Finance Ministry has relaxed some circumstances for LTC Money Voucher Scheme and suggested all Central Ministries and Division to make sure competition advance is given earlier than Diwali.
“The bill of the products & providers bought as per the scheme could also be within the identify of partner or another member of the family who’re eligible for LTC fare,” an workplace memorandum of Expenditure Division mentioned.
Earlier it was mentioned that the bill — which is being submitted for reimbursement below the scheme — needs to be within the identify of worker solely.
Block 12 months & GST
The LTC money voucher scheme, introduced on October 12, prescribes money fee in lieu of 1 LTC throughout 2018-21, through which an worker, choosing the scheme can be required to purchase items/providers 3 times the fare and one time the go away encashment earlier than March 31, 2021. The nice or providers needs to be attracting GST on the fee of 12 per cent or extra.
The scheme was initially introduced for Central Authorities workers with expectation that State Authorities and personal sector, too, will give the profit. Later, the Revenue Tax Division supplied revenue tax exemption to non-Central authorities workers (these belonging to State governments and personal sector) much like Central authorities workers.
The worker spends a sum equals to a few occasions of the worth of the deemed LTC fare on buy of products/providers which carry a GST fee of not lower than 12 per cent from GST registered distributors / service suppliers by means of digital mode throughout the interval from October 12, 2020 to March 31, 2021 and obtains a voucher indicating the GST quantity and the quantity of GST paid. The fee of money allowance, topic to most of ₹36,000 per individual as Deemed LTC fare per individual (Spherical Journey) to workers, can be allowed income-tax exemption.
Settlement of advance
There was one other problem relating to settlement of advance taken below the scheme. Rule says that the advance taken needs to be settled inside 30 days of the disbursal of advance. Nonetheless, the Ministry mentioned that since it is a particular scheme which suggests guidelines regarding advance taken below LTC should not relevant right here. It means the advance taken below the scheme can be settled on or earlier than March 31.
In a separate Workplace Memorandum, Expenditure Division has requested all Ministries/Departments to make sure disbursal of pre-paid UTSAV Card (given as part of competition advance) to workers nicely prematurely earlier than Diwali.
Below the Particular Pageant Advance, all Central Authorities workers can be eligible for interest-free mortgage of ₹10,000. This quantity can be given as pre-loaded RuPay card and recovered in 10 equal instalments. The quantity really spent can be recovered whereas the stability will lapse after March 31, 2021.