Smt. Nirmala Sitharaman
Hon. Union Minister of Finance and Corporate Affairs
Government of India
North Block
New Delhi

SUBJECT: Memorandum seeking a special measure for the opening of Limited Time Window to process of Payment of Taxes under Sabka Vishwas – (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS)

Hon’ble Madam,

You announced a wonderful scheme in the name of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. It was open for eligible assesses to file a declaration under the scheme to take benefit from the legacy dispute resolution.  The scheme was applicable for his The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and more than forty acts comprising to every walk of life predominantly for MSME sector.

You were kind enough to extend the dates for payment of the agreed taxes based on the declarations of the desirous assesses. There were eligible persons required to file an electronic declaration in Form SVLDRS 1.Auto acknowledgements bearing the system for all future references generated a unique reference number. The declarations were automatically routed to the Designated Committee, and within sixty days of the filing of a declaration, the assessee got the final decision taken in acceptance or rejection.

There were many benefits available under the scheme which included the total waiver of interest and penalty, Immunity from prosecution and relief of specific duty/tax in demands. The declarants were to pay electronically within 30 days of the statement issued by the Designated Committee. Tax Dues’ was the total outstanding duty/tax demand. ‘Tax Relief’ is the concession the scheme offers from the total outstanding duty demand. Hence the scheme was appreciated by all, especially the MSME sector.

Requested prayers have the potency to generate thousands of the Crores without any fresh labour by opening the window to receive the tax payments. This measure will be in tune with the Government directives to grant the relief due to Covid-19 and to help the citizens to have an ease to do business. Your attention is drawn towards the following:

1. You are aware that there was an extension of SVLDRS till 30th June 2020. However, during three months extension, i.e. April 2020 to June 2020, Among these months, few were having total lockdown, and many of the states carried their lockdown till the last day of the scheme. 100% lockdown in April and most of the states were lockdown till 30th June and also beyond that date. So extension has not given a fair opportunity to the assessees willing to go for the SVLDRS scheme.

2. Everyone has suffered a huge financial crisis due to COVID19 pandemic, and the assessees are also part and parcel of the economic force which faced the cash crunch due to this unexpected crisis. Many of the assessees failed to manage the funds in a short time of the deadline. This was a very genuine problem faced by all.

3. Approximately 2000 to 3000 Crores of taxes could be collected by opening the payment window for a month as the only pendency at assessees part were the payment of agreed taxes. As per business circles, thousands of Crores are pending to collect as on 01.07.2020 under Sabka Vishwas legacy Dispute scheme. The Government should not ignore such amount of revenue which may play an important role in a fight against Covid-19

4. It is learnt that many of the assessees have already moved their application mentioning their willingness to pay the taxes now a limited period opening may give them a chance to join the national development regime under the able guidance of the Prime Minister Narendra Modi.

5. Many of the assessees were deprived of availing the scheme due to the negligence of authorities. Rather, a review committee could be established to see the cases rejected by the authorities. That will also add to the Government exchequer.

6. The Government intended to mitigate the long-pending dues & litigation, under SVLRDS, those assessees who have filed their declaration but failed to pay the taxes due now because of COVID-19 have a good demand to open up a window for a specific period to pay for their declared amount. The assessees are not wilful defaulters, but non-payment of agreed sums is due to Liquidity crunch on accounts of Covid-19 only. Hence they deserve a helping hand.

7. Further, Due to Technical Glitches, many payments under SVLDRS returned to assesses banking accounts after the deadline. Such cases also require another chance to pay for the determined and agreed on sums.

8. The said extension will prove to be a life-saving measure for MSME and to those having small businesses with low profit. They suffered huge loss due to Covid-19. The entire so-called defaulter under the SVLDRS belongs to MSME sector which requires your extending helping hand.

So, It is prayed that

A. A window to receive the agreed Taxes under SVLDRS scheme be open for a month. Which would help the businessmen, besides increasing the revenue collection?

B. Open up the whole scheme for two months again to achieve the very purpose of the scheme to mitigate the long-pending dues & litigation, under SVLRDS.

I request you to consider the request kindly.

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Author was Member of ICAI- Capacity Building Committee 2010-11 and ICAI- Committee for Direct Taxes 2011-12 and can be reached at email [email protected] or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA) View Full Profile

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  1. Nitin Talavia says:

    Iam a small contractor in civil engineering with ongc ankleshwar Gujarat i have already paid pre deposit to service tax department and there is no dues on me but In svldrs From 3 R’s 111600/dues show in Form 3 so why not me granted tax relief of 30%

  2. M Dattatri Rai says:

    Sir we are also small self employed service providers required this opportunity we could not accessed due to pendamuc effect and financial crunch.


    your appeal is well-appreciated hope the govt accept
    your request
    in spite of govt having issued a circular and collected information by 21.7.20

  4. girish maru says:

    Department had collect Consent for Payment before Due date if said due date is extended and all data taken by the range officer from Assessee who had not paid before 30.06.20. Still no clarification for data collected today it is 13.09.20. also Department started Assessment proceeding who had not paid Taxes after issuance of SVLDRS-3.

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October 2021