Punjab Government has introduced a one time settlement scheme in respect of outstanding tax dues under various state tax laws. This scheme was notified on November 9, 2023 and will be applicable for settlement of dues where assessments have been completed till March 31, 2023.
Objectives
The key objectives of introducing this one time opportunity for settlement of disputed tax dues are:
i) To provide an opportunity for settlement of outstanding tax dues
ii) To ensure compliance and transparency
iii) To recover pending dues expeditiously
Applicability
The “Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2023” is applicable for settlement of dues under the following Acts:
i) Punjab Value Added Tax Act, 2005
ii) Central Sales Tax Act, 1956
iii) Punjab Infrastructure (Development and Regulation) Act, 2002
iv) Punjab Goods and Services Tax Act, 2017
It covers cases where assessments have been completed till March 31, 2023 and the total demand amount is up to Rs 1 crore.
Key Provisions
Here are some of the important provisions of the Punjab One Time Settlement Scheme 2023:
Timeline
i) Effective from: November 15, 2023
ii) Last date for application: March 15, 2024
Settlement Process
i) Applications to be made in FORM OTS-1 along with self-assessed payment
ii) Acknowledgement in FORM OTS-2 to be issued
iii) Settlement order in FORM OTS-4 if satisfied or rejection order in FORM OTS-5 if not satisfied
Eligibility
i) Applicable for all assessees with assessments completed till March 31, 2023
ii) Assessees under litigation can also apply subject to withdrawal of appeals
Settlement Terms
i) Pre-fixed settlement amount basis slab rates given in scheme
ii) Mandatory withdrawal of appeals
iii) Separate application required for each assessment year
Key Conditions
i) Nullification if appeal not withdrawn after settlement
ii) No refund of any deposits made prior to scheme
iii) Settlement can be revoked in case of fraud or misrepresentation
The scheme aims to provide an easy one-time settlement opportunity for assessees to close pending disputes and litigations. This will help the revenue department recover substantial dues expeditiously while reducing litigation burden.
Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2023: Notification dated 10/11/2023