New Delhi: The rules to resolve direct tax disputes under No Dispute but Trust Scheme – ‘Vivad Se Vishwas’ Scheme would be notified by mid-February offering taxpayers option to settle disputes out of legal forums.
“Sabka Vishwas scheme (for closing indirect tax disputes) was open for months. The Vivad Se Vishwas Scheme will start from second week of February and taxpayers will have almost five months time for this scheme. The window would be open till June. If taxpayers pay the disputed tax amount by March, they will get more benefit,” Revenue Secretary Ajay Bhushan Pandey told IANS in an interview.
Asked if the big taxpayers would avail the scheme given that they did not participate in Sabka Vishwas scheme, he said he was hopeful that they will find it attractive.
“Who will come and who will not come depends on taxpayers. This is a voluntary scheme and we are quite hopeful that most people will find it attractive and useful. If one particular industry or taxpayer feels that they have a stronger case, they can continue with the legal route,” Pandey said.
On expected revenue from the proposed scheme, the top revenue officer said that the basic purpose of the scheme is to help business and industry to come out of litigation.
“The main purpose of the scheme is to help the industry and the business to come out of litigation and not so much about how much amount we are going to get. The revenue will be a by-product,” he said.
Currently, there are 4,83,000 direct tax cases pending in various appellate forums such as Commissioner (Appeals), ITAT, High Courts and the Supreme Court. Tax experts have claimed that the window available under the direct tax dispute resolution scheme is very short.
Proposing the scheme in the Budget Saturday, Finance Minister Nirmala Sitharaman had said that those who avail this scheme after March 31, 2020 will have to pay some additional amount. Further, taxpayers in whose cases appeals are pending at any level can benefit from this scheme.
(IANS)