#Vivad se vishwas Scheme

[babatax]

Vivad Se Vishwas Scheme 2: Penalty settlement for pharma soon

The Union government is likely to initiate the settlement of cases initiated by the National Pharmaceutical Pricing Authority (NPPA) for pharma companies under the Vivad se Vishwas scheme 2. This is the government’s attempt at tax resolution and reducing litigation. Sources told that the government may initiate the scheme to settle penalty cases against pharma companies. The scheme was first…

[aakashmalhotra]

Exploring the 2024 Union Budget: International Tax Insights

What are the key details that taxpayers should be aware of regarding the 2024 tax changes?

Key Highlights

The Finance Minister of India presented the Union Budget 2024 on 23 July 2024. The Budget includes several positive proposals, such as tax incentives for small businesses, increased funding for infrastructure development, and measures to support sustainable energy initiatives. Thus, the purpose of these suggestions is to boost the economy, e-commerce growth in India and tackle several issues. 

The Income Tax Act is due for a review, and the government has suggested much-needed changes, which are long overdue.

The base corporate tax rate for nonresident corporate taxpayers has been reduced from 40% to 35%.

The removal of angel tax provisions and the introduction of Equalisation Levy 2.0 will have a significant impact and are considered game changers.

The rationalization of the TDS Regime is a positive step forward and is sure to benefit the country's overall growth.

The removal of indexation to compute cost while calculating gains will significantly impact the capital gains tax regime. With the removal of the buyback tax, the tax incidence will now shift to the recipient.

The government has restated its commitment to simplifying processes, rationalizing GST rates, and expanding GST coverage to all sectors.

Customs duties will be waived for key sectors like healthcare, solar, critical minerals for renewable energy, and high-tech electronics. Additionally, there will be a reduction in customs duties for mobile phones, gold, precious metals, and the leather and textile industries.

Introduction of a one-time tax settlement scheme called Vivad se Vishwas (VSV) to help quickly resolve ongoing tax disputes.

The government of India is currently engaged in modernizing its international tax policies and administration. This initiative encompasses the implementation of a variety of tax incentives and rate reductions, as well as the substantial digitalization of critical processes.

Tax Insights: Introduction

During the presentation of the Union Budget for 2024-2025, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman underscored the budget's emphasis on several identified priorities aimed at expediting the journey toward the goal of Viksit Bharat.

The Finance Minister highlighted the government's ongoing efforts to simplify taxes, improve taxpayer services, and reduce legal disputes. Thus, the taxpayers have responded positively to these efforts.

In the fiscal year 2022-23, Smt. Sitharaman highlighted that 58 percent of corporate tax revenue was contributed by the simplified tax regime. Additionally, over two-thirds of taxpayers chose to adopt the new personal income tax regime based on the data available.

During the budget presentation, the Finance Minister also announced a number of attractive benefits designed to provide tax relief to salaried individuals and pensioners who choose the new tax regime. The Union Budget for the fiscal year 2024-2025 has incorporated a range of provisions and amendments, underscoring the government's dedication to establishing a streamlined and effective tax framework.

What is the major objective of the International tax sector?

International taxation serves various objectives, such as ensuring fair distribution of tax burdens, preventing the illegal avoidance of taxes, fostering economic growth, and facilitating international collaboration. However, the following are the primary purposes of the International tax sector.

Preventing Double Taxation

Encouraging International Trade and Investment

Preventing Tax Evasion and Avoidance

Equitable Distribution of Taxing Authority

The encouragement of International collaboration

Union Budget 2024 International tax updates

Following are the International tax sector updates:

Rationalisation of taxes and rates 

E-commerce operators from foreign countries, who supply or facilitate the e-commerce supply of goods or services into or relating to India, are currently burdened with India’s digital service tax, the equalisation levy, which is imposed at a significant 2 percent of the gross consideration. The impending discontinuation of this tax will bring a welcome relief and is scheduled to take effect from 1 August 2024.

From fiscal year 2024–2025, foreign companies will have a reduced corporate tax rate of 35 percent, down from 40 percent.

Relief/beneficial provisions 

Angel tax is a tax that private companies have to pay when they issue shares to someone at a price higher than the fair market value of the shares. The government's proposed Finance Bill aims to get rid of angel tax starting from April 1, 2024. This will be a great relief for companies that receive investments, including those from foreign sources.

The safe harbour rules will be expanded, and the transfer pricing assessment procedure will be streamlined.

IFSC-regulated finance companies may be exempt from thin capitalization rules as long as they meet certain conditions. This would put them on the same level as banks, some NBFCs, and insurance companies.

Other changes 

A new presumptive taxation regime is being considered for cruise ship operations conducted by non-residents in India, effective from the fiscal year 2024–25. This regime would deem 20% of the specified gross receipts as business income. Additionally, Cruise Ship Operators (CSOs) would be exempt from the presumptive taxation regime for non-resident shipping businesses. Specific group companies of these CSOs receiving lease rentals would also be eligible for tax exemption until the fiscal year 2029–30.

With effect from 1st October 2024, a significant change has been implemented in the tax treatment related to share buybacks by domestic companies. The tax burden has now been transferred from the company to the shareholders. The consideration received by the shareholder will be taxable as a "dividend" at applicable tax rates without any deduction for expenses, potentially resulting in a capital loss. Shareholders must proactively consider tax treaty benefits or dividend deductions available to them.

Before April 1, 2024, if a taxpayer transferred a capital asset through a gift, will, or irrevocable trust, it was not considered a "transfer" under the Income Tax Act. Therefore, no capital gains tax was applied to the transferor. Starting April 1, 2024, this rule will only apply to transfers by individuals or Hindu undivided families. This means that gifts or transfers to an irrevocable trust of any capital asset by other taxpayers will be subject to capital gains tax.

Procedural matters 

Currently, there is a time limit of seven years to pass an order deeming a person to be in default for failure to deduct or deposit TDS for resident payees. However, there is no such time limit for non-resident payees. Similarly, no time limit has been prescribed for cases of failure to collect or deposit tax at source (TCS). It is proposed to provide a common limitation period of six years for passing such an order for both resident and non-resident payees. A similar timeline has been prescribed for passing orders in the case of TCS provisions.

Effective April 1, 2025, a proposal to streamline compliance for non-resident liaison offices and introduce penalties for delayed compliance will take effect. Currently, the requirement dictates that the statement of activities must be filed within 60 days from the end of the fiscal year. The proposed changes will entail the specification of new timelines through established rules.

Applications for advance rulings that have been transferred from the Authority for Advance Rulings to the Board for Advance Rulings may be withdrawn by October 31, 2024, if they have not already been disposed of.

Non-locals and international businesses can settle ongoing legal disputes through the new conflict resolution program called the Direct Tax Vivad Se Vishwas Scheme 2024.

Last words

The national, state, and union territory governments of India are actively promoting foreign investment to drive economic transformation. While this presents promising opportunities, it's important for investors to approach this with caution, as both risk and opportunity are closely intertwined in India's investment landscape.

[visionias]

News Today | Daily Current Affairs

9th Feb 2023: World's First 3D Printed Rocket Engine Agnilet, Draft Vivad se Vishwas-II Scheme and more

Click the below link to download: http://www.visionias.in/resources/daily_current_affairs.php?type=1

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Finance Minister Nirmala Sitharaman tabled the Union Budget 2023-2024. Like previous Union Budgets, this fiscal year focuses on Inclusive Development (financial inclusion of small Businesses and support ease of doing business), promoting Public-Private Partnerships, Skilling (teaching-upskill), and setting off medium to long-term national development programs. In the previous blog, we set specific expectations out of the Union Budget for startups and businesses. Here is a roundup of Union Budget 2023 highlights.

Key Union Budget 2023 Highlights

The ease of doing business just got easier: 

More than 39,000 compliances were reduced, and over 3,400 legal provisions were decriminalized. Govt introduced the Jan Vishwas Bill to amend 42 central acts to further trust-based governance at all levels. Decriminalizing offenses in this context means a specific number of minor economic offenses which were earlier punishable with imprisonment will now be a penalty that a governing body would levy with revised fines and penalties.

The National Data Policy will allow access to anonymous data to create risk-based profiles to further the creation of adaptive KYC for Digital India. Government bodies will leverage Business PAN as the key identifier for assessing and accessing company data. It will reduce the complexity of doing business as it will reduce the usage of over 13 different business IDs, such as EPFO, ESIC, GSTN, TIN, TAN, and PAN, used to apply for various government approvals.

MSMEs Unbound:

Union budget 2023 focused mainly on the Micro, Small, and Medium Enterprises (MSMEs) sector. 

FM Nirmala Sitharaman declared the Vivad Se Vishwas scheme for failing MSMEs. MSMEs will receive 95% of the performance security from the government under this scheme in cases of failure to execute contracts.

Another big step is to enable timely payments to MSMEs. A deduction for payments made to MSMEs will only be allowed when it is paid off.

Extension of ECLGS To focus on the hospitality sector, the Finance Minister announced the extension of ECLGS up to March 2023. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched amid the Covid-19 pandemic to help MSMEs cope with pandemic losses and was extended up to March 31, 2022. Considering the following aspects, the ECLGS will be extended up to March 2023, and its guarantee cover will be expanded by Rs 50,000 crore to a total surface of Rs 5 lakh crore.

Govt. will Revamp Credit Guarantee Trust for small micro-enterprises scheme (CGTMSE) with an additional infusion of 9000 Cr. It will allow for two lakh crores of rupees in collateral-free guaranteed credit. Furthermore, credit costs will be reduced by about 1%.

For presumptive taxation of small businesses and professionals:

The turnover limit for small businesses was expanded to Rs 3 crore from earlier Rs 2 crore, 

For certain professionals, it was broadened to Rs 75 lakh from earlier Rs 50 lakh.

Presumptive taxation can only be used when the value of cash receipts is at most 5 percent of the total value of the receipts.  Small businesses and professionals need not maintain their books of account and get their accounts audited, which relieves tedious tax filing exercises.

Reduction of customs duty on specific items and customs duty exemption on iron and steel scrap will contribute to the growth of MSMEs.

The government extends customs duty exemption to capital goods and machinery imports used to manufacture lithium-ion cells for EV batteries.​​ This cost drop will aid electric vehicle growth and help businesses produce EVs at a lower manufacturing cost.

The government extended the scope of the current DigiLocker to assist innovation in the fintech industry with Entity DigiLocker. Soon, Entity DigiLocker will allow MSMEs, companies, and charitable trusts to not only store but also share documents securely with authorities, regulators, banks, and other business entities.

Extended Tax holidays and a little more for StartUps: 

The Centre announced tax holidays along with many regulatory changes for Startups. They will be listed below:

FM Sitharaman extended the Tax Holiday Scheme for startups till March 31, 2024, which means that startups incorporated till the latest date next year can avail of tax benefits. The tax holiday scheme was earlier available for startups incorporated till March 31, 2023. Other Tax benefits are that the eligible start-ups incorporated before 1 April 2024 also stand to enjoy these tax measures, which are deferral of ESOP taxation under Section 192(1C), relaxation on carry-forward, and set-off of losses under Section 79, angel tax exemption.

The Budget 2023 provided relief to startups by giving the benefit of taking forward losses on a change of shareholding of startups from seven years to ten years. The condition of continuity of a minimum of 51% shareholding to offset carried-forward losses is relaxed for eligible startups if all company shareholders continue to hold those shares.

Govt. is widening the scope of Angel Tax to include non-resident investors. Levy of angel tax in the hands of private companies where consideration for issue of shares is higher than fair market value.  

As per the said section, the scope of this angel taxation specifically included only residents thus far.

However, the budget proposes to omit ‘resident’ from the said section with effect from 01 April 2024, thereby widening the ambit of taxation in the hands of startups to include investment received from non-residents.

Despite rapid modernization, India is deeply an agriculture-based economy. However, there are still a lot of relevant pain points within the sector that need to be solved to allow the industry to flourish. To facilitate this:

The government has created an Agriculture Accelerator Fund that will encourage new solutions and startups within the space and create a platform to promote information sharing amongst farmers.

Because of increased emphasis on digital payments, Govt. proposed the digitalization of 63,000 primary agricultural credit societies through an investment of INR 2516 crores through the Digital Agriculture Infrastructure Scheme.

Disease infestation has been a dire problem affecting 35% of total crop production. The Atma Nirbhar Clean Plant Program, with a budget allocation of Rs 2200 crore, will offer farmers access to disease-free planting material and other facilities.

The government has taken several steps to promote startups in the country. Under the Startup India initiative, the Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of the business cycle of a startup.

Green power was at the forefront of the 2023 Union Budget. The government is particularly keen on promoting solutions and encouraging people to avoid using non-green energy solutions. Govt. announced numerous policies to promote less disastrous alternatives – The National Green Hydrogen Mission with an allocation of Rs. 19,700 crores and 35,000 Cr. for the energy transition.

There have been few technological enhancements as pivotal as AI. Recognizing the sheer value that greater integration of AI can add to the economy, the government will create a National Data Governance Policy that will allow access to anonymized data and set up three AI research centers.

Indirect Taxes and Custom Duties were relaxed 

Indirect taxes like GST and Customs form a significant part of the government’s revenue and deeply impact daily lives and manufacturing costs. Here below are the changes announced in the Union Budget 2023:

Goods and Services Tax: ITC will not be available regarding goods or services used for activities relating to corporate social responsibility.

Customs duty: As part of rate rationalization of the customs duty rate structure, BCD, SWS, and AIDC rates on several goods, other than textile and agriculture, will be reduced to 13% from 21%. Details are awaited for the list of items covered under the 13% slab.

Certain items like polished diamonds, chemicals needed for petroleum products, camera lenses for cellular mobile phones, and steel scrap have been reduced, and eventually, these items will get cheaper.

Other things that will become cheaper include parts of open cells of TV panels, Denatured ethyl alcohol used in the chemical industry, and compounded rubber.

FM extended customs duty on camera lenses and their inputs or parts for use in the manufacture of the cellular mobile phone camera module reduced to zero and concessional duty on lithium-ion cells for batteries for another year.

Increase in CAPEX to boost Indian Infra:

Infrastructure is the backbone of any economy. To ensure that India is as robust as possible, the government has increased the capital expenditure allocation to Rs. 10 lakh crore, a massive 33% increase. It will significantly benefit logistics-heavy businesses and sectors in India and make transportation less hassle for Indian entrepreneurs. Reduction in logistics costs will give a much-needed boost to commerce in Tier 2 and 3 cities. 

Stepping into the future

Looking at the Union Budget 2023 highlights, the government has pushed financial inclusion and digitalization of finances across industries. In this Union Budget, the FM extended financial aid to businesses, digitalized the agriculture industry, relaxed many business regulations to attract FDI, and boosted capital expenditure to support business growth. In summary, the budget is aspirational and grounding, with a plan for sustainable development and making India an economic superpower. 

[babatax]

Vivad Se Vishwas Scheme: New window to settle pending tax demands & litigations opens on Oct 1

The Ministry of Finance has notified the Direct Tax Vivad Se Vishwas Scheme, 2024 which will come into effect from October 1, 2024. This scheme aims to reduce income tax litigation and allows taxpayers to settle income tax appeals, writs and petitions that are pending before various appellate authorities including the Supreme Court and high courts as of July 22, 2024. “In exercise of the powers…

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केंद्रीय वित्त मंत्री श्रीमती सीतारमण जी ने 1 फ़रवरी 2020 को केंद्रीय बजट पेश करते हुए विवाद से विश्वास स्कीम 2021 की घोषणा की है। जिसका उद्देश्य इनकम टैक्स से संबंधित विवादों में से है इसके साथ ही विवादित करो से संबंधित प्रत्यक्ष या अप्रत्यक्ष सभी समस्याओ को सुलझाना है। आयकर विभाग के इस स्कीम से संबंधित पात्रताओं को पूर्ण कर उद्योगपतियों, कारोबार करने वाले नागरिको के लिए राहत का कारण है। इस स्कीम में शामिल होने वाले सभी कारोबारियों निर्धारित टैक्स जमा करने पर ब्याज, अर्थदंड तथा सज़ा से भी मुक्ति दी जायगी। इस आर्टिकल में हम आपको विवाद से विश्वास स्कीम से संबंधित सभी सही जानकारी दे रहे है जैसे – विवाद से विश्वास स्कीम 2021 क्या है ? विवाद से विश्वास स्कीम नई अपडेट, Vivad Se Vishwas Scheme डिक्लेरेशन के संशोधन की अनुमति ,आदि सभी जानकारी लेने के लिए आर्टिकल को पूरा पढ़े।

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Govt extends deadline for making payment under Vivad Se Vishwas scheme till June 30

Govt extends deadline for making payment under Vivad Se Vishwas scheme till June 30

Image Source : PIXABAY Govt extends deadline for making payment under Vivad Se Vishwas scheme till June 30 The government on Saturday extended the deadline for making payment under the direct tax dispute resolution scheme Vivad Se Vishwas by two months till June 30 due to a severe COVID pandemic. Also, it has extended the due date for issuance of notice for reopening of assessment by tax…

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अच्छा रिस्पॉन्स: विवाद से विश्वास योजना के तहत अब तक 1.48 लाख विवादित टैक्स मामलों को निपटाया, इससे सरकार को 54 हजार करोड़ रुपए मिले

अच्छा रिस्पॉन्स: विवाद से विश्वास योजना के तहत अब तक 1.48 लाख विवादित टैक्स मामलों को निपटाया, इससे सरकार को 54 हजार करोड़ रुपए मिले

Hindi News Business Tax ; Income Tax ; Vivad Se Vishwas Scheme ; Till Now, 1.48 Lakh Disputed Tax Cases Have Been Dealt Under Dispute Under Trust Scheme, The Government Got 54 Thousand Crores Rupees. Ads से है परेशान? बिना Ads खबरों के लिए इनस्टॉल करें दैनिक भास्कर ऐप नई दिल्ली40 मिनट पहले कॉपी लिंक टैक्स से जुड़े विवादों को निपटाने के लिए सरकार द्वारा शुरू की गई विवाद से विश्वास योजना काफी…

[newsyatra]

Vivad Se Vishwas Scheme Deadline Extended To 31st March 2021 - विवाद से विश्वास स्कीम की समयसीमा मार्च 2021 तक बढ़ी, करदाताओं को मिलेगी और राहत

Vivad Se Vishwas Scheme Deadline Extended To 31st March 2021 – विवाद से विश्वास स्कीम की समयसीमा मार्च 2021 तक बढ़ी, करदाताओं को मिलेगी और राहत

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Updated Tue, 27 Oct 2020 10:31 PM IST

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सरकार ने टैक्स विवादों के निपटान के लिए लाई गई ‘विवाद से विश्वास स्कीम’ की समयसीमा बढ़ा दी है। सरकार ने इसकी समयसीमा…

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CBDT प्रमुख का अधिकारियों को निर्देश, सभी टैक्सपेयर्स की टैक्स मांग की गणना 31 अगस्त तक करें

CBDT प्रमुख का अधिकारियों को निर्देश, सभी टैक्सपेयर्स की टैक्स मांग की गणना 31 अगस्त तक करें

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सभी टैक्सपेयर्स की टैक्स मांग की गणना 31 अगस्त तक करें नई दिल्ली.केंद्रीय प्रत्यक्ष कर बोर्ड (CBDT) के चेयरमैन…

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सरकार ने दी राहत: विवाद से विश्वास योजना के तहत डिटेल देने और टैक्स जमा करने की आखिरी तारीख फिर आगे बढ़ी

सरकार ने दी राहत: विवाद से विश्वास योजना के तहत डिटेल देने और टैक्स जमा करने की आखिरी तारीख फिर आगे बढ़ी

Hindi News Business Income Tax ; Vivad Se Vishwas Yojana ; The Last Date For Filing The Details And Depositing The Tax Under The Vishwas Scheme From The Dispute Was Again Extended. Ads से है परेशान? बिना Ads खबरों के लिए इनस्टॉल करें दैनिक भास्कर ऐप नई दिल्ली9 मिनट पहले कॉपी लिंक इनकम टैक्स डिपार्टमेंट प्रत्यक्ष कर (डायरेक्ट टैक्स) विवाद समाधान योजना ‘विवाद से विश्वास’ के तहत डिटेल देने की…

[technicalnextstuff]

Taxpayers Can Now File Declarations on E-filing Portal Under ‘Vivad Se Vishwas’ Scheme Taxpayers willing to avail the direct tax dispute resolution scheme 'Vivad Se Vishwas' can now submit their declarations on the income tax e-filing portal.