Recently the government announced that the indirect tax dispute resolution scheme which was discussed in the budget session will be coming from 1st September and will be live till 31st December.
As per the statement released, “Government expects the scheme to be availed by a large number of taxpayers for closing their pending disputes relating to legacy service tax and central excise cases that are now subsumed under the GST so they can focus on the GST.”
It is now known that there will be 2 factors within the scheme including amnesty and dispute resolution. The dispute resolution will be fast-forwarding the disputes under the tax laws.
While the amnesty scheme under GST will give the chance to the taxpayers to clear all the pending dues and taxes to further set themselves free from the legal issues.
Also, the amnesty will be the best way to get through the income tax department compliance giving all freedom from the interest, fine and penalty with no liability of interest, fine or penalty and even no prosecution whatsoever.
As per the statement, “For all the cases pending in adjudication or appeal in any forum, this scheme offers relief of 70% from the duty demand if it is Rs 50 lakh or less and 50% if it is more than Rs 50 lakh.”
Also, the department will offer relief of 60% of the duty of no appeal and if less than 50 lakhs and 40% for more than 50 lakhs. Also, the disclosed duty will have to be paid when disclosure is made.
The statement also mentioned, “As the objective of the scheme is to free a large segment of taxpayers from the legacy taxes the relief given thereunder is substantial. The scheme is specially tailored to free a large number of small taxpayers of their pending disputes with the tax administration. The government urges the taxpayers and all concerned to avail the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 and make a new beginning.”
