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News INCOME TAX

  • Mar 21, 2020
  • Vivad Se Vishwas: A shout-out to the tax-compliant

    The Vivad Se Vishwas (VSV) Bill 2020 has now been passed by both houses of Parliament. Finance minister Nirmala Sitharaman had announced this in her budget speech as part of GoI’s direct tax measures. It is in line with the Sabka Vishwas scheme, which aims at the resolution of legacy disputes in indirect taxes.

    VSV is expected to resolve a major part of direct tax litigations worth about Rs 4.8 lakh crore by way of remission and waiver of interest, and penalty for all pending disputes for which an appeal is filed. The provisions of the scheme also provide relief to taxpayers who have won their appeal at any stage by way of 50% remission of tax liability and 100% waiver of interest and penalty.

    The scheme will enable taxpayers, especially MSMEs, to settle their tax disputes and use their scarce resources for business, rather than litigating tax positions. It has been designed as a comprehensive dispute settlement mechanism and not one merely drafted to chase hoarders of black money.

    The tax administration has actively engaged with the stakeholders to work on the modalities of VSV. Many suggestions have already been incorporated in the Bill to make the amnesty scheme an effective one.