Punjab OTS slanted: Business community

Ludhiana: Within just a fortnight of its grand launch, the Punjab government's one-time settlement (OTS) scheme has run into rough weather, as several businessmen have questioned its limited scope.
The plan waives 90% tax and 100% penalties and interest of those whose old VAT cases of the year 2013-14 were reopened for assessment and framed up to December 31, 2020.The businessmen say this will benefit only those whose tax liability is up to Rs 1 lakh, and those beyond this limit will get no relief. They want the government to end this disparity and treat every taxpayer equally to take the benefits of this scheme to maximum people.
Coming forth with the grievances of his fraternity, Punjab Pradesh Beopar Mandal state general secretary (PPBM) Sunil Mehra said: “The state government brags about its OTS for tax assessment but the reality is in the details, which restrict waivers of tax, interest, and penalty to a certain liability bracket. Those who pay more than Rs 1 lakh in tax get only interest and penalty waivers and no tax rebate. So it is obvious that only a tiny segment of assessees with a very small tax liability will gain instead of the majority."
Saban Bazar Traders Association president Kamal Gupta said: “The OTS launched by the state government is not much useful to us, as almost everyone in business has tax liability of more than Rs 1 lakh. This is the first OTS that differentiates between the assessees based on their tax liability. The previous government, too, introduced a similar scheme but that didn't discriminate against people on the basis of turnover. Everyone got the same benefits. The state government should realise the ground reality and make necessary changes to the OTS, as still there is time left in its official rollout, which is scheduled for February 1.”
Business Bachao Morcha president Gurdeep Singh Gosha said: “The OTS of the Congress government is a sham, as its real motive is not to benefit the businessmen but to just earn publicity by claiming that it gave benefit worth hundreds of crores to the state's businessmen. If the government is serious indeed about helping the business community, then why doesn't it open the scheme to all businessmen, regardless of their turnover?”
On January 11, the Punjab cabinet approved this one-time settlement scheme for the traders to clear their tax arrears. The scheme will cost the state exchequer Rs 121.06 crore, according to a government statement, and all dealers with assessments framed up to December 31, 2020, can apply for benefit till April 30.
The dealer can even submit additional statutory forms like C-forms which were not produced at the time of assessment, with the application form and will have to make the self-assessment and submit the proof of payment net tax payable as the result of settlement. The concerned Ward in-charge would issue an order of settlement which would not be reopened in any proceeding by way of review or revision.
Trade associations had requested the state government to introduce an OTS for the clearance and settlement of arrears under the Punjab Value Added tax Act, 2005, and Central Sales tax Act, 1956, the government's statement had said. Small dealers especially, have suffered a lot in the Covid-19 lockdown and subsequent decline in the business activity. Various trade associations had raised a concern that they were facing difficulties in procuring statutory forms prescribed under the Central Sales Tax Act, 1956, for availing themselves of concessional or zero rate of tax on the inter-state transactions.