Question And Answer
Subject: Direct Tax Vivad se Viswas Act.
Querist: Disha shah
Answered by:
Tags: ,
Date: November 4, 2021
Query asked by Disha shah

Assessee has filed declaration under DVSVS Act  , and out of total tax payable under the scheme, paid substantial amount before 30.09.2021. Whether assessee has to pay additional tax @10% on gross tax payable under the scheme or on the net amount payable after deducting the amount paid before 30.09.2021. PCIT has considered additional tax @ 10% on the gross amount payable under DTVsVAct.  Please guide

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Answer given by

31 -10 -2021 was Last date for beneficial payment under the VSV Act, 2020 extended by CBDT, vide Notification No.75 of 2021 dated June 25, 2021(2021) 435 ITR (St) 25

Please refer CBDT Circular No. 18 of 2020 dated October 28, 2020 428 ITR (St) 104 relaxing the period of 15 days from the date of issuance of Form 3 to make the payment under the scheme . As per the Circular the declarant can make the payment without additional amount on or before 31 St March , 2021 ( Now extended up to 31-10 -2021 ) . CBDT issued Circular 21 of 2020 (2020) 429 ITR (St) 001with a view to provide further clarifications Q. No. 87 . and Answer state that ,once the required amount of disputed penalty has been paid by the declarant , interest relating to such penalty would be waived . The issue being debatable the declarant may not get the concessional rate as applicable , up to 30-9 -2021 . In case the Designated levies 110% of the tax in dispute on entire amount the assessee may have to pay 110 % of whole of disputed amount of tax . The only remedy is available is to file writ before High Court .

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