Sabka Vishwas Scheme FAQ: Everything You Need to Know
1. What is Sabka Vishwas Scheme?
Sabka Vishwas Scheme is an amnesty scheme introduced by the Government of India to resolve pending disputes related to Service Tax and Central Excise.
2. What is the purpose of Sabka Vishwas Scheme?
The main objective is to reduce pending litigation and allow taxpayers to settle old tax disputes with relief in penalty and interest.
3. Who is eligible for Sabka Vishwas Scheme?
Taxpayers having pending disputes, show cause notices, or unpaid tax dues under Service Tax or Central Excise laws are eligible.
4. Which taxes are covered under Sabka Vishwas Scheme?
The scheme mainly covers Service Tax and Central Excise disputes before the GST regime.
5. Can individuals apply for Sabka Vishwas Scheme?
Yes, individuals with eligible tax disputes can apply.
6. Can companies apply under Sabka Vishwas Scheme?
Yes, companies, firms, and LLPs with pending tax disputes can apply.
7. What are the main benefits of Sabka Vishwas Scheme?
The scheme offers relief in tax dues, waiver of penalty and interest, and settlement of long-pending disputes.
8. Does the scheme provide waiver of penalty?
Yes, in most cases penalty is completely waived.
9. Is interest also waived under the scheme?
Yes, interest is usually waived once the required tax amount is paid.
10. Can taxpayers with pending appeals apply?
Yes, taxpayers with pending appeals before appellate authorities or courts can apply.
11. What is a show cause notice under Sabka Vishwas Scheme?
A show cause notice is issued by the tax department asking the taxpayer to explain unpaid tax liabilities.
12. Can taxpayers with investigation cases apply?
Eligibility depends on the stage of investigation and scheme guidelines.
13. What is voluntary disclosure in Sabka Vishwas Scheme?
Voluntary disclosure allows taxpayers to declare previously unpaid taxes and settle them under the scheme.
14. How can taxpayers apply for Sabka Vishwas Scheme?
Taxpayers can apply online through the official government portal by submitting the declaration form.
15. Is the application process online?
Yes, the declaration process is completed online.
16. What is the declaration form in Sabka Vishwas Scheme?
The declaration form is a document submitted by taxpayers to declare their pending tax liabilities.
17. Who verifies the declaration?
The Designated Committee appointed by the tax department verifies the declaration.
18. What is the Designated Committee?
It is a committee responsible for reviewing declarations and determining the payable amount.
19. How is the payable amount calculated?
The payable amount is calculated based on tax dues and relief percentages provided under the scheme.
20. What happens after declaration submission?
The committee verifies the details and issues a statement showing the final payable amount.
21. What is a discharge certificate?
A discharge certificate confirms that the tax dispute has been fully settled.
22. Why is a discharge certificate important?
It protects taxpayers from future proceedings related to that tax dispute.
23. Can the amount paid under the scheme be refunded?
No, payments made under the scheme are not refundable.
24. Is partial payment allowed under Sabka Vishwas Scheme?
Generally, the full amount must be paid within the prescribed time.
25. What happens if payment is not made on time?
Failure to pay within the deadline may cancel the benefits of the scheme.
26. Does the scheme cover GST disputes?
No, the scheme mainly applies to disputes related to pre-GST taxes.
27. Can taxpayers track the application status?
Yes, the status can be checked through the official portal.
28. Is legal assistance required for filing?
Legal assistance is not mandatory but professional help can simplify the process.
29. Can tax consultants file applications on behalf of taxpayers?
Yes, authorized consultants can assist in filing the declaration.
30. Does the scheme reduce tax litigation?
Yes, the scheme is designed to reduce long-pending tax disputes.
31. Can partnership firms apply under this scheme?
Yes, partnership firms with eligible disputes can apply.
32. What type of disputes are covered?
Disputes related to tax dues, show cause notices, appeals, and audits may be covered.
33. Does the scheme provide immunity from prosecution?
Yes, after settlement taxpayers may receive immunity from prosecution.
34. Is Sabka Vishwas Scheme beneficial for small businesses?
Yes, it helps small businesses settle disputes with reduced financial burden.
35. Can multiple cases be settled under the scheme?
Yes, taxpayers can settle multiple disputes if they meet the eligibility criteria.
36. What is the deadline for applying under the scheme?
The government specifies the deadline for filing declarations.
37. What documents are required for application?
Documents such as tax demand notices, case details, and tax records may be required.
38. What happens if the declaration is rejected?
The taxpayer may continue the dispute resolution process under regular tax laws.
39. What is the objective of Sabka Vishwas Scheme?
The scheme aims to resolve legacy tax disputes and promote voluntary compliance.
40. How can IndianSalahkar help in Sabka Vishwas Scheme?
IndianSalahkar provides expert assistance in eligibility assessment, documentation, and filing the declaration to ensure smooth settlement of tax disputes.
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