Re: Mutual Agreement Procedure (MAP)

Whether VSV Scheme can be availed where proceedings are pending before Mutual Agreement Procedure (MAP) authorities?

• 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 for such matters.  
• In such cases, if settlement is done under VSV of the appeals pending,  Mutual Agreement Procedure  (MAP)  can be withdrawn.  It however needs to be clarified by CBDT, that tax credit for taxes paid in India will be available to the foreign entity based on the DTAA provisions.  

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