 3||If amount involved in the case is less than Rs. 50 lakhs then 30% of tax dues shall be paid;
If amount involved in the case is more than Rs. 50 lakhs then 50% of tax dues shall be paid;
|In respect of above Point No. 4||If amount involved in the case is less than Rs. 50 lakhs then 40% of tax dues shall be paid;
If amount involved in the case is more than Rs. 50 lakhs then 60% of tax dues shall be paid;
|In respect of above Point No. 5||100% of tax dues shall be paid|
The constituted designated committee will verify the application and if they find the application and amount of tax/duty incorrect then a notice in “SVLDRS-2”will be issued within 30 days of the application and asked the taxpayer to present before the committee, after giving an opportunity and being satisfied, they will issue the statement in “SVLDRS-3”;
All the cases/ appeal pending before the authorities (other than High Court/Supreme Court) shall be deemed as withdrawn.
In case of appeal or writ pending before High Court/Supreme Court, an application for withdrawal of the said appeal/writ shall be made and the proof of the withdrawal shall be annexed with the Form SVLDRS-3.
At the end, it is opined that the Scheme can be fruitful in de-clogging the pending cases before the authorities and helpful in reducing the burden of payment of tax, penalties and prosecutions on the taxpayer. After making declaration and payment under said Scheme within stipulated time period, the taxpayer will be free from any prosecution and penalties.
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