HYDERABAD: The state government on Monday announced a ‘one-off liquidation scheme’ (OTS) to collect over Rs 3,000 crore of long-outstanding trade tax arrears.
Chief Secretary Somesh Kumar issued corresponding orders. The orders said that the state governments of Maharashtra, Karnataka, Kerala, Bihar and West Bengal had introduced OTS to collect disputed taxes and the Telangana government also decided to follow suit.
Regarding general sales tax arrears, 40 percent of the remaining tax is collected from merchants and the remaining 60 percent is waived. For sales tax and central sales tax arrears, 50% of the remaining tax is collected and the remaining 50% is waived. For entry tax on motor vehicles and goods, 60 percent of the remaining tax will be collected and the remaining 40 percent will be waived, the order said. Interest and penalties are waived for traders who avail themselves of the above scheme. No refunds will be given under this program.
The OTS of the tax arrears is carried out via an online module. The dealer applies for the scheme via an online application. If a trader is no longer in business, he can submit the application offline to the responsible districts of the trade tax office.
Amounts payable over Rs 25,000 will be granted equal installments without interest for up to four months. For those who want more installments, bank interest rates apply.
Applications will be accepted online May 16-30. Backlog confirmation applications will be reviewed and reported from July 1-15. The taxpayer is scheduled to submit the settlement letter and pay the agreed amount between July 16 and August 15.