Under the government scheme, those who make voluntary announcements before 31 December 2019 for their unpaid dues will not attract any penalty or interest.
The deadline for announcing tax dues under Sabka Vishwas dispute resolution scheme is inching closer. Under the government scheme, those who make voluntary announcements before 31 December 2019 for their unpaid dues will not attract any penalty or interest. Live since 1 September 2019, the Sabka Vishwas scheme provides one-time window to eligible persons to declare their tax dues and pay the same in accordance with the provisions. Dues announced during the period will be immune to penalty, interest or any other proceedings under the Central Excise Act and Finance Act.
Announced in 2019 by Finance Minister Nirmala Sitharaman, the scheme aims to settle pending disputes of Service Tax and Central Excise. “A mid-term review reveals that a total amount of Rs 5,472 crore inclusive of pre-deposit amount of Rs 4,225 crore has already been declared under the scheme, sources said,” PTI reported last week. More than Rs 5,000 crore worth dues have been declared so far under the same scheme and the Central Board of Indirect Taxes and Customs (CBIC) has asked principal chief commissioners to be proactive in persuading eligible taxpayers to take benefit of Sabka Vishwas Scheme. The government is making efforts towards having as many declarations as possible before the scheme expires.
The government had observed that a total of Rs 3.6 lakh crore is locked up in over 1.8 lakh cases under Service Tax and Central Excise put together. The information of eligible taxpayers is available with the Principal Chief Commissioners or Chief Commissioners of CGST, who have been directed to contact these taxpayers, PTI reported sources as saying.
Sabka Vishwas scheme covers cases where “an enquiry, investigation or audit where the amount is quantified on or before 20 June 2019”, or an amount in arrears is pending. In cases of outstanding arrears of revenue, if the amount of duty is less than or equal to Rs 50 lakh, 60% of the tax dues will be waived off. In cases where the amount of duty is more than Rs 50 lakh then 40% of the tax dues will be waived off.