Vivaad Se Vishwas scheme more successful than previous govt initiatives: Source – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/economy/policy/vivaad-se-vishwas-scheme-more-successful-than-previous-govt-initiatives-source/articleshow/80710483.cmsSynopsis

So far 125,144 cases have opted for the scheme which is 24.5% of the entire long pending 510,491 cases that were in various tax disputes at different legal fora.

The Vivad se Vishwas direct tax dispute resolution scheme has received overwhelming response – settlement amount of over Rs 97000 crore – in contrast to similar earlier schemes brought in 1998 and in 2016, a source in the department of revenue said.

So far 125,144 cases have opted for the scheme which is 24.5% of the entire long pending 510,491 cases that were in various tax disputes at different legal fora.

“The scheme has received 15 times better response in comparison to Direct Tax Dispute Resolution Scheme, 2016 (DTDRS) and with regard to the settled disputed amount it is 153 times of DTDRS, which is a huge success,” the source said. VSV scheme has been extended till the month-end.

Earlier schemes like Kar Vivad Samadhan Scheme, 1998 (KVSS) and Direct Tax Dispute Resolution Scheme, 2016 (DTDRS) could not gather much momentum.

The 1998’s KVS Scheme could gather merely Rs 739 crore with just few thousand cases while the 2016’s DTDR Scheme resolved just 86 hundred and odd cases only worth an amount of Rs 631 crore.

Sources said that Vivad se Vishwas Scheme has far-ranging impact on the ease of doing business as this would facilitate the taxpayers in dispute with tax administration to start afresh with clean slate and also help to clean the tax ecosystem of its litigation legacy forever, thereby saving on cost and resources for all the parties involved in litigations.

The VSV scheme has under its ambit all appeals or special leave petitions till Supreme Court pending as on January 31, 2020, and allows covering matters pending before Dispute Resolution Panel (DRP), or where directions have been issued but order not passed by DRP, and revision petitions (under section 264) filed on or before the date.

Sources said that the setting up of Dispute Resolution Committee (DRC) announced in the recent budget is in furtherance of the VsV Scheme as it aims to resolve litigations in a Tax Lok Adaalat format which would bring transparency and accountability in a faceless manner.

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