The trust scheme is proving to be very effective in resolving tax disputes by the central government. About 5 lakh organizations involved in tax litigation with the government have taken advantage of this project. It has helped settle about Rs 83,000 crore. A top finance ministry official made the claim on Sunday.
Finance Minister Nirmala Sitharaman announced the Diput to Confidence (VSV) project in her budget for the fiscal year starting April 2020 to settle pending tax disputes. Attempts were made to embezzle Rs 93.32 lakh crore while 4.8 lakh appeals were pending in various appeal forums. Finance Secretary Ajay Bhushan Pandey said in an interview, “Out of the pending cases, 966,000 have planned to settle about Rs 63,000 crore (disputed tax).”
He said the government had extended the project by one month till January 31 in view of the rise of VCV applications in December 2020 and meeting the demands of taxpayers. Under this scheme, the companies have to pay the required taxes and the litigation is closed and the penal activities are over.
He added, “Under this, more than Rs 1 lakh crore of tax claims raised due to wrong entry have been granted.” Interest, fines and lawsuits have been withdrawn from the forum once an organization has come under the VCV scheme and paid the appropriate fees. The secretary said, “We have extended this date to January 31. So we are expecting more to be achieved. So that pending cases will be dealt with under the trust scheme.” The option of resolving disputes is in the private sector.