The Central Board of Indirect Taxes and Customs (CBIC) has recently notified the instructions for proper implementation of Sabka Vishwas (Legacy Dispute Resolution) Scheme [SVLDRS], 2019 as per the recommendation of the Comptroller and Auditor General (CAG) in the Performance and Audit Report tabled in the Parliament on December 21st, 2022.
In summary, the Audit had highlighted several irregularities in the handling of declarations under the “Voluntary Disclosure” category including improper processing of declarations, even when the declarants were under investigation; eligible declarations being rejected; incorrect calculation of tax obligations; inconsistent treatment of penalty, late fee, and interest charges; and lack of proper verification of pre-deposits or deposits.
The report from the Comptroller and Auditor General (C&AG) is available on its website (https://cag.gov.in/en) and authorities have been instructed to take action on the specific cases outlined in the report.
The audit had also informed the Ministry that some tax evaders who had taken advantage of the Voluntary Compliance Encouragement Scheme, 2013 (VCES) have not been kept in the tax system and have subsequently submitted declarations under the voluntary disclosure category in SVLDRS.
The audit had also suggested that, in certain instances, discharge certificates were not issued because of technical difficulties, even though the applicants had met all requirements and made timely payments.
It also recommended that in all such cases, where the discharge certificate was not issued due to technical reasons, and the applicant had satisfied all the requirements and made timely payments, should be resolved through collaboration with the Office of the Director General of Systems & Data Management.
Thus, if you have Voluntarily declared unpaid tax-liabilities but have not yet remitted the tax amount and duly received the discharge certificate, it is advised to clear all the pending dues in this regard at the earliest as the department is on high vigil regarding the matter.
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