Punjab's VDS fails to get desired response

Punjab government's ambitious voluntary disclosure scheme (VDS) has failed to elicit "desired" response from traders with state excise and taxation department now deciding to extend last date to avail VDS by one month.
Noting that VDS was bound to get "lukewarm" response, the trading community said traders did not come forward to avail this scheme as they feared harassment at the hands of department officials by launching extensive investigation into their trade at later stage.
"Not many traders have come forward for VDS ...We are going to extend the last date for applying this scheme by one month (till February 28)," a senior official of Punjab Excise and Taxation department said here.

Punjab Voluntary Disclosure of Value Added Tax Scheme, 2013 Scheme allows dealers or traders who have made any discrepancy while discharging tax liabilities to get repreive from penal action by opting for it.
The department has fixed January 31 as last date for traders to apply for this scheme.
Under the scheme, dealers or traders could get their "mistakes rectified" by paying outstanding tax along with 1.5 per cent simple interest from the date it became due.

"From the day of its launch, we knew that there will be poor response to VDS. The state government has not made it traders' friendly so as to get maximum response," Punjab Pradesh Beopar Mandal, State Secretary, Mohinder Aggarwal said today.

Aggarwal said the state government should have not imposed any interest on oustanding tax amount in order to make it traders friendly.
The biggest fear among traders about this scheme was that trading community felt that they could be harrased by department officials with further inquiry into their trade or business.
"There is fear among trader that they will be subjected to unwarranted harassment at some later stage when the department will have all relevant details about the trade and can launch further inquiry to detect any past tax evasion," he said.
The government should have ensured through VDS that there will not be any "undue" inquiry by department officials at any stage.