Indirect Tax DRS, 2016

By Vijay Kumar

CHAPTER XI of the Finance Act, 2016 provides the legal framework for the The Indirect Tax Dispute Resolution Scheme, 2016 which comes into operation from tomorrow.

Whereas the CBDT appears to be fully geared up to cobble Direct Taxes through this scheme and has issued the Direct Tax Dispute Resolution Scheme Rules, 2016 on 26.05.2016 by notification 35/2016 and launched a Publicity campaign, the CBEC is sadly wanting on the execution front. In fact, the CBDT had issued a Press Release on 12th May 2016 requesting the stakeholders and general public to bring out issues/points which in their opinion would require further clarification/guidance [See DDT 2845].

Hopefully, the CBEC has not altogether forgotten about it. Rules are to be made for carrying out the provisions of the Scheme, form and manner of declaration is to be prescribed and all this has to be done by today for the scheme is to become operational tomorrow.

Perhaps, today evening the notification and Circular would be issued.

It seems that the Board is not that enthusiastic about the Scheme for the TRU letter D.O.F. No.334/8/2016-TRU dated February 29, 2016 makes a passing remark about the scheme in the following manner -

15.5 Indirect tax Dispute Resolution Scheme, 2016

Indirect tax Dispute Resolution Scheme, 2016, wherein a scheme in respect of cases pending before Commissioner (Appeals), the assessee, after paying the duty, interest and penalty equivalent to 25% of duty, can file a declaration, is being introduced. In such cases the proceedings against the assessee will be closed and he will also get immunity from prosecution. However, this scheme will not apply in certain specified type of cases.

To understand more about the Dispute Resolution Scheme which itself may become mired in many disputes, read -

Indirect Tax DRS, 2016 - another ploy to earn Revenue

Indirect Tax Dispute Resolution Scheme, 2016

Has Budget 2016 helped much in reducing scope of vexatious litigation?

New Dispute Resolution Scheme, 2016 in CBDT and CBEC

Indirect Tax Dispute Resolution Scheme, 2016 - will this really result in reduction of litigation?