Tax dues: State moots one time settlement

Rs.2,350 cr. involved in litigations pending in tribunal and various courts

May 03, 2015 12:00 am | Updated 05:55 am IST - HYDERABAD:

State government is contemplating One Time Settlement scheme to recover over Rs.2,000 crore pending commercial tax revenue dues locked up in various litigations.

Finance Minister Yanamala Ramakrishnudu, who recently held a review meeting in Vijayawada to review the division-wise revenue collections and shore up tax collection by plugging loopholes in the system, sought details about the amount locked up in litigation.

Sources said Rs.2,350 crore is involved in litigations pending in tribunal and various courts as on March 31, 2015 and of it Rs.548 crore could be recovered by a determined follow up.

For the rest of the amount, government is in favour of extending OTS as it would give relief to the petitioner on his outstanding amount and the government would get revenue straight away without waiting indefinitely for the disposal of cases in the courts. The OTS may yield at least Rs.1,000 crore, sources added.

The Minister has directed the Commercial Tax Commissioner to send proposals suggesting quantum of relief under the OTS scheme, sources said.

The government is also looking at improving tax payment compliance by plugging loopholes through bringing statutory amendments to the AP Value Added Tax Act to improve compliance of monthly filing of returns from the present 92 per cent to 100 per cent.

The department is also preparing a comprehensive format for detection of tax evasion per audit.

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