Chandigarh : The one-time settlement (OTS) scheme rolled out by the Punjab government for settling value-added tax (VAT) arrears has received a good response.
The OTS scheme 2023-24 launched by the state government five months ago for settlement of outstanding tax dues of the pre-goods and services tax (pre-GST) period has helped the state government collect ₹62.29 crore from 44,503 traders who had submitted applications till March 31. Of these, 40,463 traders had tax arrears up to ₹1 lakh and another 4,040 traders were in the ₹100,001- ₹1 crore tax slab, according to department sources.
Those with arrears up to ₹1 lakh as on March 31, 2023, have been provided waiver of 100% tax, penalty and interest, whereas 50% waiver of tax and 100% waiver of penalty and interest has been given to those with tax arrears between ₹1,00,001 and ₹1 crore.
The OTS scheme, whose objectives included reduction of compliance burden of legacy cases, was initially applicable from November 15, 2023, to March 15, 2024, and taxpayers, whose assessments have been framed till March 31, 2023, with amount of total demand (tax, penalty and interest) up to ₹1 crore were eligible to apply for settlement. The scheme was extended till June 30, 2024, by the state cabinet last month.
When contacted, taxation minister Harpal Singh Cheema said this has been the most successful one-time settlement scheme introduced in the state for tax arrears of pre-GST era. The OTS scheme 2023-24 was approved by the state cabinet on November 6 to settle the tax arrears of more than 60,000 traders. The scheme provided that if any trader produces the statutory form, his tax dues will be adjusted after check the eligibility to avail the benefit.
According to official data, two one-time settlement schemes rolled out during the previous government had collected ₹8.21 crore and ₹4.94 crore, respectively.
{{/usCountry}}According to official data, two one-time settlement schemes rolled out during the previous government had collected ₹8.21 crore and ₹4.94 crore, respectively.
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