The Telangana Commercial Taxes Department has issued an introduction of the “One Time Settlement Scheme” to settle disputed tax under the legacy Acts such as the Andhra Pradesh General Sales Tax Act, 1957, the Telangana Value Added Tax Act, 2005 , the Central Sales Tax Act, 1956 and the Telangana Entry of the Goods into Local Areas Act, 2001.
In the letter issued on Monday, the Commissioner of Commercial Taxes, Telangana, Hyderabad has informed that there is an arrear amount of around Rs. 3000 Cr pending in various stages of litigation and that this amount is not readily recoverable.
Other States including Maharashtra, Karnataka, Kerala, Bihar and West Bengal have introduced One Time Settlement scheme for disputed taxes in a similar context. Therefore, the Commissioner of Commercial Taxes, Telangana Hyderabad has proposed a One-Time Settlement Scheme of Tax Arrears to release this locked up revenue and requested the Government for necessary orders in the matter.
As per the order, the following rates are applicable for disputed tax,
i.Andhra Pradesh General Sales Tax – 40% of balance tax will be collected from dealer and remaining 60% of demand will be waived off.
ii.Value Added Tax & Central Sales Tax – 50% of balance tax will be collected from dealer and remaining 50% of demand will be waived off.
iii.Entry tax on Motor Vehicle & Goods – 60% of balance tax will be collected from dealer and remaining 40% of demand will be waived off.
As per the order, for the amounts payable higher than Rs.25 lakhs, installment facility will be provided without interest up-to 4 equal monthly installments. Bank interest rates will be applied for those seeking more installments.
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