GOVT EXTENDS INTEREST WAIVER SCHEME FOR TRADERS FOR 3 MONTHS

LUCKNOW : The state government has extended the interest waiver scheme for traders, cable operators and other dealers for three months in view of the continuing pandemic.

The one-time settlement scheme (OTS) sought to waive the interest on the tax liabilities created against dealers registered under the UP Sales Tax Act, the Central Sales Tax Act, the UP Entertainment Tax Act and the UP Cable Television Network Act up to December 2020 provided that defaulters could pay the full principal amount at one go.

The one-time settlement scheme was launched for three months from March 3 to June 2.

The government on Monday issued a fresh notification extending the same scheme till September 2 considering the fact that most traders could not avail the scheme due to the start of the second wave of the pandemic in March end.

“The scheme will now remain in effect from March 3, 2021 to September 2, 2021 with all the terms and conditions being the same as laid down in the GO issued on March 3, 2021,” the notification issued by additional chief secretary, commercial tax, Sanjiv Mittal said.

Earlier, commercial tax commissioner Ministhy S on May 25 wrote a letter to the government proposing the extension of the interest waiver scheme that covers tax liabilities only prior to the GST regime that came into effect on July 1, 2017.

The scheme offers 100% waiver of interest component on the arrears up to Rs 10 lakh, 90% on the arrears more than Rs 10 lakh and up to Rs 1 crore, 50% on the on the dues between Rs 1 crore and 5 crore and only 10% on the arrears if they are above Rs 5 crore.