CHENNAI: Chief Minister MK Stalin on Tuesday announced the launch of Samadhan Scheme to settle tax disputes and collect long-pending commercial tax arrears of Rs 25,000 crore. While Rs 147 crore arrears of 95,502 small traders with tax dues of up to Rs 50,000 each will be waived off completely, those with arrears of up to Rs 10 lakh can pay 20% and get full waiver on dues, penalty and interest. This is the first time in the state’s history such full waiver is being offered to small traders, the CM said.
Making the announcement in the assembly under Rule 110, the CM said the scheme will be in force for four months (October 16, 2023 to February 15, 2024). There are 2,11,607 pending tax cases involving 1,42,569 commercial establishments, the CM said. Official sources said the scheme, being rolled out after 12 years, is to give effect to the announcement made by the state government on August 13, 2021, on clearing pending tax dues under state VAT and other taxation laws.
Under the scheme, traders with tax dues are divided into five categories. In the first category, there are 95,502 traders and their arrears stand at Rs 146.93 crore. These arrears have been totally waived off and 1,002 attached assets will be released immediately. For the other four categories, the government has put forth certain conditions. For those with tax liability of up to Rs 10 lakh, the applicant can pay 20% of the total arrears and settle the case. This category comprises 38,163 traders with total arrears of Rs 1,399.90 crore.
TN Taxes Act passed to give effect to Samadhan Scheme
There are also three more options available for traders under this category. The third category comprises of 7,265 traders whose arrears range between Rs 10 lakh and `1 crore and the total outstanding dues of Rs 3,494 crore. The fourth category comprises 1,454 traders whose arrears are between Rs 1 crore and Rs 10 crore and their total tax dues is Rs 6,780 crore.
The fifth category comprises 185 traders who have arrears of Rs 10 crore, with total outstanding dues of Rs 13,072 crore. Guidelines are drawn for traders who have accepted the tax levied and those who have gone on appeal against the tax levied. The assembly on Wednesday passed the TN Taxes (Settlement of Arrears) Act, 2023, introduced by Commercial Taxes Minister P Moorthy to give effect to the Samadhan Scheme.