Home » Indian Cities News » Samadhan’s success hinges on waiver, penalty

Samadhan’s success hinges on waiver, penalty

Factors such as waiver of some portion of tax, interest and penalty will determine the success of the proposed scheme by the State government to enable taxpayers settle their dues under the previous Value Added Tax regime, according to experts.

In his budget speech last week, Finance Minister Palanivel Thiaga Rajan had indicated that Samadhan Scheme will be launched to settle the pending dues of ₹28,000 crore under Tamil Nadu Value Added Tax and other legacy legislations.

The details of the scheme are yet to be announced and its success will depend on the quantum of relief. Many States like Kerala and Maharashtra have announced such schemes, G. Natarajan, an advocate, Partner in Swamy Associates, said.

Central scheme

Earlier, the Centre had introduced Vivad Se Vishwas scheme covering Central Excise and Service Tax. According to data provided by Union Minister of State for Finance Pankaj Chaudhary in Lok Sabha, disputes over ₹99,756 crore tax amount had been settled under the Vivad Se Vishwas scheme and the government realised ₹53,684 crore receipts.

‘’The State can look at the Centre’s scheme which was a success and try to emulate the same. Substantial waiver of the tax component and total waiver of penalty would be some of key aspects for the scheme to be effective,” Vaitheeswaran, a Chennai-based advocate and tax consultant, said.

Source link


Check Also

Withdraw weekend closure of temples: devotees

Devotees of Swaminatha Swamy Temple and local traders on Thusrday staged a demonstration at Swamimalai ...