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Sabka Vishwas: Last day to close your pending excise and service tax disputes is January 15

Satya Sontanam | Updated on January 14, 2020 Published on January 14, 2020

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Tax experts say that an application under the scheme can be filed electronically and is very simple

January 15 is the last day for the tax payers to avail benefits of a tax amnesty scheme, Sabka Vishwas – (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS), which was in operation since September 1, 2019.

This is the final opportunity for the tax-payers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST.

On the back of good response seen for the scheme, the Government had once extended the due date from December 31, 2019 to January 15, 2020. Considering the increased interest from assessees, tax experts believe that there is no harm in extending the due date again.

What is it?

SVLDRS was introduced in the last budget with an intention to focus on GST by clearing all the litigations and cases pending with respect to previous tax regime. It is a one-time measure for liquidation of past disputes of central excise and service tax as on June 30, 2019. And also to provide an opportunity for voluntary disclosure option to non-compliant tax payers.

Benefits include complete waiver of interest and penalty and in some cases, relief of up to 70 per cent of the tax liability or duty demanded. Karthik Thayi, Partner at BSKS CA firm says, -“the scheme provides a great opportunity at this point of time when penalisation for non-compliance is stringent. In many cases, interest and penalty is higher than the principal tax amount due.”

Vishal Raheja, deputy general manager (DGM), Taxmann, says “this is a golden chance and the tax payers should come forward and participate as relief from tax dues would be at least 25 per cent. If the details are ready, one day is more than enough to file an application”

Simple process

The taxpayer can apply for this scheme from https://cbic-gst.gov.in. The taxpayer already registered under CE / ST (Central Excise & Service Tax) can login and fill Part-B of SVLDRS Form-1. The unregistered taxpayer can register himself by filling Part-A of SVLDRS Form -1.DRS, 2019.

By clicking the submit button, Form SVLDRS-1 will be submitted to concerned Committee. ARN will generated

and the taxpayer will be informed via email and SMS.

In case of any queries, an assessee can contact toll free no. 1800-1200-232 or email Cbecmitra.helpdesk@icegate.gov.in

Government sources say that “applicant need not submit any documents in the initial stage and the application filling process takes just few minutes.”

Extension on cards?

Many tax experts believe that extension of due date for the scheme will be a win-win for both tax payers and government and does more good than harm. Gautam Khattar, Partner, Indirect Taxes, PwC, says – “One of the reasons for the success of the scheme is its simplified process. Extension of due date will help destress the Courts by way of reduction in the long pending disputes. There should not be any moral hazards. Similar scheme should be announced in Budget 2020 for pending disputes under Customs.”

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Published on January 14, 2020
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