TSC classifies cases based on due amount to expedite settlement

KATHMANDU:

The Tax Settlement Commission (TSC) has classified the revenue dues based on the volume to expedite the settlement process. TSC has started the process to settle 130,182 cases — 67,096 related to income tax and 63,086 related to value added tax (VAT) — of revenue dues worth Rs 48.15 billion.

Of the total 67,096 cases related to income tax dues worth Rs 20.02 billion, there are 60,443 cases worth Rs 11.40 billion that fall in the bracket of those who owe Rs 20,000 to Rs 100,000, as per TSC. “The remaining 6,653 cases have income tax dues worth Rs 8.63 billion and each case in this category has revenue dues of over Rs 100,000.”

Similarly, there are 63,086 cases of VAT dues, where 58,518 cases have been categorised under dues of less than Rs 500,000. Such cases account for Rs 3.41 billion owed to the government out of total Rs 28.13 billion in VAT dues. TSC has found large chunks of VAT dues in 1,545 cases, where dues range from Rs 500,000 to Rs one million. Total due under this category is worth Rs 4.82 billion.

“We’ve categorised cases in terms of revenue dues and invited the taxpayers to settle their dues,” said Chudamani Sharma, one of the members of TSC as well as director general of the Inland Revenue Department.“TSC is not authorised to review the tax amount set by the tax administration, but it can revise the penalties in genuine cases.”

The commission is also looking into the balance dues of sick or troubled firms and industries, whose tax bills may be swelling due to their inability to file tax returns.

As per officials of IRD, of the total cases, 3,097 cases worth Rs 27.96 billion have filed for appeal against tax administration. Cases are filed at IRD for administrative review, in Revenue Tribunal and Supreme Court as well.

The government has extended opportunity to the taxpayers to settle the disputed and non-disputed dues till fiscal 2013-14 by forming a TSC, which taxpayers themselves were demanding since long.

Similar commissions were also formed in the past as per provision in the Tax Settlement Commission Act 1976. TSC has been given a deadline of mid-July to complete its task. Revenue collected by the TSC will be accounted in this year’s revenue collection.

Classification

Income Tax

Range No of cases Outstanding dues (in Rs million)

Up to Rs 20,000 48,632 200.6

Rs 20,000 to Rs 50,000 6,847 199.3

Rs 50,000 to Rs 100,000 3,767 242.8

Above Rs 100,000 6,653 8625.3

VAT

Range No of cases Outstanding dues (in Rs billion)

Up to Rs 500,000 58,518 3.41

Rs 500,000 to Rs 1 million 1,545 4.82

Rs 1 million to Rs 2.50 million 808 4.29

Rs 2.50 million to Rs 5 million 310 3.5

Rs 5 million to Rs 10 million 157 2.97

Above Rs 10 million 69 2.37

Source: THT