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Thursday, March 04, 2021

AAR cases, STT, disputes over Rs 5-crore tax demand out of ambit

It added disputes related to wealth tax, security transaction tax, commodity transaction tax and equalisation levy are also out of scheme’s ambit.

By: ENS Economic Bureau | New Delhi |
March 6, 2020 3:19:10 am
direct tax dispute, tax dispute resolution scheme, Vivad se Vishwas scheme, tax sefaulters, CBDT, indian express On the eligibility of cases where prosecution has been instituted against the assessee, CBDT said such disputes can’t avail of the scheme. (File Photo)

The direct tax dispute resolution scheme (Vivad se Vishwas) would not cover certain kinds of disputes, including those pending before Authority for Advance Ruling (AAR) and cases with tax demand above Rs 5 crore arising from search and seizure operations, the Central Board of Direct Taxes (CBDT) clarified on Thursday.

It added disputes related to wealth tax, security transaction tax, commodity transaction tax and equalisation levy are also out of scheme’s ambit.

The board had earlier clarified that the scheme barred disputes related to undisclosed foreign income/asset, assessment or reassessment made on the basis of information received under DTAA and where prosecution for any offence under the Indian Penal Code/Prevention of Money Laundering Act/Prohibition of Benami Property Transactions Act has been instituted or a person who has been convicted under the Acts. It said if tax arrears include tax on issues that are excluded from the scheme, such cases are not eligible to file declaration .

“There is no provision under Vivad se Vishwas to settle part of a pending dispute in relation to an appeal or writ or SLP for an assessment year. For one pending appeal, all the issues are required to be settled and if anyone of the issues makes the declaration invalid, no declaration can be filed,” it said in a list of frequently asked questions.

On the eligibility of cases where prosecution has been instituted against the assessee, CBDT said such disputes can’t avail of the scheme. “However, where only notice for initiation of prosecution has been issued with reference to tax arrears, the taxpayer has a choice to compound the offence and opt for Vivad se Vishwas,” it added. The dispute resolution-cum-amnesty scheme seeks to reduce about 4.8 lakh tax disputes involving an amount of Rs 9.32 lakh crore (up to November 30, 2019) by giving taxpayers the facility to escape interest on disputed tax amount and any penalty.—FE

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