Government may approach big-ticket taxpayers and convince them to opt for the scheme and settle the disputes in the extended timeline.
Even as Modi government’s flagship scheme ‘Sabka Vishwas’ has been a success after resolving the disputes of over 70 per cent eligible taxpayers, the big-ticket disputes still seem to be out of its reach. Earlier this week, the Central Board of Indirect Taxes mentioned that over 73 per cent of eligible taxpayers have availed the Legacy Dispute Resolution Scheme – Sabka Vishwas – and have committed to pay Rs 30,627 crores as tax dues. However, in terms of value, this amount is a small portion of the total disputed amount and this also indicates that the big tickets have yet not opted for the scheme.
This shortfall is likely to be one of the major targets behind the government’s decision of extending the deadline for this scheme by another 15 days. It has also been clearly mentioned that it is a one-time measure and the deadline will not be extended further.
“It is being reported that around 73 per cent of eligible taxpayers have opted for the amnesty scheme, however, to put it in the right perspective, by value, less than 20 per cent of Rs 3,75,000 crores have opted for the scheme. This indicates that big-ticket disputes are still pending to be resolved and tax authorities are not able to unlock the tax component for covering the fiscal deficit,” Rajat Mohan, Senior Partner, AMRG & Associates told Financial Express Online. Government with this extension of a fortnight may approach big-ticket taxpayers and convince them to opt for the scheme and settle the disputes, he added.
The government, in its note, said that there is huge interest amongst the taxpayers for this scheme and thus it would like to ensure that eligible taxpayers who have yet not applied to avail amnesty or relief under this scheme do not miss out due to the last-minute rush. However, the extension also appears to be less to a few tax experts.
“The extension of fifteen days is really welcome although it should have been for three months as due to slowdown, most of the taxpayers are facing a severe cash crunch and are unable to apply even though the scheme is lucrative,” said Pritam Mahure, Founder, Pritam Mahure & Associates.
The major goal behind Sabka Vishwas scheme was cleaning up the disputes related to erstwhile central excise and service tax assesses by settling their outstanding litigations and dues. It also aimed at encouraging non-compliant tax evaders to declare the tax not paid so far and come under the tax net voluntarily.