Investors await notification of rules

Ambika Sharma

Tribune News Service

Solan, February 13

Investors are keenly awaiting the notification of rules for the Himachal Pradesh (Legacy Cases Resolution) Scheme, notified by the Department of Excise and Taxation in January, as it is slated to provide a major relief to around 3 lakh pending cases of tax assessment.

The scheme will add a sizeable revenue to the exchequer as there is a pendency of arrears of around Rs 3,500 crore due to delay in assessment. It will address the settlement of legacy cases under the GST, VAT, CST and other taxation laws subsumed under the GST.

Sanjay Khurana, president, Baddi Barotiwala Nalagarh Industries Association, said the notification would be a major relief for the investors whose tax assessment had been stuck for year.

“The rules framed under the scheme have been sent for legal opinion and, once cleared, these will be notified. It is expected to make available a revenue of Rs 620 crore to Rs 670 crore, if all defaulters apply under it. It will also make available considerable manpower, which was engaged in legacy issues, and will help improve compliances under the GST,” said Principal Secretary, Department of Excise and Taxation, Sanjay Kundu.

The scheme will be applicable for both settlement of pending arrears as well as any arrear that might accrue on account of disposal of pending assessments under taxation laws subsumed under the GST.

The scheme, introduced by the government, has a provision of settlement fee and a declaration is required to pay the fee for settling a legacy issue. The last date to file the declaration under the settlement scheme will be April 30.

Officials have been trying to settle pending VAT cases ever since the GST was introduced in July 2017. A revenue worth Rs 1,047 crore and Rs 1,052 crore had been generated in 2018-19 and 2019-20 till January.

In Solan district, the maximum VAT revenue of Rs 355.6 crore and Rs 397.4 crore was generated in 2018-19 and 2019-20 till January among the industrial clusters, while in Baddi excise district, a revenue worth Rs 88.18 crore and Rs 79.1 crore was generated. In Sirmaur district, Rs 69.25 crore and Rs 61.38 crore was collected as VAT in 2018-19 and 2019-20 while in Kangra district, the figures stood at Rs 80.49 crore and Rs 73.37 crore.

States like Gujarat, Kerala, Karnataka, Maharashtra, MP, Haryana and Rajasthan have already introduced schemes to settle legacy issues. Maharashtra had provided 50 per cent waiver in tax, 90 per cent in penalty and 95 per cent in interest. The Centre has provided a waiver in tax dues ranging from 40 per cent to 70 per cent apart from complete waiver in penalty and interest.

Relief in 3 lakh tax cases

• The scheme is slated to provide a major relief to around 3 lakh pending cases of tax assessment.
• It will add a sizeable revenue to the exchequer as there is a pendency of arrears of around Rs3,500 crore due to a delay in assessment.
• The scheme has a provision of settlement fee and a declaration is required to pay the fee for settling a legacy issue. 
• The last date to file the declaration under the settlement scheme will be April 30. 

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