| | Contact: 8407908145 |
    Published On : Fri, Nov 20th, 2020
    Business News | By Nagpur Today Nagpur News

    VIA & Income Tax Department conducted session on “Vivad Se Vishwas Scheme 2020”

    Govt extends deadline to make payment under “Vivad Se Vishwas Scheme” till March 31, 2021

    VIA Taxation & Corporate Law Forum and Income Tax Department organised a session on “Vivad Se Vishwas Scheme 2020” recently.

    Rajesh Ranjan Prasad, IRS, Principal Commissioner of Income Tax –1&2, Nagpur was the Chief Guest of the session. Birendra Kumar, Dy Commissioner of Income Tax – Range-1, Nagpur and Rajesh Loya, Chartered Accountant were eminent speakers.

    Chief guest of the session, Rajesh Ranjan Prasad, IRS, Principal Commissioner of Income Tax –1&2, Nagpur appraised the progress made by the Income Tax Department on Vivad se Vishwas. He said this is a scheme for the benefit and convenience of the taxpayers as they would get instant disposal of the dispute with no further cost of litigation besides monetary benefits in the form of waiver of penalty, interest and prosecution. He said it was decided to adopt a proactive approach for implementation of the scheme by approaching taxpayers directly, guiding and facilitating them in filing of declarations and removing any difficulties or problems faced by them in availing the scheme.

    CA Rajesh Loya said in order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021. He said as per a Central Board of Direct Taxes (CBDT) notification, declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by December 31, 2020. However, only in respect of the said declarations made, the payment without additional amount can now be made up to March 31, 2021.

    DTVSV Scheme was announced in Budget 2020 as “No Dispute but Trust Scheme – Vivad se Vishwas Scheme” to settle pending disputes relating to direct taxes. It is an attempt to release blocked in approx 483000 appeals pending at various appellate forums. The Scheme got assent from Hon’ble President and became Direct Tax Vivad se Vishwas Act, 2020.

    He said the main purpose of the scheme is to reduce pending litigation, generate revenues for the Govt. and get relief from pending disputes by paying disputed tax and get waiver from payment of interest and penalty and also get immunity from prosecution.

    He elaborated the eligibility criteria, the Appeals, Writ Petition, SLP and Arbitration filed by Tax Payer or Deptt before 31 Jan 2020 or Appellable Orders i.e. Orders for which time limit for filing appeal has not expired on 31st Jan 2020. Cases pending before Dispute Resolution Panel (DRP) or the cases where DRP has issued direction on or before 31 Jan 2020 but Order has not yet been passed. Cases where assesse has filed revision application u/s 264 on or before 31st Jan 2020. Dispute where payment has already been made shall also be eligible.

    Birendra Kumar informed about the features and certain terms are the taxpayer can enter into a scheme where there is disputed tax/ TDS/TCS. In case, there is no disputed tax taxpayer can opt for the scheme for pending appeals relating to disputed penalty, interest and fees. Disputed tax also includes tax on enhancement notice issued by Commissioner Appeals. Where pending dispute relates to reduction of Loss, Depreciation and MAT Credit, the taxpayer has option – pay tax on reduced amount. He further informed about refund process, if excess payment is made before filing the declaration, refund shall be issued without interest. If tax is paid after availing benefit of Scheme and later tax payer decides to take refund of tax, refund will not be granted.

    He also informed about payment terms, if case is filed by income tax department-50% of above rates. In case the issue is decided in favour of tax payer by higher appellate forum-50% of above rates. If due to lack of jurisdiction, ITAT has quashed Astt Order and deptt is in appeal with HC and there is no disputed tax because there is no asstt Order- Enter into Scheme and pay 50% of disputed tax that would be restored if the deptt was to win the appeal in HC.

    The procedure of filing declaration in form-1 along with furnishing undertaking waiving rights for any remedy in form-2 to designated authority (DA). The Form is to be filed in similar way as ITR is filed i.e. by Aadhar OTP, EVC or DSC. He also briefed about exclusions from scheme, clarifications made in circular, etc.

    Earlier Suresh Rathi, President of VIA welcomed the Principal Commissioner of Income Tax –1&2, Nagpur and all guest speakers and said this would be a golden opportunity to settle your Income Tax Disputes under this scheme. The Scheme is beneficial for those taxpayers, who do not wish to litigate or where the amount of tax involved is very less than tax interest and penalty. But if there is a high amount of tax involved and taxpayer faces a liquidity crunch, it may not be possible to opt the Scheme. Also the Scheme is not beneficial if there are high chances to win the case.

    CA Ashok Chandak, Chairman – VIA Taxation & Corporate Law Forum in his welcome address said the beauty of the Scheme is that you have to pay only disputed tax and get relief from penalty, interest and prosecution. Normally penalty and interest surpasses tax and it becomes very difficult for taxpayer to pay the full amount.

    CA Naresh Jakhotia, Treasurer – VIA conducted the proceedings and briefed about holding the session on zoom. CA Sachin Jajodia, Convener of VIA Taxation & Corporate Law Forum summed up and proposed a formal vote of thanks.

    The programme was attended by members and professionals from Vidarbha region.

    Trending In Nagpur
    Stay Updated : Download Our App
    Mo. 8407908145