The Haryana cabinet here on Monday approved the state’s One-Time Settlement Scheme for the recovery of outstanding dues under pre-GST tax laws.
The scheme aims to reduce legacy litigations and expedite the recovery of outstanding dues under the pre-GST tax laws.
The scheme would commence on June 1 and would remain in force for 120 days. Taxpayers can submit applications online during this period on the portal of the Excise and Taxation Department to avail the benefits of the scheme, an official statement said.
The scheme will be applicable to the following Acts The Haryana Value Added Tax Act, 2003 , the Central Sales Tax Act, 1956 , the Haryana Tax on Luxuries Act, 2007 , the Haryana Entertainment Duty Act, 1955 , the Haryana General Sales Tax Act, 1973 , the Haryana Local Area Development Tax Act, 2000 and the Haryana Tax on Entry of Goods in to Local Areas Act, 2008 .
For the assessee whose tax dues are up to ₹1 lakh in a particular assessment year under any of the relevant Acts, the entire due amount including interest and penalty for that particular assessment year is waived under the scheme and he need not apply under the scheme to avail this benefit with respect to that assessment year under the relevant Act.
A special waiver of tax has been provided for arrears under the Haryana General Sales Tax Act, 1973 , which has older arrears of the pre-VAT regime.
Tax waiver under the HGST Act, 1973 is 100 per cent up to ₹1 lakh and 70 per cent above ₹1 lakh.
In addition to the tax waiver, a 100 per cent waiver on interest and penalty will also be granted, the statement said.
Waiver of tax under the other six Acts including VAT/ CST would be 100 per cent up to ₹1 lakh, 60 per cent above ₹1 lakh to ₹10 lakh, 50 per cent above ₹10 lakh to ₹1 crore and 40 per cent above ₹1 crore to ₹10 crore.
It will be 35 per cent above ₹10 crore to ₹30 crore, 30 per cent above ₹30 crore to ₹60 crore and the tax waiver will be nil above ₹60 crore.
Taxpayers will be entitled to waivers separately for each of the slabs, thus, benefiting the taxpayers with a tax waiver provided in each preceding slab up to the relevant slab.
Further, the taxpayer gets better flexibility as he can opt for the scheme for the selected years.
A new provision of document-linked waiver has been added in the OTS scheme which enables taxpayers to submit available statutory documents and forms under relevant Acts, and based on the successful verification of submitted documents/ forms, tax demand is further settled.
