Now, bullion traders of UP have an option

In a major relief to the bullion trade in UP, the state government has announced the compounding scheme for the trade in place of trade tax.

According to the scheme, traders will have to make a one-time payment of a fixed amount to be determined in accordance with their turnover.

The scheme will be valid till the end of March next year. Only the big dealers of gold and silver can avail themselves of the benefit. Against the revenue of Rs 2.75 crore in the last fiscal, the compounding scheme is likely to yield Rs 13 crore in 2006-07. The state cabinet recently approved this proposal.

However, to prevent tax evasion, the traders are required to inform the trade tax department in the next three months whether they will opt for the compounding scheme or pay trade tax at the rate of 1 per cent. If they fail to file their option within the stipulated period then the compounding scheme would be treated as cancelled.

In the case of delay paying of the fee by one month, 1 per cent of the total amount will be charged as late fee; in the case of further delay, the penalty will go up to 2.5 per cent. Interest at 14 per cent will be charged if the payment is made after the expiry of the scheme.

Official sources said in 2005-06, the government lost heavily because the condition of opting for the compounding scheme within three months of the announcement was not there.

Sources said against the normal revenue of Rs 25 crore if trade tax is imposed at the rate of 1 per cent, the collection in 2005-06 was Rs 2.75 crore.

For simplifying the process of land acquisition for "High tech townships" and integrated townships being developed by private developers, the cabinet has decided to empower the high-powered committee, headed by the chief secretary, to approve such proposals.

So far nine projects under the have been sanctioned by the state government. Land for the four projects has been acquired by the private developers and work was under way while on the remaining five projects. The work is likely to begin as soon as the land is acquired.

According to the prevailing law under the UP Zamindari Abolition and Land Reforms Act 1950 (UPZALR Act), there is a ceiling of 12.5 hectares.