Re: What happened if tax not paid on or before 31 October 2021.
AS PER VSV SCHEME TAX IS PAYABLE BY 30/09/2021 ,IF NOT PAID THEN 110%
What happened if not paid on or befor 31/10/2021.
Please reply
The Central Board for Direct Taxes (CBDT) vide Circular No. 75 of 2021 dated June 25, 2021, inter alia, has stated that the last date for payment under the Direct-tax Vivad Se Vishwas Act, 2020 (VSVA) with additional amount would be October 31, 2021.
It is pertinent to note that, as per Form 3 i.e., Certificate under section 5(1) of VSVA, it is clarified that the declarant is directed to make the payment of sum payable within thirty days (15 days as per the VSVA) from the date of receipt of the certificate. In case of non-payment of amount payable within the said period, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.
The above-mentioned period of 15 days was relaxed by the CBDT vide Circular 18 of 2020 dated October 28, 2020 on account of undue hardship faced by the taxpayers and a date of March 31, 2020 was introduced as the last date to make payment without any additional amount.
Subsequently, this date has been extended on account of the 2ndwave and consequential lockdown. Finally, October 31, 2021 has been considered as the last date to make payment with an additional amount.
Therefore, on a combined reading it can be understood that in case of non-payment by October 31, 2021, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.
The Central Board for Direct Taxes (CBDT) vide Circular No. 75 of 2021 dated June 25, 2021, inter alia, has stated that the last date for payment under the Direct-tax Vivad Se Vishwas Act, 2020 (VSVA) with additional amount would be October 31, 2021.
It is pertinent to note that, as per Form 3 i.e., Certificate under section 5(1) of VSVA, it is clarified that the declarant is directed to make the payment of sum payable within thirty days (15 days as per the VSVA) from the date of receipt of the certificate. In case of non-payment of amount payable within the said period, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.
The above-mentioned period of 15 days was relaxed by the CBDT vide Circular 18 of 2020 dated October 28, 2020 on account of undue hardship faced by the taxpayers and a date of March 31, 2020 was introduced as the last date to make payment without any additional amount.
Subsequently, this date has been extended on account of the 2ndwave and consequential lockdown. Finally, October 31, 2021 has been considered as the last date to make payment with an additional amount.
Therefore, on a combined reading it can be understood that in case of non-payment by October 31, 2021, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.
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