Whether non-resident taxpayers will be allowed to make payments under VSV through foreign bank account? Presently, such is not permissible mode. NR taxpayers to get payment through Indian bank account of associates or authorised person. Such process may involve time and hence may be a cause for delay in payment.

Suppose there is patent error in the certificate issued under s. 5(1) by DA and is later on rectified by DA, whether period of 15 days for making payment shall be reckoned from date of rectified order?

In case of a declarant who is a company, will benefit of immunity from penalty and prosecution be extended to directors and principal officer of the company as well – say, in case of settlement of TDS dispute? Similarly, whether such immunity extends to partner of LLP/firm where declaration is filed by LLP/firm?

Consider a case – Assessee was a US resident which had invested in Indian company through a Mauritia’s based company (SPV). The SPV sold shares of Indian company and claimed treaty benefit. In assessment, treaty benefit was denied on the grounds that SPV is not the beneficial owner and income is to be taxed in the hands of principal investor ie US resident.
A) If the Mauritius company settles under the scheme, whether the US resident investor will get protection under the scheme ie will the proceedings in case of US investor be dropped? Will the the treatment be on similar lines as protective assessessment – Refer Q35 of the FAQ dt 4 March 2020?

If 201 order is settled under VSV and taxes are paid by the deductor, then while computing disputed tax liability for 143(3) order, no disallowance u/s 40(a)(ia) is to be taken into account. As clarified, benefit of payment under VSV will be available to the deductor in the same year in which section 40(a)(ia) additions are made. However, as per clarifications issued, deductee will get credit of taxes paid by deductor on the date of settlement of dispute and consequentially interest u/s 234A/B/C will be applicable i.e. where 201 order for FY 2015-16 is settled by in FY 2019-20 by the deductor, then deductee will be required to pay interest u/s 234A/B/C till FY 19-20. Is this not a hardship caused to deductee, without being at fault?

As per section 3 of the amended bill, where the disputed tax liability is computed by the DA and the amount is payable before 30 June 2020, then 100% of the disputed tax is to be paid and if however, the same is determined by the DA and the amount is paid after 30 June 2020, then 110% of the disputed liability is to be paid.

A) In a case, where the disputed tax liability is determined by the DA on 25 June 2020, taxpayer has time of 15 days ie till 10 July 2020 to pay the disputed tax, then will it be eligible for 100% of disputed tax payment (even though payment is made after 30 June 2020) since the amount is payable before 30 June 2020– Section 3 does not mention that the amount is to be paid before 31 March 2020 (now 30 June 2020) to be eligible for 100% disputed tax liability but FAQ 28 dated 4 March 2020 states that the payment has to be made before 31 March 2020 (now 30 June 2020) to be eligible to pay 100% of disputed tax?

B) If the answer to the above is no, where taxpayer makes partial payment (say 80%) before 30 June 2020in relation to declaration filed, and balance payment (say 20%) is made after 30 June 2020 but within outer limit of 15 days, whether 10% additional amount under s. 3 of VSV can be restricted to unpaid amount (say on 20% of the disputed tax liability)?

The assessment order/intimation contains certain issues which are rectifiable under section 154 of the Act. A rectification application is filed before the AO but pending to be disposed off. In such a case, whether the tax liability can be rectified by the AO/ DA before computing the final amount payable under the scheme? Or the taxpayer will be required to pay whole amount computed as per the assessment order passed since rectification application is pending to be disposed?

If quantum is settled and penalty is levied but no appeal is filed and time limit to file such appeal has not expired, whether in such case, the penalty would also be waived?

Where an application for waiver of interest is pending before the Competent authority, or where the application for waiver of penalty is pending before the competent authority, can one settle the same under the scheme by paying 25%/30% of the amount?

Suppose if in the quantum appeal, only one of the issue is challenged and one more adjustment made by the AO is accepted. On settlement of the appeal on a particular issue, does the interest and penalty on the other accepted issue is also settled?