Only Small Taxpayers Seek To Settle Indirect Tax Dues Under Dispute Resolution Scheme
In about 7,100 cases, a total tax amount of Rs 1.7 lakh crore is under litigation, which won’t be settled under the scheme.
About 87 percent of eligible small taxpayers have sought to settle legacy disputed indirect tax dues under the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019.
These taxpayers have declared tax dues of around Rs 79,968 crore and would pay Rs 35,094 crore under the scheme, a government official privy to the development said.
Large taxpayers, however, have given the amnesty scheme a miss. About 23,000 taxpayers out of the eligible 1.84 lakh taxpayers haven’t shown interest in the scheme, the official said on condition of anonymity. In about 7,100 cases, the official said, a total tax amount of Rs 1.7 lakh crore is under litigation and won’t be settled under the scheme.
That’s because such taxpayers rely on consultants and intermediaries, who may not see the one-time resolution scheme in their best interest, the official said.
Krishan Arora, partner at Grant Thornton India, said the large taxpayers’ cases may be strong, and potentially involve higher amounts.
These taxpayers have time till Jan. 15 to opt for the scheme after the government last week extended its last date from Dec. 31. Nearly 73 percent of eligible taxpayers had availed the scheme who would pay tax worth Rs 30,627 crore as on Dec. 31.
The Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019, offers a relief of 70 percent if the total tax due is up to Rs 50 lakh for cases pending in adjudication or appeal in any forum. For demand of more than Rs 50 lakh, taxpayers will get a relief of 50 percent.
The relief is available for cases under investigation and audit where the duty involved is quantified and communicated to the taxpayer or admitted in a statement by June 30, 2019.
In cases where duty demand is confirmed and there’s no appeal pending, the relief offered is 60 percent if the tax due is up to Rs 50 lakh, and 40 percent if the tax due is over Rs 50 lakh.
The official cited earlier said officers of Central Board of Indirect Taxes and Customs are pursuing taxpayers to avail this scheme before Jan. 15 as it wouldn’t be extended further.
According to a report by Parliamentary Standing Committee on Finance, as on Aug. 30, 2019, the quantum of disputed indirect tax dues that could be collected by the government was worth Rs 28,809 crore, while those difficult to recover stood at Rs 2.45 lakh crore.