Maharashtra Tax Settlement Scheme, 2022
Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2022, was introduced on 30th of March, 2022 by issuing trade circular dated 20th April, 2022. The Act, also commonly known as Maharashtra Amnesty Scheme, 2022.
The main objective for introduction of the Maharashtra Amnesty Scheme, 2022 is as follows :
- To unlock the huge arrears of Revenue for periods upto 30th June, 2017,
- To reduce pending litigations under State Tax Laws, then Department can focus on GST completely, and
- To provide Relief measures to dealers adversely impacted by Covid-19 Pandemic.
What All Acts are covered under Maharashtra Amnesty Scheme, 2022:
As per Section 2(k), the Relevant Acts means the following Acts :
- MVAT Act (The Maharashtra Value Added Tax Act, 2002)
- CST Act (The Central Sales Tax Act, 1956)
- BST Act (The Bombay Sales Tax Act, 1959)
- WCT Act (The Maharashtra Sales Tax on the T.O.P. in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989)
- LEASE Act (Maharashtra Tax on Trf of Right to use any Goods for any Purpose Act, 1985)
- ET-MV Act (The Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987)
- ET-Goods Act (The Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002)
- LUXURY Tax Act (The Maharashtra Tax on Luxuries Act, 1987)
- PT Act (The Maharashtra Tax on Professions, Trades, Callings & Employments Act, 1975)
- PTS Act (The Maharashtra Purchase Tax on Sugarcane Act, 1962)
- MST Act (The Bombay Sales of Motor Spirit Taxation Act, 1958)
Period for which the Act is Applicable:
Maharashtra Amnesty Scheme, 2022 is applicable for Settlement of Arrears of Tax, Interest, Penalty or Late fee, for periods upto 30 June 2017. Whereas, the duration for submission of application under the Scheme is from 01st April 2022 to 30Th September 2022.
Important Definitions under Maharashtra Amnesty Scheme, 2022:
1. Section 2(d) – Arrears :
“Arrears means outstanding amount of tax, interest, penalty or late fees, as the case may be,-
- Payable by an assessee as per any statutory order under the Relevant Act; or
- Admitted in the return or, as the case may be, the revised return filed under the relevant Act and which has not been paid either wholly or partly; or
- Determined & recommended to be payable by the auditor, in the audit report submitted as per Section 61 of Value Added Tax, Act, whether the notice under section 32 or 32A of the Value Added Tax Act has been issued or not.
And such arrears of tax, interest, penalty or late fee pertains to specified period and it also includes the interest payable on the admitted tax under the Relevant Act for the specified period.”
2. Section 2(g) – “Disputed Tax means other than undisputed tax”
3. Section 2(q) – “Undisputed Tax means
- Taxes collected separately
- Tax deduction claimed by Dealer in returns or any proceedings
- Taxes shown as payable in Returns or Revised Returns
- Amount forfeited under statutory order or excess tax collection shown in return or revised return or VAT Audit Report
- VAT Auditor’s Recommendation to pay tax as per Report & Accepted by Assessee either wholly or partly
- TDS deducted on Works Contract by Contractee
- TCS collected u/s 31A of MVAT Act
- Tax payable by Profession Tax EC holder
- Tax deducted by Profession Tax RC holder (Employer)
- Set-off Restriction u/R 52A (PSI manufactured goods) or 52B (Aerated drinks, Cigars, Mobiles) under MVAT Law.
Payment of Due under Maharashtra Amnesty Scheme, 2022:
Particulars | Matters pertaining to period on or before 31 March 2005 | Matters pertaining to period 1 April 2005 to 30 June 2017 | ||
One-time payment | Installment | One-time payment | Installment | |
Undisputed tax | 100% | 100% | 100% | 100% |
Disputed tax | 30% | 34% | 50% | 56% |
Interest | 10% | 10% | 15% | 15% |
Penalty | 5% | 5% | 5% | 5% |
In case, where the amount of arrears as per the Statutory order available is less than Rs. 10 Lakhs, then the Dealer or the Applicant can opt for the lumpsum payment @ 20% instead of paying requisite amount as mentioned in the above table.
In addition to this, any arreras as per the Statutory order available as on 01-04-2022 is less than Rs. 10,000/- for the specified period per financial year it shall be written off, including post assessment interest on it. Such write off is not available for orders passed after 01-04-2022.
Conclusion:
Avail this great opportunity to settle the disputes of tax prior to GST at earliest. Contact us on +91 76201 44726 or connect us through mail anam_ca@yahoo.com to opt for this scheme or more information about this scheme.