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SEPTEMBER - 2019
SABKA VISHWAS
Dispute Resolution & Amnesty for
MSMEs under New Scheme
Substantial tax relief plus waiver of waiver of interest, fine, penalty, In all these
Interest, Penalty, Fine in tax litigation cases, there would be no other liability of
cases is a golden opportunity for small interest, fine or penalty. There is also a
entrepreneurs in Peenya: PIA President complete amnesty from prosecution.
In the Union Budget 2019-20, the Hon'ble For all the cases pending in adjudication or
Finance Minister announced the Sabka appeal – in any forum - this Scheme offers a
Vishwas - Legacy Dispute Resolution relief of 70% from the duty demand if it is
Scheme, 2019. The Scheme has now been Rs.50 lakh or less and 50% if it is more than
notified and is in operation from Sep 1, Rs. 50 lakh.
2019. The Scheme will continue till Dec 31,
2019. The Centre expects the Scheme to be The same relief is available for cases under
availed by large number of taxpayers for investigation and audit where the duty
closing their pending disputes relating to involved is quantified and communicated to
legacy Service Tax and Central Excise cases the party or admitted by him in a statement
that are now subsumed under GST so they on or before June 30, 2019.
can focus on GST.
Further, in cases of confirmed duty demand,
where there is no appeal pending, the relief
offered is 60% of the confirmed duty amount
if the same is Rs. 50 lakh or less and it is
40%, if the confirmed duty amount is more
than Rs. 50 lakh.
Finally, in cases of voluntary disclosure, the
person availing the Scheme will have to pay
only the full amount of disclosed duty.
Welcoming the operationalizing of the
The two main components of the Scheme Scheme, Incoming President of PIA, Sri
are Dispute Resolution and Amnesty. Srinivas Asranna observed that it has been
conceptualized to free as large a segment of
The dispute resolution component is aimed the taxpayers from the legacy taxes as
at liquidating the legacy cases of Central possible, and that is the reason why the
Excise and Service Tax that are subsumed in relief given there-under is not meagre and
GST and are pending in litigation at various quite substantial. The Scheme is especially
forums.
tailored to free the large number of small
taxpayers of their pending disputes with the
The amnesty component of the Scheme tax administration, he said and urged the
offers an opportunity to the taxpayers to pay Members and the MSMEs in Peenya and
the outstanding tax and be free of any other surrounding industrial areas in particular,
consequence under the law.
to avail the benefits arising out of the
The most attractive aspect of the Scheme is SabkaVishwas - Legacy Dispute Resolution
that it provides substantial relief in the tax Scheme, 2019 and make a new beginning.
dues for all categories of cases as well as full
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