The Telangana government has introduced the Telangana State One-Time Settlement Scheme 2022 to realise the locked up revenue.
As per the Commissioner of Commercial Taxes, Telangana, Hyderabad, there is an arrear amount of around Rs. 3000 crores pending in various stages of litigation and that the amount is not readily recoverable.
The state government has introduced a One-Time Settlement Scheme to settle disputed taxes under 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 Goods into Local Areas Act, 2001.
The scheme shall be applicable to all registered and unregistered dealers under 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 Goods into Local Areas Act, 2001.
For settlement of disputes under the Scheme, each year of assessment shall be a distinct unit and 100% of the undisputed tax will be payable.
Under the Andhra Pradesh General Sales Tax, 40% of the balance tax will be collected from dealers and the remaining 60% of demand will be waived off.
Under Value Added Tax and Central Sales Tax, 50% of the balance tax will be collected from the dealer and the remaining 50% of demand will be waived off.
Under the entry tax on motor vehicles and goods, 60% of the balance tax will be collected from the dealer and the remaining 40% of demand will be waived off.
The One-Time Settlement of Tax Arrears will be executed through an online module.
The dealer must apply for the scheme via an online form.Where the dealer is no longer in business, he can apply offline in the respective jurisdictional circle/STU.
A three-member committee comprised of AC (ST) of Circle, DC (ST), and JC (ST) of the Division will review the application.The committee shall send a confirmation letter to the applicant by accepting or rejecting or modifying the proposal of the applicant.
On receipt of the confirmation letter, the applicant will make the payment and submit the payment details along with the necessary documents and the application for withdrawal of appeal (wherever applicable).
The proceedings for settlement of balance tax, penalty and/or interest will be issued after realisation of the total tax payable and disposal of the case as withdrawn by the respective legal forum.
For the amounts payable higher than Rs. 25 lakhs, an instalment facility will be provided without interest for up to 4 equal monthly instalments. Bank interest rates will be applied for those seeking more instalments.
The state governments of Maharashtra, Karnataka, Kerala, Bihar and West Bengal have also introduced one-time settlement schemes for disputed taxes.