Industry body FTCCI lauds OTS
Hyderabad: Industry body FTCCI said the one-time settlement scheme (OTS) announced by the Telangana government will help release manpower engaged in legacy issues and allow more time for GST related issues. It also allows closure to litigations and at the same time effect early recoveries of tax dues. The State government on Monday announced ‘one-time […]
Hyderabad: Industry body FTCCI said the one-time settlement scheme (OTS) announced by the Telangana government will help release manpower engaged in legacy issues and allow more time for GST related issues. It also allows closure to litigations and at the same time effect early recoveries of tax dues.
The State government on Monday announced ‘one-time settlement scheme’ (OTS) to recover over Rs 3,000 crore long-pending arrears pertaining to commercial taxes. Telangana is the latest to issue orders for OTS. Maharashtra, Karnataka, Kerala, Bihar and West Bengal have already introduced OTS to recover disputed taxes.
Under this scheme, with regard to general sales tax arrears, 40 per cent of the balance tax will be collected from dealers and the remaining 60 per cent will be waived.
For VAT and Central sales tax arrears, 50 per cent of balance tax will be be waived. For entry tax on motor vehicles and goods, 40 per cent of balance will be waived. Interest and penalty are also waived for the dealers availing the OTS.
FTCCI President Bhasker Reddy said the State government introduced OTS under legacy Acts such as Andhra Pradesh General Sales Tax Act , VAT Act, Central Sales Tax Act and Telangana Entry of the Goods into local areas Act. “We are glad that the long pending demand to address the tax dispute has been addressed by Telangana,” he said.
The industry has been waiting for an early resolution and OTS will provide required relief to dealers from legacy issues, he said, adding that the scheme also allowed payment in four equal installments without interest if the payment of tax dues involved exceeds Rs 25 lakh. Bank interest rates will be applied for those seeking more installments.
The dealers should apply for the OTS through an online application. Dealers no longer in business can apply offline in their respective jurisdictional circles of the commercial taxes department. Applications will be accepted online from May 16 to 30. Scrutiny, confirmation of arrears and intimation will be done from July 1 to 15. Submission of settlement letter by tax payer and payment of agreed amount will go on from July 16 to August 15.
