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Poor response to Amnesty scheme along VDIS line

NAGPUR, FEB 5: An Amnesty Scheme launched by the state Government for contractors on the pattern of the Central Government's Voluntary D...

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NAGPUR, FEB 5: An Amnesty Scheme launched by the state Government for contractors on the pattern of the Central Government’s Voluntary Disclosure of Income Scheme (VDIS)’ and Kar Vivad’ schemes for voluntary income disclosure, has evoked a poor response.

The Amnesty Scheme was launched under the provisions of Works Contract Act and Lease Tax Act considering the scanty information available on the business which runs into crores every year. In case of unregistered contractors, whose number is estimated to be about 75,000, no information is available with the Government. An estimate puts the number of registered contractors in the State at about 45,000.

The scheme was introduced a month back with a view on Rs 100 to Rs 150 crore. But the scheme has evoked a poor response as most contractors have preferred to consult their chartered accountants before responding to the government announcement. According to leading contractors, a large number of small contractors are not even aware of such a scheme.Contractors, who are aware of its existance, have complained the procedure for applying for amnesty is complicated one.

The scheme covers all contractors doing private and government work like road and building construction work. The scheme will be in force till June 30. All contractors who have discontinued business from December 1998 are also expected to file returns with specially appointed officers of the scheme. After filing returns, the tax liability would be fixed by these officers.

A circular issued by the sales tax commissioner gives details of the procedure applicable for different types of contractors seeking benefits under the amnesty scheme. For contractors, who have already filed appeals could withdraw the same seek benefits under it.

According to a sales tax officer, the contractors plea that they are not aware of the scheme it was not properly publicised, held no water. It is the last chance for the contractors who have failed to pay tax under the Works Contract Act. The department wouldinitiate penal action action against the erring contractors after the deadline mentioned in the Amnesty Scheme, he said.

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