News

Companies send SOS to tax and audit experts for Vivad se Vishwas scheme

Companies send SOS to tax and audit experts for Vivad se Vishwas scheme

Several companies, including public sector units, are still reluctant to settle all their tax litigations through the Vivad se Vishwas scheme despite government prodding due to cash flow issues and likely impact on balance sheet, people privy to the development said.

These firms have reached out to their tax and audit advisors to help resolve these two issues, they said.

The scheme introduced in the recent Union budget allows taxpayers to settle disputes by paying outstanding taxes while getting a waiver of interests and penalties.

However, experts said, many firms lack the required cash flow while many are worried that availing the scheme would substantially impact their earnings per share (EPS).

Further, many companies, including ONGC, Gail Ltd, Power Finance Corporation, REC Ltd and Indian Oil Corporation, will be required to take approval from their shareholders if they decide to take advantage of the new scheme, they said.

Top