Step aimed to learn small and medium sellers/merchants to clear and settle their pending arrears amid Covid-19
Trader pleasant determination to price Rs.121.06 crore to state exchequer
CHANDIGARH: In a significant reprieve to the enterprise group particularly the small and medium businessmen to sail by means of these making an attempt occasions amid Covid-19, the Punjab Cabinet led by Chief Minister Captain Amarinder Singh on Monday permitted the ‘Punjab One Time Settlement Scheme for Recovery of Outstanding Dues-2021’ to clear and settle their pending arrears.
With implementation of OTS, the state exchequer would bear a monetary burden of Rs.121.06 crore.
Divulging the main points, a spokesperson of the Chief Minister’s Office mentioned that the scheme could be carried out from February 1, 2021 throughout the state underneath which all of the sellers whose assessments have been framed upto December 31, 2020 might apply underneath the scheme until April 30, 2021. The supplier may even submit further statutory types like C-forms which weren’t produced on the time of evaluation, with the appliance kind and must make the self-assessment and submit the proof of fee web tax payable because the consequence of settlement. The involved Ward in-charge would situation an order of settlement which might not be reopened in any continuing by manner of evaluation or revision.
It could also be recalled that COVID-19 has resulted in unprecedented scenario for all sections of the society. Business group, particularly, the small sellers have suffered loads because of lockdown and subsequent decline within the enterprise exercise. Various commerce associations raised a priority that they’re dealing with difficulties in procuring statutory types prescribed underneath the Central Sales Tax Act, 1956 for availing concessional/nil fee of tax on interstate transactions. They additionally urged the state authorities for settling their excellent dues by introduction of One Time Settlement Scheme for the clearance and settlement of excellent arrears underneath Punjab Value Added tax Act, 2005 and Central Sales tax Act, 1956.
Notably, GST has been carried out in your complete nation with impact from July 1, 2017. For the sleek functioning in GST regime, it’s obligatory and expedient to dispose of the pending assessments underneath the Punjab VAT Act, 2005 and CST Act-1956. In addition to this, additionally it is obligatory that the arrears in legacy circumstances be recovered and settled as early as doable.
Assessments pertaining to the monetary yr 2013-14 had been framed for 47,627 sellers. With the implementation of the OTS, from the assessments performed for the yr 2013-14, for 40,000 plus sellers with demand upto Rs.1 lakh would get 90% aid in tax and 100% aid in curiosity and penalty. They could be required to pay solely 10 p.c of due tax and nil quantity on account of curiosity or penalty. Thus, these 40,000 plus sellers are required to deposit solely Rs.6.70 crores towards the overall demand of Rs.90.52 crores. Apart from this, 4755 sellers with calls for starting from Rs.1-5 lakhs would get 100% aid in curiosity and penalty within the assessments performed for the yr 2013-14.
Likewise, arrears of demand are pending for varied causes in 7004 circumstances pertaining to the monetary years from 2005-06 to 2012-13. With the implementation of this OTS, sellers in 4037 of these circumstances would get 90% tax aid and 100% aid in curiosity and penalty. They could be required to deposit Rs.51 lakhs solely to settle the excellent demand of Rs.9 crores. Furthermore, the litigation is predicted to finish in 763 extra circumstances pertaining to 2005-06 to 2012-13, as in these circumstances sellers would get 100% aid in curiosity and penalty, the spokesperson added.
