Income Tax Circular: Extension of Due Date under the Vivad Se Vishwas Scheme, 2024
The Government of India has announced an important update regarding the Direct Tax Vivad Se Vishwas Scheme, 2024. To facilitate taxpayers and ensure greater participation in the scheme, the due date for determining the amount payable under column (3) of the Table specified in Section 90 of the Scheme has been extended to 31st January 2025.
Key Highlights of the Circular
1. Revised Due Date:
• The time limit applies to invoices and debit notes issued in a financial year.
• ITC can only be claimed if the invoice or debit note is uploaded by the supplier in their GSTR-1 and reflected in the recipient’s GSTR-2B.
2. Objective of the Extension:
• A significant amendment in 2020 removed the link between the issuance date of the original invoice and the debit note for ITC eligibility. Now, the time limit under Section 16(4) applies based on the date of the debit note, irrespective of the financial year of the original invoice.
3. Applicability:
• For businesses filing their annual return earlier than 30th November, the date of filing becomes the deadline for claiming ITC.
4. Compliance and Benefits:
• For businesses filing their annual return earlier than 30th November, the date of filing becomes the deadline for claiming ITC.
Overview of the Vivad Se Vishwas Scheme, 2024
The Direct Tax Vivad Se Vishwas Scheme, 2024 is designed to reduce litigation and provide a structured mechanism for resolving tax disputes. It enables taxpayers to settle disputes by paying the specified amount and receiving immunity from interest, penalties, and prosecution.
Action Points for Taxpayers
1. Review Pending Disputes: Identify disputes that can be resolved under the Vivad Se Vishwas Scheme, 2024.
2. Calculate Payable Amount: Ensure accurate computation of the amount payable as per column (3) of the Table in Section 90.
3. Meet the New Deadline: Utilize the extended due date of 31st January 2025 to finalize payments and submissions under the scheme.
4. Seek Professional Assistance: Engage a tax consultant or advisor for a seamless resolution process under the scheme.
This extension reflects the government’s commitment to easing compliance and fostering a taxpayer-friendly environment. Taxpayers are encouraged to leverage this opportunity to resolve disputes and achieve closure on outstanding tax matters.
For professional guidance on the Vivad Se Vishwas Scheme, 2024, and related tax matters, connect with Corporate Genie, a trusted brand under Snehsanskriti Financial Solutions LLP.