OTS scheme for traders to clear dues approved

Ruchika M Khanna

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Chandigarh, November 6

Around 40,000 traders have been let off the hook by the Punjab Government after the Council of Ministers gave approval to waive their pending dues, including Value Added Tax, Central Sales Tax, Punjab Infrastructure Development Tax and Punjab General Sales Tax to the tune of Rs 528.38 crore.

2,657 big defaulters

• 39,787 get 100% waiver
• 19,361 get a 50% waiver on outstanding dues
• 2,657 big defaulters excluded from the OTS scheme

However, the government hopes to recover Rs 24,889.06 crore from those defaulters whose outstanding dues are over Rs 1 lakh each. As many as 39,787 traders have been in the defaulters’ list for years, some for as long as 18 years.

The new one-time settlement (OTS) scheme will ensure that their dues including tax, interest and penalty are waived. The outstanding total demand against all these traders was less than Rs 1 lakh each. The cut-off date for availing the OTS is March 31, 2023.

However, 22,018 defaulters will have to clear their dues. After getting these defaulters under the ambit of the OTS scheme, the government hopes to recover Rs 2,778.89 crore of the total outstanding demand of Rs 5,557.78 crore.

Also, 2657 defaulters whose outstanding is over Rs 1 crore each will have to pay complete dues. These also include the Food Corporation of India and state food procurement agencies. They have not been included in the OTS and the total money to be collected from them is to the tune of Rs 22,110. 17 crore.