The scheme that came into effect on June 1 this year gives companies like Vodafone and Cairn, that are involved in retrospective tax disputes, an opportunity to settle the cases by paying only the tax arrears while the interest and penalty is waived off.
The declarations under this scheme may be made up to January 31, in respect of tax arrears and specified tax. The scheme was earlier suppposed to come to a close on December 31.
“In view of the representations received from various stakeholders and for the convenience of the taxpayers, the last date for availing the Direct Tax Dispute Resolution Scheme, 2016 has been extended up to January 31,” the Finance Ministry said in a statement here.
In order to reduce the pending litigation, the scheme was introduced by the Finance Act, 2016.
In the last budget speech, Finance Minister Arun Jaitley had said, “To give an opportunity to the past cases which are ongoing under the retrospective amendment, a one-time scheme of dispute resolution is proposed, in which, subject to their agreeing to withdraw any pending case lying in any court or tribunal or any proceeding for arbitration, mediation etc. under the Bilateral Investment Promotion and Protection Agreements, they could settle the case by paying only the tax arrears and the interest and penalty would be waived.