Has the Falling Rupee Sweetened Vivad Se Vishwas Scheme for MNCs

There is no denial that the Government of India is taking all efforts to improve the ‘Ease of Doing Business’ in the country, especially for MNCs. In this regard, it has rolled out a direct tax dispute resolution scheme titled ‘Vivad se Vishwas’ scheme (“VSV Scheme”) for taxpayers who have pending tax disputes at any appellate forum in India. The biggest benefit of this scheme is that if the taxpayer pays the disputed tax amount before the prescribed date, then, there is complete waiver from penal interest / penalty and potential prosecution. With such attractive monetary benefits, the VSV Scheme is surely a lucrative option for those litigating taxpayers who are not very strong about either the merits of their case or about the chances of success.