Vivad se Vishwas 2.0: Settlement Made Easy

Vivad se Vishwas Scheme 2024 (VVS 2024) aims to streamline the resolution of long-pending tax disputes at the Commissioner (Appeals) level, building on the success of its 2020 predecessor. This scheme is part of the government’s efforts to reduce litigation and expedite tax dispute settlements.

Key Features

Settlement Criteria

• Taxpayer Appeals: Pay 100% of the disputed tax amount.
• Tax Department Appeals: Pay 50% of the disputed tax amount.
• Additional Charges: 10% higher payment if the appeal was filed before January 31, 2020, or if the settlement is made after December 31, 2024.

Eligibility

• The scheme targets taxpayers with appeals pending at the Commissioner (Appeals) level, who prefer to resolve disputes without penalties or interest.
• It is particularly beneficial for those with weaker cases.

Differences from the 2020 Scheme:

• The 2020 scheme included cases where an appellate authority’s decision was pending and the appeal period had not expired; this is not explicitly covered in VVS 2024.
• Withdrawal of arbitration claims under international agreements was mandatory in the 2020 scheme but is not specified in VVS 2024.

Expert Insights

• Gautam Nayak, CNK & Associates: VVS 2024 mirrors the 2020 scheme’s structure, requiring taxpayers to pay disputed taxes based on who filed the appeal.
• Sandeep Bhalla, Dhruva Advisors: The scheme aims to quickly realize outstanding tax demands and reduce litigation, but its success may be limited due to numerous high-pitched faceless assessments.
• Gopal Mundhra, Economic Laws Practice (ELP): Points out key differences in the scope and requirements between the 2020 and 2024 schemes, especially concerning appellate authority decisions and arbitration proceedings.

Conclusion

Vivad se Vishwas Scheme 2024 is designed to provide an efficient and cost-effective solution for resolving tax disputes, primarily aiding taxpayers with weaker appeals. Its success will depend on the specific implementation details and taxpayer engagement.

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