Sabka Vishwas (Legacy Dispute Resolution) Scheme or SVLDRS Scheme was started in the year 2019 which enables taxpayers to resolve pending disputes with some reliefs provided. Pre-GST taxpayers can clear their tax disputes through this scheme. This scheme is applicable to 26 different enactments and the taxpayers get very good relaxation while clearing pending taxes.
In this article, we will be discussing SVLDRS Scheme in detail and will let you know how you can take advantage of this scheme and get rid of your old disputes.
Table of Contents
Introduction to SVLDRS Scheme
This scheme was first introduced in the Union Budget 2019. It was introduced to help taxpayers resolve former Service Tax and Central Excise Acts (now they are subsumed under GST) related disputes. It offered huge relief on fines, penalties, and interests. For non-compliant taxpayers, the scheme offers the option for voluntary disclosure.
The reason behind the introduction of this scheme was to resolve all previous litigation concerning the pre-existing tax regime and fully focus on the new GST system.
As already said, the Sabka Vishwas scheme is applicable to 26 enactments. These are:
- The Agriculture Produce Cess Act – 1940
- The Coffee Act – 1942
- Mica Mines Labour Welfare Fund Act – 1946
- The Rubber Act – 1947
- The Salt Cess Act – 1953
- The Sugar (Special Excise Duty) Act – 1959
- The Additional Duties of Excise (Goods of Special Importance) Act – 1957
- Medicinal and Toilet Preparation (Excise Duties) Act – 1955
- Mineral Products (Additional Duties of Excise and Custom) Act – 1958
- The Textile Committee Act – 1963
- The Produce Cess Act -1966
- Limestone and Dolomite Mines Labour Welfare Fund Act – 1972
- The Coal Mines (Conservation and Development) Act – 1974
- The Oil Industry (Development) Act – 1974
- The Tobacco Cess Act – 1975
- The Iron, Manganese and Chrome Ore Mines Labour Welfare Cess Act – 1976
- The Bidi Workers Welfare Cess Act – 1976
- The Additional Duties of Excise (Textile and Textile Articles) Act – 1978
- The Sugar Cess Act – 1982
- The Jute Manufactures Cess Act – 1983
- Spices Cess Act – 1986
- The Agricultural and Processed Food Products Export Cess Act – 1985
- Finance Act of 2004
- Finance Act of 2007
- Finance Act of 2015
- Finance Act of 2016
Benefits of the SVLDRS Scheme
- It gives an opportunity to all the taxpayers to get free from the unpaid taxes with outstanding government relief provided.
- This way, they can avoid any legal consequences that can arise in the future.
- The relief is provided to the taxpayers as full waivers of interest, fines and penalties.
Features of SVLDRS Scheme
- Adjusting already made duty-related deposits.
- The proceedings enacted while resolving disputes under SVLDRS Scheme cannot be considered as precedent for any future or past liabilities.
- Right for personal hearing is provided before the final decision is made.
- Complete automated proceedings take place.
Reliefs Under SVLDRS Scheme
40% – 70% relief margin is provided on all duty demands. (Voluntary Disclosure is an exception).
|Relief Available from the Duty Demand||Duty Demands up to Rs. 50,00,000||For Duty Demands more than Rs. 50,00,000|
|For Cases Pending Adjudication or Appeal||70%||50%|
|For Cases of Confirmed Duty Demands (where no appeal is pending)||60%||40%|
|Cases of Voluntary Disclosure||Full duty disclosed amount||Full duty disclosed amount|
How Sabka Vishwas Legacy Dispute Resolution Scheme Works?
- Declaration under SVLDRS is filed through electronic medium.
- Separate declarations have to be filed for each case.
- When the declaration is filed, a unique reference number is provided.
- Using the details provided by the declarant and old records available, the verification of the declaration is done by the designated committee. This process is not done if the case is of voluntary disclosure.
- In the next 60 days of declaration filing, the designated committee states the amount to be paid.
- If this amount is greater than the estimated amount declared by the declarant, then the committee issues the particulars of the estimated payable amount that has to be paid within a period of 30 days (with respect to the declaration receipt date).
- The declarant shall pay this specified amount within 30 days.
- Discharge Certificate is issued to the declarant within 30 days from the date of payment by the designated committee after the full payment is made.
This was all about the SVLDRS scheme. Hope you found this helpful.
SVLDRS Official Website- https://www.cbic.gov.in
CBIC Officer Helping Number -1800-1200-232