Entities submitting declaration under the direct tax dispute resolution scheme 'Vivad Se Vishwas' have been allowed to revise them till the time tax authorities issue certificates containing details of tax arrear and the amount payable.
Issuing a set of FAQs on 'Vivad Se Vishwas' scheme, the Central Board of Direct Taxes (CBDT) has said one cannot benefit from the scheme in a case where proceedings are pending before Income Tax Settlement Commission (ITSC) or where writ has been filed against the order of ITSC.
The CBDT also said that in a case where Mutual Agreement Procedure (MAP) resolution has not been carried out or the assessee is still to accept MAP decision, the related appeal shall be eligible under 'Vivad se Vishwas'.
"In such a case, the declarant will be required to withdraw both the MAP application and appeal," it added.
The I-T department also said that a taxpayer would be allowed to make declarations in cases where the Authority for Advance Ruling (AAR) ruled in favour of the taxpayer and the department has filed an appeal before the High Court/Supreme Court and the total income of the taxpayer was quantified before AAR.
"Yes, the taxpayer is eligible since the income is quantifiable. In such cases, since the issue is covered in favour of the taxpayer, only 50 per cent of the disputed tax is payable," the CBDT said.
In October, the Modi government had to extend for the third time the deadline for making payment under the direct tax dispute settlement scheme 'Vivad Se Vishwas' by three months to March 31, 2021, considering the ongoing COVID-19 pandemic. However, declarations have to be filed by December 31, 2020.
With PTI inputs