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18 December 2019

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

The Central Government this year, in order to scale down pending litigations under Service tax and Central Excise, has introduced a scheme, known as Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS, in short). The scheme aims to provide relief to such taxpayers whose either cases are pending under litigation or whose tax dues are pending to be payable to Government under arrears. Further, this scheme also provides immunity to those taxpayers who wish to voluntarily disclose their pending tax dues not yet disclosed to/discovered by department.

Under the scheme, certain amount of relief has been provided from tax dues where after payment of net tax, complete waiver from remaining tax dues, interest and penalty will be granted and litigation will also come to an end. For example, a show cause notice has been issued proposing demand of Rs. 100 along with interest under Section 75 of the Act and penalties under Section 77 and 78 of the Act. In this case, suppose tax relief is 70% of tax dues, taxpayer will be required to pay Rs. 30 (after adjusting tax relief) under the scheme and remaining tax dues of Rs. 70 along with interest and penalty, as proposed, will be waived off and SCN proceedings will also come to an end upon issuance of discharge certificate under the scheme.

Please click here for a summary of cases covered under the scheme, cases disqualified from opting the scheme and relief available under the scheme for ready reference. Please note that declaration under this scheme can be filed till 31st December 2019 only.