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Govt orders 100 pc remission on penalty, interest on VAT, Passenger Tax arrears

Nishikant Khajuria
JAMMU, Feb 3: Preparing stage clear for Jammu and Kashmir entering into GST regime, the State Finance Department has facilitated remission of 100 percent of the penalty and the interest on arrears of the VAT and Passenger Tax in six equal monthly installments from this month.
Formal notifications in this regard, which come into force from today, have been issued by the State Finance Department.
According to the notification on VAT, the benefit of remission under the scheme, can be availed by all the dealers and industrial units, registered under the provisions of J&K Value Added Tax 2005, who pay the arrears of VAT, assessed, .re-assessed up to the accounting year 2015-16.
Such dealers or industrial units shall simply file a declaration as may be prescribed by the Commissioner for the particular years, along with .the proof of payment of 1/6th of the assessed tax arrears.
Default in payment of first installment shall entail outright disqualification from the scheme. However default in payment of any subsequent monthly installment shall make the dealer liable for disqualification only if he is not able to furnish proof of the payment of the missed installment alongwith penalty equivalent to 5 percent of the unpaid installment, which shall become due. In case of any further default, the dealer shall be liable to pay the entire amount of arrears along with the interest and penalty. All the installment shall have to be deposited within six months from February 3, 2017, the date of coming into force of the notification in this regard.
In respect of the cases, where the dealers have challenged the orders passed under any section of the J&K Value Added Tax Act 2005, before any Appellate Authority or court, the benefit of scheme shall be available subject to the condition that the concerned dealer files an application before the Competent Authority, along with an affidavit that he has filed an application for withdrawal of such case and that there are no proceedings pending before Appellate Forum or courts as the case may be.
These provisions shall also apply to arrears of tax or interest or penalty under the Central Sales Tax Act 1965 w.e.f 2005-06 in all cases where the procedure is regulated under section 9(2) of CST Act, 1956, read with J&K VAT Act 2005.
All the concerned Assessing Authorities having jurisdiction shall be competent to pass order for waiver of such interest/ penalty, subject, however to the condition that no proceedings are pending in this regard before any forum or court.
The amount, if any already paid towards penalty or interest imposed under relevant sections, before the issuance of this notification, shall neither be refunded nor adjusted in any manner.
The State Government has also issued notification for remission of 100 percent interest and penalty on Passenger Tax, in respect of such defaulting transporters, who pay Principal Tax accrued upto March 31, 2016, in six equal monthly installments, with the first installment to be paid within thirty days of the publication of this notification, dated February 1, 2017.
The scheme of remission of interest and penalty shall also apply to such transporters who have already deposited Principal Tax for the referred period in full or in part. However, if any transporter fails to pay one single installment within the stipulated period for reasons beyond his control, he shall deposit the same along with the installment due in the following months. In case of any further default, the entire amount of arrears along with the interest and penalty, shall become recoverable as if the scheme of amnesty so authorized did not exist.
The passenger transport operators, desirous of availing of the scheme, shall make application to the Passenger Tax Officer of the concerned division in the format prescribed by the Commissioner Commercial Taxes, J&K. Such applications should reach to the concerned division within 30 days from the issuance of this notification, along with proof of payment of 1/6th of the total amount of principal tax.
The Government has also issued formal notification for exemption of Passenger Tax of the vehicles, which remained off the road due to law and order situation in the State from Ist July 2016 to December 31, 2016, subject to the condition that owner of the vehicle shall furnish an affidavit to this effect.
Besides, the Finance Department has issued necessary notifications for omitting some provisions of J&K Entry Tax on Goods Act 2000, partial modifications and amendments in some SROs concerning taxes, as per budget announcements of the State Government.

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