Wednesday, May 20, 2020

Vivad se Vishwas Scheme




Vivad se Vishwas Scheme
                                                                                   
                                                                                        CA Dhruv Anand

Introduction:-

The Direct Tax Vivad se Vishwas Act, 2020 introduced a dispute resolution scheme, which was applicable to all appeals/petitions filed by the taxpayers or the income tax department, which were pending until 31 January 2020, before any appellate forum. In essence, it offered complete waiver of interest and penalty if the taxpayer agreed to pay the disputed tax amount by 31 March 2020.
However the government has extended the deadline for settling tax disputes under the Vivad se Vishwas scheme without paying any interest and penalty to June 30, 2020 from March 31, 2020.

What is Vivad se Vishwas scheme?

This is a direct tax scheme announced in Budget 2020, for settling tax disputes between individuals and the income tax department. Earlier, the scheme offered complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute if the scheme was availed by March 31, 2020. An individual opting for settlement after March 31, 2020 was required to pay additional 10 per cent penalty on the disputed tax amount.

Objectives of this scheme:-

1.    Reduce income tax pending Litigation
2.    Generate Timely Revenues for Government
3.    Help Taxpayers end their tax disputes with the department by paying disputed tax and get waiver from payment of interest & penalty. Also get immunity from prosecution.


Eligibilty criteria for this scheme:-

1.     Appeals, writs, SLPs, arbitration (filed by Department or taxpayer) filed on or before 31 Jan  2020.
2.    Orders for which time for filing appeal has not expired on 31 Jan 2020.
3.    Cases pending before Dispute Resolution Panel (DRP).
4.    Cases where DRP issued direction on or before 31 Jan 2020 but order has not yet been  passed.
5.    Cases where assessee filed revision application under section 264 on or before 31 Jan 2020.
6.     Dispute where payment has already been made shall also be eligible. The pending appeal, writ, SLP, arbitration could be against- Disputed tax (including interest or penalty on such disputed tax) in relation to an assessment or reassessment order Disputed interest, disputed penalty or disputed fees where there is no disputed tax.
7.     Disputed tax can also include the tax determined on default in respect of tax deducted at  source (TDS) or tax collected at source (TCS).
8.      Disputed tax shall include tax on enhancement notice.

Payment Terms:-


CA Dhruv Anand
Mobile - 8130782695, 8383824051
Email - dhruvanand02@gmail.com

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