VIVAD SE VISHWAS SCHEME

  • Government launches Vivad se Vishwas scheme for relief to MSMEs for COVID-19 period, as announced in the Union Budget 2023-24
  • Under the scheme, Ministries have been asked to refund performance security, bid security and liquidated damages forfeited/ deducted during the COVID-19 pandemic.
  • Certain relief has also been provided to MSMEs debarred for default in execution of contracts during the COVID-19 period.
  • In case any firm has been debarred only due to default in execution of such contracts, such debarment shall also be revoked.
  • However, in case a firm has been ignored for placement of any contract due to debarment in the interim period, no claim shall be entertained.
  • No interest shall be paid on such refunded amount.

Additional benefits to eligible MSMEs, affected during the COVID-19 period:

  1. 95% of the performance security forfeited shall be refunded.
  2. 95% of the Bid security shall be refunded.
  3. 95% of the Liquidated Damages (LD) deducted shall be refunded.
  4. 95% of the Risk Purchase amount realized shall be refunded. 

Eligibility:

  • Registered as a Medium, Small or Micro Enterprise as per relevant scheme of Ministry of MSME on the date of claim by supplier/ contractor.
  • MSME could be registered for any category of Goods and Services.

What is Vivad Se Vishwas Scheme?

  • The Vivad Se Vishwas Scheme is a direct tax scheme.
  • Under this scheme, an individual taxpayer can claim full waiver on interest and penalty on the full and final settlement of the disputed tax amount.

Aims:

  1. Settling disputes between taxpayers and the income tax department.
  2. Minimize tax-related litigation.
  3. Generate revenues for the Government
  4. Assist taxpayers for ending any tax disputes
  5. Facilitate immunity from prosecution
  6. Provide waiver from payment of interest and penalty

Exclusions:

  • If the disputed tax amount is greater than Rs. 5 Crores
  • Cases initiated by the department under Income-tax Act, 1961 or under Indian Penal Code
  • Involving undisclosed foreign income and assets
  • Cases completed on the basis of information received from foreign jurisdiction
  • Cases where person is notified under Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 or Detained under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974

Cases covered under:

  1. Narcotic Drugs and Psychotropic Substances Act,
  2. Unlawful Activities (Prevention) Act,
  3. Prevention of Corruption Act,
  4. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act,
  5. Prevention of Money Laundering Act,
  6. Prohibition of Benami Property Transactions Act

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

About sree nivas

Check Also

green bond

Green Bond

Concept Green bonds have emerged as a financial instrument aimed at channeling investments into environmentally …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates