FAQs on Vivad se Vishwas Scheme The Finance Minister, Nirmala Sitharaman, had propounded a bill...
As part of an incentive package to boost up consumption in an economy that is struck hard by the coronavirus pandemic, the government proclaimed an LTC cash voucher scheme for its employees. By choosing this scheme, the union government employees can buy goods and services instead of the tax-exempt portion of the Leave Travel Allowance/Leave Travel Concession (LTC/LTA). Through this scheme, the Central Government employees can opt for the exemption of tax on the travel fare that can be encashed if the total amount is spent by satisfying specified conditions.
The private sector employees, state government employees, and the employees of public sector banks and public sector units can also avail of the scheme provide they have to follow the procedure of the scheme.
To clear all the queries of employees who want to opt for the LTC Cash Voucher Scheme, the central government has released fifteen FAQs with respect to this scheme. The FAQ answers all the queries regarding whether purchases from e-commerce websites are allowed, the number of transactions, and what services are qualified under the scheme.
The following are the FAQs by the ministry of finance concerning the Scheme of LTC Cash Voucher:
Answer – An employee might not need to take leave for this reason nor undertake any travel. This is a scheme instead of LTC travel.
Answer – This scheme of LTC cash voucher is pertinent to the LTC fare which is not utilized during the block year as declared in the office memorandum dated 12th November 2020.
Answer – An employee can avail of the cash voucher scheme utilizing the pertinent LTC fare without leave encashment. The expenses should be in accord with the ratio as prescribed for the fare of LTC.
Answer – If as per the computation recommended in office memorandum No. 12(2) / 2020- E. II A dated 12th October, 2020, the reimbursable sum is less than the advance drawn; this would be dealt with as non utilization. However, after calculation of the claim, the amount of balance, if any may be recovered from an individual.
Answer – An employee might utilize any one of the LTC accessible in a block year.
Answer – The estimated fare has been calculated based on the basic eligibility of a person and the special packages would not be pertinent for this scheme.
Answer – All the multiple bills are being accepted. The procurement should have been done from the issue date of the memorandum of the office till the end of the financial year. The purchase bill should carry a GST rate of 12% and above and reimbursement should have been made to online mode.
Answer – There is no single prescribed format for this scheme. A simple submission conveying the aspiration of the employee for availing the cash voucher scheme if the advance is mandatory for the purpose of same is to be declared
Answer – Any services and goods which attract goods and service tax at the rate of 12% and above would succeed. The bill with GST details should be proposed and payment of the same should be made through the online mode.
Answer – As replied before, an employee can aim for the cash voucher scheme in partial, which is of the LTC of part of the qualified family. Since this is not an obligatory scheme, if the fare of LTC of any member of such family has not been utilized for this purpose, those affiliates of the family can avail of LTC subject to the level of instructions under the rules of LTC.
Answer – The settlement is based on making of an invoice with details of GST. As far as promising, the claim should be settled and made well before 31st March 2021 to keep away from any last minute rush and resulting lapse.
Answer – It is being enlightened that the bill which is being proposed for applying for the compensation under the scheme of cash vouchers that should be in the name of an employee who is willing to avail of the LTC cash voucher scheme.
Answer – Any service which is having any component of GST more than the rate of 12% is acceptable.
Answer – Purchasing from any e-commerce platform is also permitted provided the relevant bill/ details must be submitted.
Read our article:Finance Ministry Launches LTC Cash Scheme and Festive Schemes