The Commercial Taxes department has announced a one time settlement scheme (OTS) to to settle disputed tax under the legacy Acts like the Andhra Pradesh General Sales Tax Act 1957.
The scheme had been introduced as arrears of around ₹3,000 crore were pending in various stages of litigation and that the amount was not readily recoverable. The development follows request from the Commercial Taxes Commissioner for introduction of one time settlement scheme of tax arrears to realise the locked up revenue.
Similar one time settlement schemes had been implemented in Maharashtra, Karnataka, Kerala, Bihar and West Bengal in the past for realising the disputed taxes, Chief Secretary Somesh Kumar said in the order issued on Monday. According to him, the provisions under the OTS would apply for registered and unregistered dealers under the AP General Sales Tax Act, 1957, the Telangana Value Added Tax, 2005, the Central Sales Tax Act 1956 and the Telangana Entry of the Goods in Local Areas Act 2001.
Each year of assessment would be a distinct unit for settlement of disputes under the scheme and 100 % of undisputed tax would be payable. For the dealers/ persons availing the scheme, interest and penalty would be waived and no refunds would be given.
Those interested could apply for availing of the OTS between May 16 and June 30. This would be followed by scrutiny of applications from July 1 to 15 and submission of settlement letter by tax payer between July 16 and August 15. The OTS would be executed through online module and dealers who were no more in business could apply online in the respective jurisdictional circle/STU.
The applications would be scrutinised by a three-member committee and the committee should send a confirmation letter to the applicant by accepting/rejecting/modifying the proposal. On receipt of the confirmation letter, the applicant should make the payment and submit the details along with necessary documents and the application for withdrawal of the appeal.
The proceedings for settlement of balance tax, penalty and/or interest would be issued after realisation of the total tax payable and disposal of the case as withdrawn. For amounts higher than ₹25 lakh, instalment facility would be provided with four equal monthly instalments. Bank interest rates would be applicable for those seeking more instalments.
“Notwithstanding anything contained in any provisions of the respective acts, the appeal pending before the appellate authority or the Tribunal or the court in respect of any order or notice, shall be withdrawn fully and unconditionally by the applicant,” the Chief Secretary said in the order.
Scheme outline
Andhra Pradesh General Sales Tax — 40% of balance tax will be collected from dealer and remaining 60% of demand will be waived off.
Value Added Tax & Central Sales Tax — 50% of balance tax will be collected from dealer and remaining 50% of demand will be waived off.
Entry tax on Motor Vehicle & Goods — 60% of balance tax will be collected from dealer and remaining 40% of demand will be waived off.
