Sales Tax Instructions

Sales Tax Instructions, 2009
C.No.1(2)STM/99/Pt-IV DATED 26 TH NOVEMBER, 1999
SUBJECT:- TAX DEFAULTERS – PLACEMENT ON ECL.
I am directed to refer to the Board‘s recent correspondence resting on the subject
of recovery of arrears from defaulters.
2. Earlier the term ―defaulters‖ was used according to definition existing in
the relevant tax laws. However, the matter has been reconsidered and it has been decided
that such of the tax defaulters as are ―persons who voluntarily agree to make the payment
of all tax dues in equal installments in a manner that the arrears are liquidated well before
15 th June, 2000‖ may be considered for exclusion from the defaulter‘s list for ECL
purposes.
3. It is, therefore, advised that renewed efforts should be made and where
defaulters voluntarily come up to pay the arrears (of principal amount of sales tax plus
additional tax plus penalty) in installments, the installment facility may be allowed
subject to the following conditions:-
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
a substantial portion of the arrears in paid up-front immediately on
finalization of such agreements;
installments should be payable at shorter intervals i.e. weekly
installments or fortnightly installments should be preferred;
current dues and taxes of such defaults should not go in default during
the installment period;
installment facility shall be secured to the personal satisfaction of the
Collector, against an indemnity bond on a Rs.30 (or proper higher
denomination, as may appropriate) non-judicial stamped paper. The
indemnity bond should be supplemented by 2 surety bonds, with verified
surety of identifiable solvent persons.
in case of default of any one of the installments as agreed, or in case of
default of any current dues of duties/taxes, all the arrears shall become
recoverable in lump sum without any notice, without any prejudice to
prosecution action under clause (a) of section 37-C of the Sales Tax Act,
1990;
this installment facility shall not be construed as exemption or waiver or
concession of additional tax/surcharges/penalties/ charges that accrue on
such arrears under the law/rules; and
such other condition, as you may deem fit and appropriate.
4. Where such an installment facility is allowed and first up-front down
payment is made, the details of installments facility may be intimated to the CBR
alongwith photo copies of the indemnity bond, surety bonds, etc, for exclusion of their
name from the defaulter‘s list.
5. Recovery of such installment facilities should be closely monitored by
the Collectorate very regularly and any delay/default should be actioned under the
law/rules immediately, under intimation to CBR.