SCHEME 2019 THE FINANCE n o2 aCT 2019 amp Notification n o 052019 ce nt OBJECTIVES OF THE SCHEME 2 1 3 The Scheme is a one time measure ID: 917530
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SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019
THE
FINANCE
(n
o.2
)
aCT
, 2019
&
Notification n
o
. 05/2019
ce
-
nt
Slide2OBJECTIVES OF THE SCHEME
2
1
3
The Scheme is a
one time measure
for liquidation of past
disputes
of Central
Excise,
Service
Tax and 26 other
i
ndirect tax enactments.
The Scheme provides that eligible persons shall
declare the
unpaid tax
dues and pay the same
in accordance with the provisions of the
Scheme.
The Scheme provides for certain
immunities including penalty, interest or any other
proceedings including prosecution
to those persons who pay the declared tax dues.
Slide3INTRODUCTIONThis Scheme shall be called the
Sabka
Vishwas
(Legacy Dispute Resolution) Scheme, 2019. It shall come into force on 1st day of September, 2019.Declaration shall be made electronically at https://cbic-gst.gov.in by the declarant, on or before 31st December, 2019.Declaration related to excisable goods set forth in the Fourth Schedule (Chapter 24 and 27) to the Central Excise Act, 1944 are not included under the Scheme.The Scheme is applicable to the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and 26 other Acts and the Rules made thereunder.
Slide4TYPES OF DISPUTES COVERED BY SCHEME
No appeal filed before expiry of the time period
Any type of dispute in any appellate forum which is attaining finality
Admitted liability in a return
“Amount in arrears” means the amount of duty which is recoverable as arrears of duty. “Appellate forum” does not include JS(RA) and Settlement Commission.
Slide5Arrears arising out of Single Appeal
(Dept. or Party appeal)
Enquiry or Investigation or Audit
(quantified as on 30
th
June 2019)
SCN issued
(as on 30
th
June 2019)
An amount in Arrears
Arrears arising out of more than one appeal
(Dept. and Party appeal)
Voluntary Disclosure
TAX DUES
“
Quantified”
means a written communication of the amount of duty payable under the indirect tax
enactment.
“
Audit
” means any scrutiny, verification and
checks and
will commence when a written intimation from the
Central Excise
officer regarding conducting of audit is received.
‘‘
Enquiry or investigation
’’, under any of the indirect tax enactment, shall include the following actions, namely:—
(
i
) search of premises;
(
ii
) issuance of summons;
(
iii
) Letters asking for production
of accounts
, documents or
other
evidence;
(
iv
) recording of
statements.
Slide6EXAMPLES FOR TAX DUES
SCN FOR DUTY
`
1000 AND PENALTY
`100ORDER IS FOR `1000 AND PENALTY IS `100SCN FOR DUTY `1000 AND PENALTY `100ORDER IS FOR `900 AND PENALTY IS `90SCN FOR DUTY `1000 AND PENALTY `100ORDER IS FOR `900 AND PENALTY IS `90 ASSESSEE FILES APPEAL AGAINST ORDER AND DEPT FILES APPEAL FOR `100 PLUS PENALTY `10SCN FOR DUTY `1000 AND PENALTY `100 & CONFIRMED.FIRST APPEAL REDUCES DUTY TO `900. FILES SECOND APPEAL
TAX DUES ARE `1000TAX DUES ARE `900 TAX DUES ARE `1000 (900 + 100)
TAX DUES ARE `900“Amount payable” means the final amount payable by the declarant as determined
by the designated committee and as indicated in the statement issued by it and shall be calculated as the amount of tax dues less
the tax relief.
Slide7SCN or one or more appeals
As on 30
th
June 2019Enquiry or investigation or auditQuantified as on 30th June 2019 An amount in arrearsAmount payable as per returnSCN for late fee or penalty only and duty is paid / nilVoluntary Disclosure`50 LAKHS OR LESSER70 %70 %60 %60 %Entire fee or penaltyRelief only for interest & penalty. No tax relief.MORE THAN `50 LAKHS50 %50 %
40 %40 %Entire fee or penaltyRelief only for interest & penalty. No tax relief.RELIEF AVAILABLE UNDER SCHEME
Slide8Not
eligible for any tax relief, but relief available for interest and penalty
No
verification by designated committee
Within one year, if found to be false, appropriate proceedings shall be initiated
Cannot
make a voluntary disclosure after an enquiry or investigation or audit or for an amount declared as payable in a return filed consequent to such proceedings.
Voluntary disclosure under this scheme
Slide9Preconditions:The relief calculated shall
be subject to the condition that
any amount paid as
pre-deposit shall
be deducted when issuing the statement indicating the amount payable by the declarant.Provided that if the amount of pre-deposit or deposit already paid > the amount payable the declarant shall not be entitled to any refund. RESTRICTIONS OF THE SCHEME : (a) Shall not be paid through the input tax credit account. (b) Shall not be taken as input tax credit; or entitle any person to take input tax credit, as a recipient, of the excisable goods or taxable services. (c) Shall not be refundable under any circumstances.
Slide10P
rincipal
c
ommissioner
/ Commissioner and addl. / joint commissioner of central excise & service tax Where tax dues are more than rupees fifty lakhsAddl / Joint Commissioner and Deputy / Asst. Commissioner of Central Excise & Service tax Where tax dues are rupees fifty lakhs OR LESSERPrincipal ADG (Adjudication) or ADG (Adjudication) of DGGI and ADG / Joint Director of DGGI, DelhiCONSTITUTION OF DESIGNATED COMMITTEE
Slide11A Declaration in Electronic form (
SVLDRS-1)
shall be filed
The designated committee shall verify correctness
When amount declared = Estimated Amount, SVLDRS-3 shall be issued within 60 daysWhen Estimated Amount > Amount declared by declarant, SVLDRS-2 shall be issued within 30 daysOn receipt of request for an adjournment, committee can grant the same in SVLDRS-2BAfter hearing the declarant, SVLDRS-3 indicating amount payable shall be issued within 60 daysThe declarant shall pay online within 30 daysOn payment and production of proof of withdrawal of appeal OR if no tax dues, the committee shall issue a discharge certificate SVLDRS-4 within 30 days
Within 30 days of issuance of SVLDRS-3, the committee can modify its order only to correct an arithmetical error or clerical error
VERIFICATION OF DECLARATIONDeclarant should indicate agreement / disagreement / to make written submission / seek an adjournment in SVLDRS-2A NO TAX DUES
Slide12a
b
c
def
ghAppeal before appellate forum and heard finally on or before 30th June 2019a Convicted for any
offence for the matter for which he intends to file a declarationb
Issued a SCN and final hearing has taken place on or before 30th June 2019 cIssued a SCN for erroneous refund or refundd
Subjected to enquiry or investigation or audit and duty involved has not been quantified on or before 30th June 2019eVoluntary Disclosure after being subjected to any enquiry or
investigation or audit & filed a return, indicating duty as payable, but has not paid itfApplication in
the Settlement
Commission g
Excisable goods from Fourth
Schedule to the
Central Excise Act,
1944hNot eligible to make a declaration under the scheme
Slide13Slide14PROTECTION
TO
OFFICERS
Slide15THANK YOU