Re: Withdrawal of application under VSV
I have filed form No.1 & 2 under VSV and received form no.3 with 125% of normal tax being treated my case as search case in terms of FAQ 70, now if I don’t pay tax and opt not to file form 4, what will be repercussions.. and what will be effect of amount paid before opting for the scheme i.e. 20% payment made at first appellate stage to get stay on demand.. will it be considered as amount paid under VSV and will not be adjusted against final demand, if any on disposal of appeal.
To day CBDT issued Circular No. 04 /2021 dt 23 rd March 2021 they have clarified that , answer given in Q. No .70 is applicable to Search cases only . The assessee need not pay 125% . The CBDT has modified their earlier answer . The Assessee may write to the Designated Authority to send revised challan as per the new circular dated 23 -3 -2021 .
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