Vivad Se Vishwas scheme an opportunity to resolve long-standing tax disputes: KCCI

Srinagar, Dec 19: A delegation from the Kashmir Chamber of Commerce and Industry (KCCI) participated in a comprehensive interactive session and seminar on the Direct Tax Vivad Se Vishwas Scheme (VSV) Scheme 2024.

The session, organized by the Income Tax Department at Aaykar Bhawan, Rajbagh, Srinagar, marked a significant step toward resolving regional tax disputes.

The KCCI delegation, spearheaded by Senior Vice President Ashiq Shangloo, engaged in detailed discussions with Income Tax officials regarding the scheme’s implementation and its potential impact on the business community. The scheme, which was announced in the Union Budget 2024-25, offers a comprehensive framework for resolving various tax-related disputes.

The interactive session chaired by Principal Commissioner IT J&K, Vikram Sahay covered extensive ground on dispute resolution mechanisms for appeals pending before appellate forums, writ petitions, and special leave petitions. Particular attention was given to cases before the Dispute Resolution Panel (DRP) where directions haven’t been issued by July 22, 2024, as well as matters where DRP has issued directions but assessment completion is pending.

“This scheme represents a significant opportunity for businesses to resolve long-standing tax disputes,” stated Ashiq Shangaloo, Senior Vice President of KCCI. “The interactive session has given our members valuable insights into the scheme’s mechanisms and benefits. We are particularly pleased with the clarity provided regarding cases where appeals were pending as of July 22, 2024.”

During the session, officials clarified that the scheme allows the settlement of cases whose cutoff date is July 22, 2024. Cases involving applications for condonation of delay filed before July 22, 2024, and subsequently admitted, are also eligible for the scheme. A crucial implementation detail discussed was the requirement for payment to be made within fifteen days of receiving the certificate, with no provisions for adjustment against expected tax refunds.

The KCCI views the Vivaad Se Vishwas Scheme as a transformative step toward reducing tax litigation and fostering a more business-friendly environment in Kashmir. During the interactive session, Income Tax Department officials provided crucial information about the scheme’s payment structure and timelines. They clarified that declarations filed on or before December 31, 2024, would be eligible for a more favourable payment rate as specified in column (3) of Section 90 of the Finance (No. 2) Act, 2024. However, declarations filed from January 1, 2025, onwards would be subject to different payment terms as outlined in column (4) of the same table. The Chamber acknowledges this tiered approach as an incentive for early resolution and will actively work to ensure its members are well-informed about these deadlines.