Punjab Nedws/VDS scheme to enable dealers to rectify their mistakes in tax returns

Chandigarh, November 30, 2013: In order to provide opportunity to those dealers who have defaulted in paying VAT, bonafide or otherwise while submitting their returns and paying the tax but were apprehensive about the stringent penal provisions and undue harassment, the cabinet gave a go ahead to Excise & Taxation department’s ‘Voluntary Disclosure Scheme’.  This scheme open until December 31, 2013 would offer an opportunity to dealers to rectify their mistakes and cover those taxable persons who have claimed the Input Tax Credit, but the tax has not actually been paid into the state treasury on the goods so purchase.  This scheme will also cover the taxable persons who have claimed concessional rate of tax claiming branch transfer/interstate trade, but actually the goods were not sent outside the state, the taxable persons who have submitted statutory forms for claiming concessional rate, but the same are not proper and genuine and the taxable persons who have claimed zero rated sales on account of exports but either the exports have not taken place or they are over-invoiced.   The dealer will undertake to deposit the correct/actual tax due along with 1.5% interest from the day the tax was due.  The designated officer will calculate the tax due and inform the applicant within 30 days.  These dealers will pay 25% of the tax due plus interest within a month.  The dealer may pay the balance 75% amount also within this period of 30 days.  If a dealer has any cash flow problems, he may deposit the balance amount in three quarterly installments bearing interest of 1% per month.  But the dealers under investigations or whose premises had been already inspected will not be covered under this scheme.
A decision to this effect was taken here at a meeting of the Cabinet chaired by Punjab Chief Minister Parkash Singh Badal this afternoon.