Industry views on direct tax dispute scheme will be considered: Revenue Secretary2 min read . Updated: 09 Feb 2020, 04:04 PM IST
- The scheme offers immunity from prosecution
- The Bill seeks to resolve ₹9.32 trillion worth tax disputes
NEW DELHI : Revenue secretary Ajay Bhushan Pandey said on Sunday that suggestions received from industry on the proposed scheme to resolve 4,83,000 direct tax related disputes will be considered for inclusion in the set of guidelines to make it a success.
At a post-budget interaction with businesses and traders in Kolkata, Pandey said that ‘The Direct Tax Vivad se Vishwas Bill, 2020’ is currently in Parliament and various suggestions have been noted. It incorporates the demand to include a scheme for tax disputes where assessment orders have been made but appeals have not yet been filed.
“Right now, the Bill is in parliament. These suggestions have been noted. As and when the Bill is passed, detailed guidelines will be issued. In the guidelines, we will see if these suggestions can be incorporated," said Pandey, who took questions from industry executives on budget proposals in the presence of finance minister Nirmala Sitharaman and other officials.
The Bill tabled in Parliament last Wednesday seeks to resolve pending direct tax disputes with an outstanding tax arrears of ₹9.32 trillion, a part of which could come to the exchequer if the scheme is a success. It will also free up courts and tribunals bogged down by prolonged litigation.
The scheme allows beneficiaries to pay the disputed tax arrears without interest and penalty if paid before 31 March. If paid later, but before the end of first quarter of FY21, the amount due will go up by 10%. The scheme also offers immunity from prosecution to those who sign up for it.
In case the tax dispute is over penalty, interest or fee, the settlement amount payable is 25% of the dues if paid before the end of March. If paid in the next quarter, the payable amount will go up to 30%.
Sitharaman told industry representatives on Sunday that the government wants to be in continuous engagement with the industry and be a facilitator rather than merely responding to the evolving global and domestic economic situation. Sitharaman and senior officials had on Saturday held similar interaction with industry executives and policy experts in Chennai.
The minister said that after the Parliament breaks for recess on 11 February, similar consultation will be held in other parts of the country too.
Officials, however, defended the budget proposals about dividends being taxed in the hands of shareholders and the increase in customs duty on certain products. Pandey said that taxation of dividend in the hands of recipient at applicable rates is important to keep tax system simple and to remove distortions.