Gateway Distriparks Limited, a prominent player in India's logistics and rail freight industry, has received final settlement orders from the Income Tax Department under the Vivad Se Vishwas Scheme 2024. The orders pertain to multiple assessment years across both Gateway Distriparks Limited and its former entity, Gateway Rail Freight Limited.

On April 23, 2025, the Principal Commissioner of Income Tax (PCIT), Mumbai, issued Settlement Orders in Form 4 for the following Assessment Years:

• 2018-19 & 2019-20 for Gateway Distriparks Limited (formerly Gateway Rail Freight Limited)

• 2017-18 & 2020-21 for the erstwhile Gateway Distriparks Limited

These orders were part of the final tranche of settlements communicated by the Income Tax Department under the scheme.

Significant Reduction in Tax Liability

Originally, the company faced a tax demand of INR 5,49,88,545. However, under the Vivad Se Vishwas Scheme, this amount has now been reduced to a final tax liability of INR 2,19,57,149, offering considerable relief.

The company has already paid this reduced amount while filing Form 3, which is a required step under the scheme to confirm willingness for settlement. This payment ensures that:

• No additional penalties or interest will be levied

• All pending demands for the mentioned assessment years are now closed

No Material Operational or Financial Impact

While the reduction in tax dues is financially beneficial, the company clarified that this resolution does not have a material impact on its overall operations or other business activities. The payment had been accounted for earlier, and no additional financial provisioning is required.

Importance of Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme was introduced by the Government of India to reduce litigation and facilitate quick resolution of pending income tax disputes. By opting into the scheme, entities like Gateway Distriparks can resolve past tax disputes without lengthy court processes and without penalties and interest.

For Gateway Distriparks, this move:

• Improves tax compliance standing

• Eliminates legacy issues related to income tax disputes

• Provides clarity for future financial planning and audits

Strategic Focus on Governance and Compliance

By settling its disputes promptly, Gateway Distriparks has reinforced its commitment to regulatory compliance. The company’s proactiveness in resolving tax issues without delay demonstrates:

• Strong governance standards

• Willingness to work within legal frameworks

• Focus on clean financial reporting and transparency

This update will reassure stakeholders, investors, and auditors that all legacy tax matters for the mentioned years have been conclusively resolved.

Conclusion

The successful conclusion of these tax disputes under the Vivad Se Vishwas Scheme is a positive governance milestone for Gateway Distriparks. It removes financial uncertainty, ensures better tax positioning, and aligns the company with government-led initiatives for dispute resolution. With no further impact on operations, Gateway Distriparks continues to focus on growth and efficient logistics service delivery.

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