| Query | Is the interest u/s 220(1) of the Act also waived on settlement of the disputes? |
| Answer | Yes interest u/s 220(1) will be waived. (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | What if the penalty issue is already in favour of the assessee by an order of superior authority, will the assessee qualify for the 50% payment criteria? |
| Answer | No specific Clarification provided in this regard (read more) |
| Query | Where the time limit to file appeal has not expired against the penalty order, can one fall under the scheme? |
| Answer | Yes. Terms of availing VSV in case of penalty are similar to terms in case of disputed tax. Appellant should indicate in the declaration form that time limit to file appeal has not expired. (read more) |
| Query | Can one continue to dispute the quantum additions and settle the penalty appeal? |
| Answer | No. Cannot apply for settlement of penalty appeal when quantum appeal related to such penalty is pending. (read more) |
| Query | In case if there is difference in amount intimated by DA and amount declared by the taxpayer under declaration, what is likely to be remedy available to the taxpayer? Will there be any scope for email communication with DA to explain the difference? |
| Answer | As per FAQ 46 dt 4 March 2020, DA shall be able to amend his orders under clause 5 to rectify any apparent errors. However, the way and the manner of communication with the DA is not prescribed yet. (read more) |
| Query | If CIT(A) has passed on order giving partial relief and appeal effect is yet to be given as on 31 January 2020 (say given on 15 February ie before filing the VSV declaration). Assessee has filed appeal before the ITAT after 31 January 2020 but before filing of declaration. Whether such an appeal can be settled under the VSV scheme? |
| Answer | CIT(A) order was passed before 31 January 2020. The ITAT appeal has been filed after 31st Jan 2020 but was filed within the time limit of 60days. Accordingly, since time limit to file ITAT appeal was available as on 31 Jan 2020, the Appellant can avail benefit fo the VSV scheme in this case. The Disputed tax will be… (read more) |
| Query | Where one of the addition made is in respect of undisclosed foreign assets, does one settle the dispute for the remaining issues or one cannot settle such dispute? |
| Answer | No. As per section 9(iii) VSV would not apply to Tax Arrears in respect of undisclosed foreign assets. Further, Q11 clarifies that if tax arrears include issues that are excluded from VSV, such cases are not eligible under the scheme. (read more) |
| Query | Whether amount payable under VSV by settling the appeal will be considered as “tax paid” under the DTAA and the taxpayer in foreign country will be able to take tax credit of the same? |
| Answer | No clarification available. In our view, since the tax is paid by the same challan as used under the income tax law. the VSV disputed tax paid should be viewed as tax paid under Income tax law and should be eligible for foreign tax credit in the jurisdiction of the residence of taxpayer as… (read more) |
| Query | Whether VSV Scheme can be availed where proceedings are pending before Mutual Agreement Procedure (MAP) authorities? |
| Answer | Mutual Agreement Procedure (MAP) is not an appeal pending and hence, will not be eligible for VSV settlement. Mutual Agreement Procedure (MAP) , however, can also be availed, in cases where appeals are pending before CIT(A)/ ITAT. Hence, where appeals are pending as on 31 January 2020 (even though application is made before MAP authorities), VSV could be availed… (read more) |
| Query | Whether VSV Scheme can be availed where proceedings are pending before Settlement Commission? |
| Answer | As per 245A, Taxpayer can approach Settlement Commission for any proceedings (viz.143(3), 147, 254, 263, 264 which may be pending before an Assessing Officer on the date on which an application is filed. VSV scheme can be availed only where appeal are pending so it is not possible to cover proceedings before Settlement Commission. (read more) |