All About Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019
Whats is Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019?
The Sabka Vishwas (Legacy Dispute Resolution) Scheme is a one-time measure for liquidation of past disputes of Central Excise and Service Tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration.
The scheme comes with a validity of 4 months starting from September 1, 2019 to December 31, 2019. It provides that eligible persons shall declare the tax dues and pay the same in accordance with the provisions of the Scheme. It further provides for certain immunities including penalty, interest or any other proceedings under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1944 to those persons who pay the declared tax dues.
Major Objectives of Sabka Vishwas Scheme 2019:
a) To encourage voluntary disclosure of past disputes of Central Excise, Service-tax and 26 other Indirect-tax enactments;
b) To facilitate an eligible person to declare the unpaid tax dues and pay the same as per provisions of this scheme;
c) To provide certain immunities, including penalty, interest or any other proceedings including prosecution, to eligible persons who pay the declared tax dues.
When benefit of the scheme can be availed?
The scheme can be opted for in respect of following:
a) All those cases where no appeal has been filed by the tax payer before expiry of the time period;
b) Any type of tax dispute in any appellate forum which has attained finality;
c) Taxpayer has admitted tax liability in a return filed on or before 30-06-2019.
When benefit of the scheme cannot be availed?
This scheme cannot be opted by an applicant who:
a) Has filed an appeal before appellate forum and final hearing concluded on or before 30-06-2019;
b) Has been convicted under Indirect tax enactment for any offence for the matter for which he intends to file a declaration;
c) Has been issued a show cause notice (‘SCN’) and final hearing has already taken place on or before 30-06-2019;
d) Has been issued a SCN for an erroneous refund;
e) Has been subjected to enquiry or investigation or audit and amount of duty not quantified on or before 30-06-2019;
f) Has filed an application in the Settlement Commission for settlement of a case;
g) Intends to file a declaration with respect to excisable goods which are petroleum, tobacco and related tobacco products as mentioned in the Fourth Schedule to the Central Excise Act, 1944;
h) Makes a voluntary disclosure after being subjected to enquiry or investigation or audit or having filed a return, wherein he has indicated an amount of duty as payable, but has not paid it.
Relief available under Sabka Vishwas Scheme:
a) Where a SCN has been issued or an appeal has been filed, or enquiry, investigation or audit against the declarant has been conducted on or before the 30-06-2019 in which the amount of duty quantified is:
Rs. 50 lakhs or less, 70% of the tax dues shall be waived offMore than Rs. 50 lakhs, 50% of the tax dues shall be waived off
b) Where the tax dues are relatable to a SCN for late fee or penalty only, and the amount of duty in the said notice has been paid or it is nil, then 100% of the amount of late fee or penalty shall be waived off;
c) Where tax dues are in arrears and the amount of duty is:
Rs. 50 lakhs or less, then 60% of the tax dues shall be waived off;More than Rs. 50, then 40% of the tax dues shall be waived off.
d) Where declarant has indicated in the return form (filed under the Indirect-tax enactment) an amount of duty as payable but not paid it and the duty of amount is:
Rs. 50 lakhs or less, then 60% of the tax dues shall be waived off;More than Rs. 50 lakhs, then 40% of the tax dues shall be waived off.
e) In case of voluntary disclosure made by the declarant, then, no relief shall be available with respect to tax dues.
Additionally, the declarant shall not be liable to pay any further duty, interest or penalty and his case shall not be reopened in any other proceeding under Indirect tax regime. However, if any false declaration is made in voluntary disclosure, proceedings under applicable laws shall be started within a time limit of one year.
Restrictions of the scheme:
Following restrictions have been placed under the scheme:
a) Tax dues payable shall not be paid through input tax credit account;
b) Tax dues paid shall not be taken as input tax credit or entitle any person to take input tax credit as a recipient of excisable goods or taxable services;
c) Tax dues paid shall not be refundable under any circumstances
Penalty you will pay for missing ITR filing deadline and who won’t have to pay
Cash withdrawal before 1/09/2019 won’t be subjected to TDS u/s 194N but same shall be counted in limit of Rs. 1 crDue date for filing of GST Annual Return (GSTR-9/9A) & GST Audit (GSTR-9C) extended to November 30, 2019
CBIC has extended the due date for filing of GST Annual Return and GST Audit from August 31, 2019 to November 30, 2019 for the period July, 2017 to March, 2018 [Order No. 7/2019-Central Tax, dated August 26,
2019]
Persons Registered in a particular State can’t claim credit of GST paid on hotel services availed in other State
IMF Cognitive Technology (P.) Ltd., In re – [2019] 108 taxmann.com 412 (AAAR-RAJASTHAN)
The applicant is engaged in development, designing and trading in all types of computer softwares. It procures hotel services in the Haryana State for which hotel charges Central GST and State GST of Haryana. It is registered under GST in the State of Rajasthan. It has filed an application for advance ruling to determine the availability of input tax credit of GST paid in Haryana.
The Authority for Advance Ruling, Rajasthan held that the ITC of GST paid in Haryana State shall not be available to the applicant registered in Rajasthan State. The applicant filed an appeal before Appellate Authority for Advance Ruling, Rajasthan.
The Appellate Authority observed that credit of input tax is admissible to a registered person under GST subject to some conditions and restrictions.
Central GST is levied on all intra-State supplies where the location of supplier and place of supply are in the same State. For a person registered in Rajasthan, ITC of Central GST would be available to him, if the location of supplier and place of supply of services are in the same State, i.e., Rajasthan. ITC of Central GST charged from the applicant in Haryana is not available as in this case both location of supplier and place of supply of services are in Haryana.
The Appellate Authority upheld the order of AAR that ITC of GST paid in Haryana State is not admissible to the applicant registered in Rajasthan State.
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