Latest Amendments in the “Vivad se Viswas Scheme”

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Latest Amendments in the “Vivad se Viswas Scheme”

1. Certain amendments in the “Vivad se Viswas scheme”have been approved by the cabinet. The amended bill is likely to be in public domain by this evening and passed by the Parliament in 1st week of March.
2.The CBDT desires that the entire department should be prepared with exact data in different appellate forum so that once the bill is passed assessees can be persuaded to apply for the scheme.
3. The amendments inter alia now would cover the application made u/s 264, search and seizure cases where the disputed tax is below Rs. 5 crores, cases where prosecution has been launched by other agencies and not by the department. The Rs. 5 crore limit is for one assessee but cumulative covering all the 6+1=7 years.
4. The report is by the CBDT from field functioneries.
5. Now there will be two rates under the VeV Act. In case of appeals, before the ITAT, HC and SC, if the department is in appeal (i.e. the assessee has won in the lower forum) then the assessee has to pay 50% of the disputed tax. The rate remains at 100% of disputed tax where the department has won the cases in lower forum and the assessee is in appeal. So the AOs are to calculate the amount of disputed tax in *each case* and be ready with the data.
 Special care should be taken for _cross appeals_. It may be noted that any assessee who wishes to avail the benefit of the scheme has to pay tax on the entire amount disputed tax be it in 50% block or 100% block.
6. The AO have also to segregate the categories of the assessees into segments like _Central PSU_, _State PSUs_, _Government Contractors_, _Large Assessees_, _Foreign Companies_. Please use abbreviations of CPSU, SPSU, GC, LA and FC respectively for the respective category.
7. The AOs have also to mention the issues i.r.o. each case like whether its penny stock case, addition made u/s 68, OCM case, case of bogus expenditure etc.
8. A list of appeals pending before the CIT(A) is also to be prepared in the same proforma as was given for ITAT. The AO should also be ready with the classifications in each such case as is mentioned in 5 to 7. However for appeals pending before the CIT(A) there would no 50% block.
9. The classifications as mentioned in 5, 6, 7 & 8 has also been prepared. Once the proforma is sent the same has to be filled up and mailed back to CBDT.
10. It has also been directed by the Chairman that every AO must check each and every entry both in arrear demand and current demand segment and ensure that all petitions u/s 154 are disposed of and appeal effect given within next 4 days.

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