TELANGANA STATE ONE TIME SETTLEMENT SCHEME
May 10, 2022
INTRODUCTION
The Revenue Department of Government Of Telangana has rolled out the “Telangana State One Time Settlement scheme 2022” vide Letter bearing number G. O. Ms. No. 45 dated: 09-05-2022.
As reported by the Commissioner of Commercial Taxes, the arrear amount pending in various stages of litigation is around Rs. 3000 Cr which is not readily recoverable.
On similar lines to the one time settlement scheme rolled out by the governments of Maharashtra, Karnataka, Kerala, Bihar and West Bengal, Telangana rolls out the scheme with an objective to release this locked up Revenue from Tax Arrears.
PROVISIONS OF THE SCHEME
- The provisions of the scheme shall apply to all registered and unregistered dealers under 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.
- For settlement of disputes under this Scheme, each year of assessment shall be a distinct unit.
- 100% of undisputed tax will be payable.
- The scheme sets out the following rates for disputed tax:
| Andhra Pradesh General Sales Tax | 40% of balance tax to be collected 60% of demand to be waived off. |
| Value Added Tax & Central Sales Tax | 50% of balance tax to be collected 50% of demand to be waived off. |
| Entry tax on Motor Vehicle & Goods | 60% of balance tax to be collected 40% of demand to be waived off. |
- Interest and penalty to be waived for persons availing the scheme.
- No refunds to be given under the scheme
- Scheme provides for instalment facility without interest (up-to 4 equal monthly instalments) in case the amounts payable higher than Rs.25 lakhs. In case applicant seeks more instalments, Bank interest rates will be applied.
- Notwithstanding anything contained in any provisions of the respective Acts, the appeal pending before the appellate authority or the Tribunal or the Court in respect of any order or notice, shall be withdrawn fully and un-conditionally by the applicant.
- Timeframe for availing the scheme:
| 16.05.2022 to 30.06.2022 | – Application to avail OTS |
| 01.07.2022 to 15.07.2022 | – Scrutiny of application for confirming the arrear & Intimation |
| 16.07.2022 to 15.08.2022 | – Submission of settlement letter and payment of agreed amount |
PROCEDURE FOR APPLYING FOR THE SCHEME
- Application to be made online, except in cases where dealer is no more in business where offline application to be made to Jurisdictional Circle/STU.
- Scrutiny of application by committee consisting of AC(ST) of Circle, DC(ST) and JC(ST) of the Division which shall send a confirmation letter by accepting/ rejecting/ modifying the proposal.
- Payment to be made on receipt of confirmation letter and submission of payment details with relevant documents and application for withdrawal of appeal (if applicable).
- Once the total tax payable is realised and the case is withdrawn, issuance of proceedings for settlement of balance tax, penalty and/or interest.