Relief for small traders in small towns-Punjab Small Traders Rahat Scheme, 2014

Punjab Government u/s 8-A of the Punjab VAT Act, 2005 has legislated Punjab Small Traders Rahat Scheme, 2014. This scheme has been legislated for the retailers of small towns which falls in the Class-II and Class-III categories notified separately for this purpose.

The main features of this scheme are as follows:

To whom applicable: The person applying under this scheme should be:

(a) Retailer and

(b) he does not conduct any business in any corporation or Class-I municipal Towns and

(c) his taxable turnover (excluding the turnover of the goods covered under single stagetaxation) is less than rupees one crore in a financial year; and

(d) he does not conduct any inter-state sale or purchase.

Method of Calculating Tax Liability: The tax liability of a person opting under this Scheme shall be as per the following table:-

Serial No	Taxable  turnover  (excluding  the  turnover  of  goods covered under single stage taxation)	Tax Liability
1	Rs.0-Rs.25 Lakhs	Rs.5000
2	Rs.25-Rs.50 Lakhs	Rs.10000
3	Rs.50-Rs.75 Lakhs	Rs.15000
4	Rs.75 Lakhs –Rs.1 Crore	Rs.20000

Payment of tax under this Scheme.- (1) Any person who has opted this Scheme shall pay the tax due in four equal quarterly installments like any taxable person.
(2) If a person opts for this scheme in-between a quarter, then he shall pay the tax on pro rata basis.
Benefits under the Scheme – (1) Business premises of any person who has opted under this scheme, shall not be inspected without prior permission of the Excise and Taxation Commissioner.
(2) Assessment of any person who has opted this scheme, shall not be taken up without the prior permission of the Excise and Taxation Commissioner.
If the premises of any dealer has opted this scheme are inspected by any officer of the Department without taking prior permission from the Excise and Taxation Commissioner, in such a case, the dealer may lodge a complaint at a helpline number or e-mail ID specified by the Department for this purpose. The complaint lodged by the dealer shall be promptly looked into and final decision in the matter shall be taken by the Excise and Taxation Commissioner.
General Conditions of the Scheme –
(1) Any dealer who has opted under this scheme will not be entitled for any input tax credit.(2) Any dealer who has opted this scheme will not be entitled to issue any VAT invoice.

(3) Any input tax credit available with the dealer on the date he who has opted this scheme, will automatically be reduced to zero.
(4) If it is found that any person who has opted this scheme has evaded the tax fraudulently or by misrepresentation of facts, he will be proceeded under the provisions of the Punjab Value Added Tax Act as applicable to a taxable person. Decision to proceed in this manner shall be taken at the level of the Excise and Taxation Commissioner.
If a dealer having VAT/TOT number opts this scheme then his VAT/TOT Number shall stand cancelled automatically with effect from the day he opts the said scheme.
How to apply under the scheme: Any person desirous of opting for this scheme/availing the benefits under this scheme shall submit an application as per Annexure ‘A’ to the Designated Officer.
The designated officer shall invariably accept the application, unless he has concrete reasons that the acceptance of the application will lead to substantial tax evasion and shall record the reasons in writing for rejecting the application.
After acceptance of the application, the designated officer shall issue a registration certificate (in format given in Annexure ‘B’) to the applicant.

ANNEUXURE ‘A’

APPLICATION FORM FOR AVAILING BENEFIT UNDER PUNJAB SMALL TRADERS RAHAT SCHEME, 2014.

To

The Designated Officer,

___________________

___________________

Sir,

I,____________________________________________son/daughter of ________________________,Proprietor/Partner/Managing Director/Karta/ Chairman or any other duly authorised person of M/S_______________________________  Regd.  No.__________________,  Address________________________________________________________, hereby submit that my total Turnover for the year _____________ is Rs.______________(excluding the turnover of the goods covered under single stage taxation).

2.                  It is submitted that I am liable to pay Rs. __________ as tax on turnover.

3.                  I hereby undertake to pay this self assessed tax due under this scheme.

4.                  I, solemnly, declare that the information given by me is true to best of my knowledge, belief and records.

(Signature)

Dated _____________                               Name: _____________________

M/S ______________________

TIN No. ____________________

 —————————————

ANNEXURE ‘B’

RAHAT CERTIFICATE

To

___________________,

___________________

___________________

Subject:-        Registration under Punjab Small Traders Rahat Scheme,

1. Your application under the above Scheme has been accepted. You shall be eligible for all the benefits available under the Scheme and shall be also bound by the terms and conditions of the Scheme.

2.      Your Rahat Certificate Number is _________________________ (DISTRICT CODE/WARD NO/RAHAT/Alpha Numeric 4 Digit Number).

3.      If your premises are inspected by any officer of the Department without the prior permission of ETC, you may lodge a complaint at a helpline number

______________or e-mail ID _________________.

(Signature of Designated Officer)

Dated _____________                               Name: _____________________

District:_____________________

The scheme notified can be downloaded here below:

Punjab Small Traders Town, 2014

List of Class I, II, and III towns