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Authority of Advance Ruling disputes not within Vivad Se Vishwas ambit

Authority of Advance Ruling disputes not within Vivad Se Vishwas ambit

Tax disputes pending before the Authority of Advance Ruling (AAR) will not be covered under the Vivad Se Vishwas scheme, which aims at settling pending direct tax disputes in the country.

The Central Board of Direct Taxes (CBDT) issued a set of 55 questions and answers on Thursday to clarify various aspects of the tax amnesty scheme, which allows taxpayers to settle disputes by paying interest and penalty.

The scheme was announced in the budget to bring down pending litigation and a bill to give it shape was approved by Lok Sabha.

“After introduction of Vivad se Vishwas in Lok Sabha, several queries have been received from the stakeholders seeking clarifications in respect of various provisions contained in the scheme...The FAQs contain clarifications on scope/eligibility, calculation of disputed tax, procedure related to payment of disputed tax and consequential benefits to the declarant,” the CBDT said in a statement.

The apex direct taxes body said the scheme will not be available for disputes pending before AAR, but in cases where a writ is filed against AAR order and such AAR order determines the total income of the assessee, taxpayers can avail themselves of the scheme.

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