CHANDIGARH: In a reprieve to the business community, especially the small and medium businessmen, to sail through during the pandemic times, the Punjab cabinet on Monday approved 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 financial burden of Rs 121 crore.
A government spokesperson said that the scheme would be implemented from February 1, 2021, across the state under which all the dealers whose assessments had been framed up to December 31, 2020, could apply under the scheme till April 30, 2021. The dealer can even submit additional statutory forms, like C-forms, which were not produced at the time of assessment, with the application form and will have to make the self-assessment and submit the proof of payment net tax payable as the result of settlement. The concerned ward in-charge would issue an order of settlement which would not be reopened in any proceeding by way of review or revision.
Various trade associations had raised a concern that they are facing difficulties in procuring statutory forms prescribed under the Central Sales Tax Act, 1956, for availing concessional/nil rate of tax on interstate transactions. They also urged the state government for settling their outstanding dues by introduction of One Time Settlement Scheme for the clearance and settlement of outstanding arrears.
For the smooth functioning in GST regime, it is necessary and expedient to dispose of the pending assessments under the Punjab VAT Act, 2005, and CST Act-1956. In addition to this, it is also necessary that the arrears in legacy cases be recovered and settled as early as possible.
Assessments pertaining to the financial year 2013-14 were framed for 47,627 dealers. With the implementation of the OTS, from the assessments conducted for the year 2013-14, 40,000 plus dealers with demand up to Rs 1 lakh would get 90% relief in tax and 100% relief in interest and penalty. They would be required to pay only 10% of due tax and zero amount on account of interest or penalty. Thus, these 40,000 plus dealers are required to deposit only Rs 6.7 crore against the total demand of Rs.90.52 crore. Apart from this, 4,755 dealers with demands ranging from Rs 1-5 lakh would get 100% relief in interest and penalty in the assessments conducted for the year 2013-14.
Likewise, arrears of demand are pending for various reasons in 7,004 cases pertaining to the financial years from 2005-06 to 2012-13. With the implementation of this OTS, dealers in 4,037 of these cases would get 90% tax relief and 100% relief in interest and penalty.