Amnesty Scheme for VAT dealers in Kerala: 70% Penalty & Interest can be waived

Kerala Finance Minister T.M. Thomas Isaac, in his budget, has announced an amnesty scheme for redressing the tax disputes of Value Added Tax dealers.

During the budget speech for 2017-18, Dr. Isaac said if the tax arrears of the assessment years from 2005-06 to 2010-11 was fully remitted, the interest thereon and 70% of the penalty and interest on penalty would be waived.

As per the scheme, all arrears of a year could be settled together by the dealer. A trader who avails himself of the scheme will have to withdraw all cases, revision and appeals pending before any forum. Tax arrears and interest would be calculated on the date of submitting an application. Arrears under the Central Sates Tax Act could also be settled. Last date for joining the scheme was fixed at June 30. Amount fixed under the scheme could be paid in equal installments on or before December 31.

The budget also proposes to liberalize the amnesty scheme for presumptive dealers which were announced last year. On request of the dealers, the scheme extended to 31st December 2017.