According to an official announcement, the preliminary estimates indicated that about 66,000 declarations were filed by the litigants under the scheme which closed on January 31, aggregating to an amount of Rs 4,900 crore. As a result of these declarations, the exchequer would be richer by about Rs 2,000 crore.

Although the mood is not very jubilant in the finance ministry, the total realisation worked out to be more than what revenue secretary Javed Chaudury had initially estimated. The revenue secretary had pegged that the figure of total revenue yield at "not less than Rs 1,500 crore."

However, the confusion regarding the extension of the scheme and the statement of minister of state for revenue R Jaganathan that KVSS would be a annual feature dampened the spirit. Even thelarge public sector companies does not seem to have fully taken advantage of the scheme to settle their tax disputes. The ministry, it may be recalled, at one point of time was hoping to net as much as Rs 3,000 crore to partly cover up for subdued realisation on the indirect tax front.

According to the latest figures available with the revenue department, about 47,000 declarations were filed under the direct tax side valued at Rs 2,800 crore. On the indirect tax front, more than 18,500 declarations were filed for an aggregate amount of Rs 2,100 crore. The revenue expected to be accrued to the government on the basis of these declarations would be about Rs 2,000 crore.

The Mumbai zone, the official press release said, performed well where 10,000 declarations were filed in both direct and indirect tax sides aggregating to an amount of Rs 1,400 crore.

The government, on its part, considerably modified the KVSS which was announced in the budget by finance minister Yashwant Sinha with the intention ofreducing the tax litigation and recovering the money locked up in disputes. Initially the scheme was to end on December 31, 1998, the government on request from the various interest groups extended the tenure of the scheme by one month. This was done through the ordinance promulgated by the President.

During the course of the scheme, the government extended the scope of the scheme on the basis of feedback obtained from litigants and tax consultants and the suggestions of the Parliamentary committees. Firstly the scheme was made applicable to departmental appeals, which constituted a large percentage of litigants. Secondly, the scope of the scheme was enlarged to cover co-notices (directors and employees of the firms and companies against whom the principal demand was made). This was done to ensure that all the cases relating to a particular demand was terminated in one sweep.

The officials, however, regretted that the scheme failed to get due support of professional tax consultants and charteredaccountants. Unfortunately, a section of them perceived the scheme as a threat to their future incomes.