Fresh Improvement in ‘Vivad Se Vishwas Scheme’ by CBDT Dept

Under the direct tax dispute resolution scheme ‘Vivad Se Vishwas’ the entities furnishing the declaration can be amended till the tax council provides the certificate which displays the information of the tax arrear and the amount payable said the income tax department.

The Central Board of Direct Taxes (CBDT) providing the FAQs on ‘Vivad Se Vishwas’ scheme Know about the tax dispute settlement scheme (Vivad se Vishwas Bill) under the IT act. Under this scheme, taxpayers can settle all disputes before the end of 31st March 2020 added that the policy will not be claimed in the case where there are due proceedings to the Income Tax Settlement Commission (ITSC) or where the writ has been furnished upon the order of ITSC.

CBDT indeed cleared that in the case where the Mutual Agreement Procedure (MAP) resolution is due or the taxpayer has rejected MAP decision, the same appeal will be liable beneath ‘Vivad se Vishwas’.

“In such case, the declarant will be required to withdraw both MAP application and appeal,”

The assessee will be liable to make the declarations say the Income Tax department if in case the AAR held in favor of the assessee and the council has furnished the appeal prior to High court or supreme court and the taxpayer income was also assessed by the AAR.

“Yes, the taxpayer is eligible since the income is quantifiable. In such case, since the issue is covered in favor of the taxpayer, only 50 percent of the disputed tax is payable,”

“The authorities are ensuring that the scheme is utilized by the maximum number of taxpayers and as the scheme is new, this provision enabling revision before the certificate is issued would equip the applicant to revise the application in case any errors are discovered or any clarification is subsequently obtained from the Authorities itself,”

Within the scheme till November 17, the government had collected Rs 72,480 crore tax. A total of 45,855 proclamations were registered beneath the policy which consists of disputed tax demand of Rs 31,734 crore till November 17.

Apart from that, the central public sector firms are indeed solving the issues whose sum is around Rs 1 lakh cr beneath the scheme. The settlement of the disputed tax, disputed interest, disputed penalty, or disputed fees is provided under the scheme in concern to the assessment order on 100% amount of the disputed tax and 25 % of the disputed penalty or interest or fee.

To settle the direct tax These types of taxes are directly imposed and paid to the government of India. Example of Direct Tax is Income Tax, TDS, Securities Transaction Tax, Fringe Benefit Tax, etc disputes secured in the numerous appellate forum on March 17, 2020, the direct tax Vivad se Vishwas Act, 2020 was passed.

Earlier the furnishing date to file the declaration under Vivad se Vishwas was prolonged from March 31, 2020, to June 30, 2020, so as to give time to the assessee to manage the disputes.

This date was merely prolonged to Dec 31, 2020 hence the declaration, as well as the payment excluding any extra amount beneath the Vivad se Vishwas, were required to be filed. March 2021 is the payment date that has been extended.