TS announces OTS to settle tax disputes, recover Rs. 3000 Cr arrears

Hyderabad: Commercial Taxes department announced a one-time settlement (OTS) scheme to settle tax disputes under Andhra Pradesh General Sales Tax Act (1957), 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 scheme had been introduced as arrears of around Rs 3,000 crore were pending in various stages of litigation and the amount was not readily recoverable. The development follows a request from the Commercial Taxes Commissioner for the introduction of a one-time settlement scheme of tax arrears to realize the locked-up revenue.

Similar one-time settlement schemes had been executed in Maharashtra, Karnataka, Kerala, Bihar and West Bengal in the past for realising the disputed taxes, Chief Secretary Somesh Kumar said in the order.

According to him, the provisions under the OTS would apply to registered and unregistered dealers under the AP General Sales Tax Act, 1957, the Telangana Value Added Tax, 2005, the Central Sales Tax Act 1956, and the Telangana Entry of the Goods in Local Areas Act 2001.

The OTS would be executed through online mode. The applications would be scrutinized by a three-member committee and the committee should send a confirmation letter to the applicant by accepting/rejecting/modifying the proposal. On receipt of the confirmation letter, the applicant should make the payment and submit the details along with necessary documents and the application for withdrawal of the appeal.