Punjab Small Traders Rahat Scheme – Pay Lump Sum Annual Tax

By | November 27, 2017

Rahat Scheme Punjab – Pay Lump Sum Annual Tax

In a bid to provide relief to small traders, Government of Punjab has launched Punjab Small Traders Rahat Scheme for small traders since 2014. It offers them hassle-free tax structure and they just have to pay lump sum annual tax.

Rahat Scheme


  • He/she is a retailer
  • He doesn’t have any business in any Class-1 municipal town or corporation of the state
  • His taxable turnover in a financial year is up to ₹ 1 crore
  • He doesn’t run any inter-state sale or purchase

Lump Sum tax to be paid

Following tax structure applies for the tax to be levied on specified turn over.



Turn Over Lump Sum Tax
up to ₹ 25 lakh ₹ 5000
₹ 25 lakh – ₹ 50 lakh ₹ 10,000
₹ 50 lakh – ₹ 75 lakh ₹ 15,000
₹ 75 lakh – ₹ 1 crore

₹ 20,000

How to avail benefits of the Rahat scheme?

Any trader who opts to avail benefits of the scheme will have to apply for it in a prescribed form to the designated officer. The designated officer will scrutinize the application and if accepted, will issue a registration certificate.

The tax is to be paid in four quarterly installments. If anyone opts for the scheme in-between a quarter, then the tax is to be paid is on pro-rata basis.

Benefits of the scheme

A business person who has opted for this scheme can’t be inspected without prior permission of Exercise and Taxation Commissioner. If done so, then the person can file a complaint against it through phone or email. The matter will be looked into and the final decision will be taken by authorities.

General Conditions under Rahat Scheme

  • Any trader, who is paying lump sum tax under this scheme, won’t get any input tax credit. If any input credit is available earlier, it will be reduced to zero.
  • He can’t issue any VAT notice.
  • If any fraudulent tax evasion is found, proceedings against him will take place according to the provisions of Punjab Value Added Tax Act.
  • If any trader who has VAT/TOT number and opts for this scheme, then his VAT/TOT number gets automatically canceled from the day the scheme has been adopted.

Rahat Scheme Punjab literally provides relief to small traders in the state. There are several benefits to be enjoyed under the scheme and by just paying lump-sum tax to save them from various tax-related proceedings.

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