{"id":6771,"date":"2020-03-21T11:06:56","date_gmt":"2020-03-21T05:36:56","guid":{"rendered":"http:\/\/itatonline.org\/articles_new\/?p=6771"},"modified":"2020-03-21T11:06:56","modified_gmt":"2020-03-21T05:36:56","slug":"vivad-se-vishwas-scheme-the-law-procedure-and-dilemma","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/vivad-se-vishwas-scheme-the-law-procedure-and-dilemma\/","title":{"rendered":"Vivad Se Vishwas Scheme: The Law, Procedure And Dilemma"},"content":{"rendered":"

\"ShashiAdvocate Shashi Bekal has conducted a holistic analysis of the Vivad se Vishwas scheme in the light of all recent developments. He has also provided a practical guide on how the declaration forms have to be filled and payment made. He has called upon the Government to extend the due date for payment of the tax in view of the prevailing lockdown in the Country. He has argued that the failure to extend the due date will expose the Scheme to serious legal challenge from disgruntled taxpayers<\/strong> <\/p>\n

1. Introduction:<\/strong><\/p>\n

The Vivad se Vishwas (‘VSV<\/strong>’) Scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020. This has been introduced as a way to reduce the pendency of litigation under the Income tax Act, 1961 (‘Act<\/strong>’) with a golden shake hand via a one-time-exit-window.<\/p>\n

<\/p>\n

On March 18, 2020, The VSV Rules 2020 has been released along with various Forms and schedules. On a prima facie <\/em>glance at Form 1 i.e. the declaration under the VSV Act, 2020, it appears that, the same would be available in form of a utility, and the same has been made available on the Income tax e filing portal along with a brief and Instructions.<\/p>\n

Link to the instructions for filing the form<\/a>: \n<\/p>\n

2. The important dates in the life of this piece of legislation is as under:<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Sr. No.<\/strong><\/p>\n<\/td>\n

\n

Date<\/strong><\/p>\n<\/td>\n

\n

Particulars<\/strong><\/p>\n<\/td>\n<\/tr>\n

1. <\/td>\n\n

January 31, 2020 <\/p>\n<\/td>\n

\n

Specified date as defined under the VSV Act, 2020<\/p>\n<\/td>\n<\/tr>\n

2.<\/td>\n\n

February 1, 2020 <\/p>\n<\/td>\n

\n

The Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020 (2020) 420 ITR 115 (st) (146)<\/strong>proposed to introduce a scheme<\/a> at para 126 of the speech.
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

3. <\/td>\n\n

February 5, 2020 <\/p>\n<\/td>\n

\n

The Bill is formally presented before the Parliament.<\/a>
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

4. <\/td>\n\n

February 12, 2020 <\/p>\n<\/td>\n

\n

The Cabinet approved certain amendments with a view to widen the scope of the Bill<\/a>.
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

5.<\/td>\n\n

March 4, 2020 <\/p>\n<\/td>\n

\n

Central Board of Direct Taxes (‘CBDT’<\/strong>) vide Circular No. 7 of 2020<\/strong> provided clarifications on provisions of VSV in the form of FAQs.<\/a>
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

6. <\/td>\n\n

March 4, 2020 <\/p>\n<\/td>\n

\n

VSV Bill, 2020 passed in the Lok Sabha<\/p>\n<\/td>\n<\/tr>\n

7. <\/td>\n\n

March 5, 2020 <\/p>\n<\/td>\n

\n

Press Release:  CBDT issues FAQs on Direct Tax Vivad se Vishwas Scheme, 2020<\/a>.
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

8.  <\/td>\n\n

March 13, 2020 <\/p>\n<\/td>\n

\n

VSV Bill, 2020 receives a nod from the Rajya Sabha<\/p>\n<\/td>\n<\/tr>\n

9. <\/td>\n\n

March 17, 2020 <\/p>\n<\/td>\n

\n

VSV Bill, 2020 receives a nod from the President<\/p>\n<\/td>\n<\/tr>\n

10. <\/td>\n\n

March 17, 2020 <\/p>\n<\/td>\n

\n

VSV Act, 2020<\/a> comes into force
\n <\/a><\/p>\n<\/td>\n<\/tr>\n

11. <\/td>\n\n

March 18, 2020 <\/p>\n<\/td>\n

\n

VSV Rules, 2020<\/a> are notified
\n <\/em><\/a><\/p>\n<\/td>\n<\/tr>\n

12. <\/td>\n\n

March 31, 2020 <\/p>\n<\/td>\n

\n

Cut-off date for beneficial payment under the VSV Act, 2020<\/p>\n<\/td>\n<\/tr>\n

13. <\/td>\n\n

To be notified – as per the Act.<\/p>\n

June 30, 2020* As per the Budget Speech<\/p>\n<\/td>\n

\n

Last date for payment under the VSV Act, 2020<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

 <\/strong>3. The Direct Tax VSV Rules, 2020 contains various Forms and Schedules for making payment under the VSV Act, 2020. For the sake of convenience, the same are simplified as under:<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Form No. \/ Schedule No.<\/strong><\/p>\n<\/td>\n

\n

Remarks<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Form – 1<\/p>\n<\/td>\n

\n

This is the Form for filing declaration. <\/p>\n<\/td>\n<\/tr>\n

\n

A. Schedules applicable where declaration relates to disputed tax<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Schedule I<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before CIT(A)<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before CIT(A) has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule II<\/p>\n<\/td>\n

\n

To be filled in case assessee has filed objections with DRP<\/u><\/strong> against draft assessment order and DRP has not issued any directions as on 31.01.2020 or the time-limit to file objections against draft order passed by AO has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule III<\/p>\n<\/td>\n

\n

To be filled in case DRP has issued directions<\/u><\/strong> under section 144C of the Act in response to objections filed by the assessee and Assessing Officer has not passed the order as per such directions issued by DRP as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IV<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before ITAT has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule V<\/p>\n<\/td>\n

\n

To be filled in case appeal ofDepartment is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in ITAT has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VI<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of assessee is pending before High Court<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before High Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VII<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of Department is pending before High Court<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in HC has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VIII<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of assessee is pending before Supreme Court<\/u><\/strong> as on 31.01.2020 or the time for filing appeal or SLP by the assessee before Supreme Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IX<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of Department<\/u><\/strong> is pending before Supreme Court as on 31.01.2020 or the time to file appeal or SLP by the department in SC has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule X<\/p>\n<\/td>\n

\n

To be filled in case of a revision application of assessee under section 264<\/u><\/strong> is pending before PCIT\/CIT as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule XI<\/p>\n<\/td>\n

\n

To be filled in case arbitration or conciliation or mediation<\/u><\/strong> of assessee is pending as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

B. Schedules applicable where declaration relates to disputed TDS\/TCS<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Schedule I<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before CIT(A)<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before CIT(A) has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule II<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before ITAT has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule III<\/p>\n<\/td>\n

\n

To be filled in case appeal of Department is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in ITAT has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IV<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of assessee is pending before High Court <\/u><\/strong>as on 31.01.2020 or the time for filing appeal by the assessee before High Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule V<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of Department is pending before High Court<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in HC has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VI<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of assessee is pending before Supreme Court<\/u><\/strong> as on 31.01.2020 or the time for filing appeal or SLP by the assessee before Supreme Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VII<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of Department is pending before Supreme Court<\/u><\/strong> as on 31.01.2020 or the time to file appeal or SLP by the department in SC has not expired on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VIII<\/p>\n<\/td>\n

\n

To be filled in case of revision application of assessee under section 264<\/u><\/strong> is pending before PCIT\/CIT as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IX<\/p>\n<\/td>\n

\n

To be filled in case arbitration or conciliation or mediation<\/u><\/strong> of assessee is pending as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

C. Schedule applicable where declaration relates to disputed penalty, interest or fee only<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Schedule I<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before CIT(A)<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before CIT(A) has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule II<\/p>\n<\/td>\n

\n

To be filled in case appeal of assessee is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time for filing appeal by the assessee before ITAT has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule III<\/p>\n<\/td>\n

\n

To be filled in case appeal of Department is pending before ITAT<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in ITAT has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IV<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of assessee is pending before High Court<\/u><\/strong>as on 31.01.2020 or the time for filing appeal by the assessee before High Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule V<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ of Department is pending before High Court<\/u><\/strong> as on 31.01.2020 or the time to file appeal by the department in HC has not expired on 31.01.2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VI<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of assessee is pending before Supreme Court<\/u><\/strong> as on 31.01.2020 or the time for filing appeal or SLP by the assessee before Supreme Court has not expired as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VII<\/p>\n<\/td>\n

\n

To be filled in case appeal or writ or SLP of Department is pending before Supreme Court<\/u><\/strong> as on 31.01.2020 or the time to file appeal or SLP by the department in SC has not expired on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule VIII<\/p>\n<\/td>\n

\n

To be filled in case of revision application of assessee under section 264<\/u><\/strong> is pending before PCIT\/CIT as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule IX<\/p>\n<\/td>\n

\n

To be filled in case arbitration or conciliation or mediation<\/u><\/strong> of assessee is pending as on 31.01.2020<\/p>\n<\/td>\n<\/tr>\n

\n

Schedule D: In case the appellant opts not to pay tax on additions having effect of reducing loss\/depreciation or MAT credit carried forward then the relevant column of the following schedule is to be filled up.<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

 <\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Form 2<\/p>\n<\/td>\n

\n

Undertaking under section 4 (5) of the VSV Act, 2020 <\/p>\n<\/td>\n<\/tr>\n

\n

Form 3 <\/p>\n<\/td>\n

\n

Form for Certificate under section 5 (1) of the VSV Act, 2020<\/p>\n<\/td>\n<\/tr>\n

\n

Form 4<\/p>\n<\/td>\n

\n

Intimation of Payment under section 5 (2) of the VSV Act, 2020.<\/p>\n<\/td>\n<\/tr>\n

\n

Form 5<\/p>\n<\/td>\n

\n

Order for Full and final settlement of tax arrear under section 5 (2) read with Section 6 of the VSV Act, 2020.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

 <\/strong>4. Procedure for making payment under VSV Act:<\/strong><\/p>\n

Some points to keep in mind<\/p>\n