Telangana Commercial Taxes Department introduces scheme to settle disputes

Telangana Commercial Taxes Department introduces scheme to settle disputes

An arrear amount of Rs.3000 crores lies pending in litigation

The Telangana Commercial Taxes Department has introduced a 'One Time Settlement Scheme' to settle disputed taxes under the legacy Acts. These include 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 the Goods into Local Areas Act, 2001.

The Commissioner of Commercial Taxes, Telangana, Hyderabad informed about an arrear amount of around Rs.3000 crores, which was pending in various stages of litigation. He said that the amount was readily recoverable.

Meanwhile, the other states, including Maharashtra, Karnataka, Kerala, Bihar, and West Bengal have also introduced the 'One Time Settlement Scheme' in a similar context. The Commissioner, thus, requested the government for necessary orders to release the locked-up revenue.

According to the order, the rates applicable for disputed tax would be -

1. Andhra Pradesh General Sales Tax – 40 percent of the balance tax would be collected from the dealers and the remaining 60 percent would be waived off.

2. Value Added Tax & Central Sales Tax – 50 percent of the balance tax would be collected and the remaining 50 would be waived off.

3. Entry Tax on Motor Vehicle & Goods – 60 percent of the balance tax would be collected and the remaining 40 percent would be waived off.

Importantly, for the amounts payable higher than Rs.25 lakhs, an installment facility would be provided without interest for up to four equal monthly installments. For those seeking more installments, the bank interest rates would be applicable.