No provision of instalments for payment of principal tax
Step to help in smooth implementation of GST
JAMMU, Feb 26: Providing much-needed relief to large number of traders and industrialists, the Government of Union Territory of Jammu and Kashmir has extended the timeline by four months for payment of arrears under the Amnesty Scheme announced in the year 2018.
In pursuance to the Cabinet Decision Nos. 219/13/2017 dated December 21, 2017 and 1/1/2018 dated January 9, 2018 and Budget Announcement 2018-19, the Finance Department vide Government Order No.39- dated February 5, 2018 had accorded sanction to grant of amnesty for settlement of unresolved issues in the old tax regime for smooth implementation of Goods and Services Tax (GST).
Under the Amnesty Scheme, sanction was accorded to remission of penalty and the interest on arrears of tax under the provisions of J&K Value Added Tax, 2005 (now repealed); settlement of cases of industrial units where demands have been created by disallowing remission and remission of penalty and the interest on arrears of tax in respect of Telecom Operators under the provisions of Jammu and Kashmir General Sales Tax Act, 1962.
At that time it was announced that there shall be 100% remission of penalty and interest on arrears of tax for dealers under the provisions of J&K VAT, 2005 (now repealed), who pay the admitted, assessed and re-assessed principal tax up to the accounting year 2016-17 in three equal instalments. It was also mentioned that the scheme shall also include period from April 1, 2017 to July 7, 2017. The due dates for the instalments were March 31, 2018, January 31, 2019 and January 31, 2020.
In the recent past, various trade bodies submitted a number of representations to the Government requesting for extension of time-line for payment of arrears on various grounds particularly complete internet blockade for quite long time and their inability to settle accounts with their counterparts in Kashmir valley.
Now, much to the relief of the traders and industrialists the Government has extended the timeline for payment of arrears so as to ensure smooth implementation of GST.
“Subject to the procedure for availing the Amnesty Scheme, the dealers, who could not avail the benefit can also apply under the scheme provided they pay the admitted, assessed and re-assessed principal tax by or before June 30, 2020”, read the order issued by Dr Arun Kumar Mehta, Financial Commissioner, Finance Department.
The benefit of the Amnesty Scheme can also be availed by all such dealers, who had applied under the scheme but had either failed to deposit the payment in time or have missed any of the instalments. However, this time there is no provision of instalments.
As far as remission of interest and penalty under the provisions of J&K VAT, 2005 (now repealed) is concerned, the dealers who have demands on account of admitted/assessed tax for any accounting year up to 2016-17 and for the period from April 1, 2017 to July 7, 2017 shall deposit the balance payable on account of principal tax, read Clause 2 Sub-Clause I as per the amendments carried out in the order of February 2018 wherein there was provision for payment of principal tax in three equal instalments.
Similarly provision of payment of 1/3rd of the principal tax has also been omitted from Clause 2 Sub-Clause II, which now reads: “The dealers who are yet to be assessed as per the provisions of J&K VAT Act, 2005 shall however be eligible for availing the benefit of the scheme subject to the condition that they shall file the returns, revised returns, trading accounts along with sale/purchase statement and the declaration supported by the proof of payment of admitted tax”.
Similarly, after amendment the Clause 4 of the Scheme reads: “Default in payment within the prescribed time period—June 30, 2020 shall entail outright disqualification from the scheme without any intimation”.
In respect of the cases where the dealers have challenged the orders passed under any section of the J&K Value Added Tax, 2005 (now repealed) before any Appellate Authority or court, the benefit of the scheme will be available subject to the condition that concerned dealer files an affidavit before the jurisdictional authority averring that he has filed an application for withdrawal of such case before any Appellate Authority along with proof of payment of principal tax failing which the dealer shall be disqualified from the scheme.
Similar amendments have also been carried out as far as settlement of cases of industrial units where demands have been created by disallowing remission.