Sabka Vishwas under the Legacy Dispute Resolution Scheme will help MSMEs settle litigation: CBIC Official
New Delhi, July 12 (KNN) With Rs 3.75 lakh crore locked up in service tax and excise duty litigation, the government has sought to give relief to MSMEs by setting a Rs 50 lakh cut-off for deciding the extent of relief on tax dues provided under the proposed dispute resolution-cum-amnesty scheme, said Sandeep Bhatnagar, Central Board of Indirect Taxes and Customs (CBIC) member of GST.
Addressing a Post Budget interactive session with Ministry of Finance organized by Confederation of Indian Industry (CII) here, he said “The Sabka Vishwas Legacy Dispute Resolution Scheme announced in the Budget is intended to provide relief against the dispute issues relating to taxes, which have been subsumed in GST.”
A robust data exchange system between CBDT and CBIC shall help the tax department recognize tax evasion, which in turn will help the honest taxpayers, he added.
He added that the Budget has made announcements for rationalization of tariff lines and promotion of the Make in India initiative.
On e-invoicing, Bhatnagar said that it would be introduced from January 1, 2020 and a lot of preparatory work has been done. Going forward, it may ease processes so that in the future, there will be no need to file returns.
Commenting on the Budget, , Chairman of CBDT, Pramod Chandra Mody said “This is a very distinctive Union Budget, laying down very clear policy direction and road map for the new India we envisage, heading towards a USD 5 trillion economy.”
Ease of tax compliance, both at the policy and process levels, shall promote ease of living, which has been distinctively addressed in the Budget, he added.
Pre-filling of returns shall be able to reduce errors in tax calculation and also collection. Faceless assessment is a great step, according to Mody.
Tax offices will be anonymized and the pain points will be minimized, he added.
The Government is moving towards the creation of a friendly atmosphere to promote voluntary compliance by taxpayers. The taxpayers are also expected to give focused replies to tax questionnaires issued by the tax department.