NOTE ON VOLUNTARY DISCLOSURE SCHEME INTRODUCED UNDER THE PUNJAB VALUE ADDED TAX ACT 2005

Excise & taxation Department has introduced Punjab Voluntary Disclosure of Value add Tax scheme, 2013 which will come into force with immediate effect i.e. from 20^th Dec 2013. The scheme was introduced to bring a greater transparency in discharge of tax liabilities & applicable for a taxable persons & registered person under the PVAT act 2005 subject to the terms & conditions. For availing the scheme such persons is under an obligation to make an application in the prescribed format appended on or before the 31^st day of January, 2014 and on receipt of such application the Designated Officer after examining make an assessment for the tax due against such person along with interest amount payable under sub section (3) of section 32 of the act which shall be computed from the date when it become due till the date of making the application and pass an order within period of 30 days from receipt of application after finalisation of the assessment tax demand notice will be served upon the person concerned not later than a period of 7 days from the date of passing the order. Here it is pertinent to point out that while making the assessment opportunity of hearing will be afforded to the concerned person before passing orders for such application.

APPLICATION FORM FOR AVAILING BENEFIT UNDER THE PUJAB VOLUNTARY DISCLOSURE OF VALUE ADDED TAX SCHEME, 2013

To

                                                                         The Designated Officer,

                                                                         ___________________

                                                                         ___________________

Sir,

                        I, _____________________________________________________ son of ___________________________ resident of _________________________________________, Proprietor/ Partner/ Managing Director/ Karta/ Chairman or any other duly authorized person of M/S __________________________________________ Regd. No. ______________________________ hereby submit that the claim made under clause __________________________________ of this scheme as under:-

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. It is submitted that inadvertent mistakes or errors crept in submitting return for the period _______________________________________ and as per fresh calculation; it comes to Rs. ___________________ along with interest amounting to Rs.____________________ (Total tax amount + interest amount =Rs.____________________________)

3. I hereby undertake to pay this re-assessed due tax or the tax duly assessed by the Designated Officer or the Deputy Excise and Taxation Commissioner of the concerned division, as the case may be, under this scheme.

                                                                                                            (Signature)

                                                                                       Name: ________________

Dated________________                                                  M/S___________________

                                                                                        TIN ___________________

A person aggrieved by an order shall file an appeal before the Deputy Excise & Taxation Commissioner of the concerned division and the order of Deputy Excise & Taxation Commissioner shall be final & binding on the person concerned. Strange rather shocking Deputy Excise & Taxation Commissioner is the final authority & person cannot avail a chance before the tribunal why so reasons best known to the department.

The person who has made an application is under an obligation to deposit 25% from the date of service of tax demand notice & remaining 75% amount of tax demand so assessed within period of 60 days from the expiry of period of 30 days. Beside this if in any case such person does not deposit the aforesaid amount within stipulated period he accordingly inform the Designated officer who shall permit him to deposit in 3 equal quarterly instalments by passing a speaking order subject to additional interest at the rate of 1% per month on such balanced amount on reducing balance basis from the date the said amount was payable & if the person fails to pay the full amount as assessed by the Designated officer or The Deputy Excise & Taxation Commissioner, as the case may be shall be proceeded against under the relevant provision of the act.

This scheme is applicable subject to terms & conditions which are as under:-

a.     That he has claimed the input tax credit but such tax has not actually been deposited by him in the state treasury;

b.     That he has claimed the concessional rate of tax under the act on account of branch transfer or under the interstate trade but the goods have actually not been sent by him outside the state or has submitted statutory for the aforesaid purpose , but the same were not submitted properly by him before the Designated officer;

c.      That the person has made zero rated sales on account of exports but such exports either did not took place or were over invoiced;

d.     That the person  has not calculated the tax liability bin a correct manner for the aforesaid item and has resultantly paid lesser tax in the state treasury , in such an event , he shall perform the designated officer as to by which means calculations had been done by him  while computing & depositing the tax, while making such application, such person shall undertake that he would pay a simple interest at the rate of one & half percent on the balance amount from the date it becomes due till the date of making of application under this scheme;

e.      That the persons to whom a notice under section 28 or sub section (1), (2), (4) of section 29 of the act, has been issued before the date of filing an application under this scheme, shall not be eligible for getting any benefit under this scheme.

f.       That the persons whose business premises have been inspected by for the designated officer as per the provision of section 46 of the act or a notice for the production of the account or a notice for making investigation, has been issued before the date of filing an application shall not be eligible for getting any benefit under this scheme and

g.     That the persons. Who come forward for getting any benefit under this scheme, shall brings into the notice of the designated officer any inadvertent mistake or error took place in payment of due tax and he shall not be proceeded against for such voluntary disclosure.

Scheme was introduced but in fact remedy against the order passed is limited as the first appellate authority shall be the final authority whose working is under the superintendence & control of commissioner moreover this power lies with DETC (Administration) which reflects executive & judiciary in one hands.  That law and justice are like a living being and his shadow if one goes, the other too disappears. Thus law is the most essential pre-requisite for dispensing justice. True, where law ends, tyranny begins. So the scheme should be  friendly and must be in consonance with the principle of natural justice.