Chandigarh: OTS for old VAT cases in works

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Chandigarh, February 6

Administration is in the process of finalising a one-time settlement (OTS) scheme for pending VAT cases.

The city traders have been seeking relief under the scheme for a long time. Sources said the Excise and Taxation Department had prepared a proposal to settle old VAT cases and sent it to the higher authorities for approval. The decision will be implemented once the UT Administrator gives his assent to the proposal.

10K traders of city to benefit

Charanjiv Singh, president, Chandigarh Beopar Mandal (CBM), said there were from 8,000 to 10,000 traders in the city facing pending VAT cases. Besides providing relief to traders, the UT Administration will also generate revenue by settling these cases.

Charanjiv Singh, president, Chandigarh Beopar Mandal (CBM), said there were from 8,000 to 10,000 traders in the city facing pending VAT cases. Besides providing relief to traders, the Administration will also generate revenue by settling these cases.

He said they had been demanding the settlement of old cases on the lines of other states. The Punjab and Himachal Pradesh governments had come up with the one-time settlement (OTS) scheme to settle pending VAT assessment cases of traders in the past.

Charanjiv said they were being penalised for cases as old as 6-7 years although other states were bringing in amnesty schemes to give relief to traders. The sources say the Administration will set a time limit for the settlement of old cases under the proposed OTS scheme.

Besides traders and industrialists, there are many contractors who are facing pending VAT cases. Under the OTS scheme, the Administration could allow exemption in interest and tax dues.

The sources said the department had also studied the policy adopted in Punjab and other states in this regard. The CBM has demanded relief on the Punjab pattern.

Charanjiv said VAT assessment cases prior to 2015-16 were not being rectified and assessees had to deposit 25% of the dues while filing an appeal with the Excise and Taxation Department.