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CBDT issues Clarification on Extended Payment Date under Vivad se Vishwas Scheme

cbdt-issues-clarification-on-extended-payment-date-under-vivad-se-vishwas-scheme

CBDT vide Circular No. 18/2020 dated 28.10.2020 has clarified that where a declarant files a declaration under Vivad se Vishwas on or before 31st December 2020, the designated authority, while issuing the certificate under sub-section (1) of section 5 of the Direct Tax Vivad se Vishwas Act, 2020, shall allow the declarant to make the payment without additional amount on or before 31st March 2021.


The Central Government vide the Notification No. 85/2020 dated 27th October 2020, has extended the date for payment without additional amount under Vivad se Vishwas Scheme from 31st December 2020 to 31st March 2021. The said notification has also notified the last date for filing declaration under Vivad se Vishwas Scheme as 31st December 2020.


Under the existing provisions of sub-section (2) of section 5 of the Direct Tax Vivad se Vishwas Act, 2020, the declarant is required to pay the amount within a period of 15 days from the date of receipt of certificate from the designated authority. 


However, as per the aforesaid notification, a declarant who files declaration on or before 31st December 2020 can make the payment without additional amount on or before 31st March 2021. Hence, requiring payment by the declarant within a period of 15 days from the date of receipt of certificate from the designated authority may result into undue hardship for the declarant in whose case the period of 15 days expires before 31st March, 2021. 


Hence, in order to mitigate undue hardship and remove difficulty that may be caused by the aforesaid requirement of payment within 15 days from the date of receipt of certificate from the designated authority, the Board has issued this clarification.


It should be remembered that 31st December 2020 is the last date for filing for the declaration by the assessee who wishes to avail the amnesty scheme. After which, he cannot avail this scheme unless again extended.


However, the assessee shall have the period up to 31st March 2021 for making the payment of disputed tax without any 10% additional payment.


Read the full text of the circular No. 18/2020 dated 28.10.2020 on Extended Payment Date under Vivad se Vishwas Scheme


Circular No. 18/2020


F.No. IT(A)/1/2020-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

****


Dated: 28th October, 2020


Subject: Clarifications in respect of the Direct Tax Vivad se Vishwas Act, 2020 - reg.


With the objective to reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process, the Direct Tax Vivad se Vishwas Act, 2020 (hereinafter referred to as 'Vivad se Vishwas') was enacted on 17th March, 2020. The provisions of Vivad se Vishwas had been amended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 to provide certain relaxation in view of the COVID-19 pandemic and also to empower the Central Government to notify certain dates.


2. The Central Government vide the notification S.O. 3847(E), dated 27th October, 2020, has extended the date for payment without additional amount under Vivad se Vishwas from 31st December, 2020 to 31st March, 2021. The said notification also notified the last date for filing declaration under Vivad se Vishwas as 31st December, 2020.


3. Under the existing provisions of sub-section (2) of section 5 of the Vivad se Vishwas, the declarant is required to pay the amount within a period of 15 days from the date of receipt of certificate from the designated authority. However, as per the aforesaid notification, a declarant who files declaration on or before 31st December, 2020 can make payment without additional amount on or before 31st March, 2021. Hence, requiring payment by the declarant within a period of 15 days from the date of receipt of certificate from the designated authority may result into undue hardship for the declarant in whose case the period of 15 days expires before 31st March, 2021.


4. In order to mitigate undue hardship and remove difficulty that may be caused by the aforesaid requirement of payment within 15 days from the date of receipt of certificate from the designated authority, in exercise of powers conferred under section 10 and 11 of Vivad se Vishwas, it is hereby clarified that where a declarant files a declaration under Vivad se Vishwas on or before 31 st December, 2020, the designated authority, while issuing the certificate under sub-section (I) of section 5 of the Vivad se Vishwas, shall allow the declarant to make payment without additional amount on or before 31 st March, 2021. 


(Ankur Goyal)

Under Secretary to the Govt. of India


Download Copy of CBDT Circular No. 18/2020 dated 28.10.2020 on Clarification on Extended Payment Date under Vivad se Vishwas Scheme in pdf format

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