Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019
It is a welcome step of State of Maharashtra to make Maharashtra litigation free from VAT era and also collect disputed amount immediately. The tax payers are requested to avail the maximum benefit in the phase one is only where the waiver is substantial but if it is paid in July 19 then the waiver amount is reduced. The scheme will be valid only during April 19 to July 19
An ordinance issued by the Government of Maharashtra to provide for settlement of arrears of tax, interest, penalty or late fee which were levied payable or imposed respectively under various Acts.
Purpose of this ordinance is after the application of the Goods and Services Tax Law, the work-load under the said Act has increased. The large number of cases and litigations are pending under the repealed Laws which involves locking of substantial amount of tax. The Government is, therefore, considers it expedient to provide for a scheme for settlement of arrears of tax, interest, penalty or late fee under the Relevant Act which were levied or imposed, for the periods ending on or before the 30th June 2017.
The scheme envisages the safeguarding of the revenue fully in respect of taxes that are treated as un-disputed tax and with an incentive towards the partial waiver of disputed tax, interest, penalty or the late fee, subject to the conditions laid down in the scheme for the settlement of arrears.
| Sr. No. | Particulars | Details |
| 1. | Acts Covered under this Ordinance (Relevant Act) | · Central Sales Tax Act, 1956,
· Bombay Sales of Motor Spirit Taxation Act, 1958, · Bombay Sales Tax Act, 1959, · Maharashtra Purchase Tax on Sugarcane Act, 1962, · Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, · Maharashtra Sales Tax on the Transfer of the Right to use any Goods for any Purpose Act, 1985, · Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987, · Maharashtra Tax on Luxuries Act, 1987, the Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989, · Maharashtra Tax on Entry of Goods into Local Areas Act, 2002 and · Maharashtra Value Added Tax Act, 2002
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| 2 | Who can apply | · Any applicant whether registered or not under the Relevant Act.
· Any applicant who has availed benefit of earlier Amnesty Scheme 2016
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| 3 | Arrears of Tax (Disputed or un-disputed) | Arrears of tax, interest, penalty or late fees means:
· payable under statutory order · admitted in return / revised return but not paid · determined to be payable by the Auditor in Form 704 and accepted by assessee whether notice is issued or not · in respect of any notice issued · voluntary determined to be payable by assessee |
| 4 | Specified Period | Any period ending on or before 30th June 2017 |
| 5 | Duration of Phase under Ordinance.
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Payment of the requisite amount along with submission of application can be made in two phases as under:
Phase I : 1st April 2019 to 30th June 2019 Phase II: 1st July 2019 to 31st July 2019 In Phase II the amount of waiver is less than the amount of waiver in Phase I. |
| 6 | Conditions for settlement of arrears | · Sperate application in prescribed form should file for each class of arrears under relevant Act.
· Application to be submitted to the designated officer. · Every such application shall be accompanied by the proof of payment of the requisite amount. · No application under this Ordinance shall be entertained in respect of the applicant, who has taken the credit of set-off in the Electronic Credit Ledger through TRAN-1. If credit is availed, said credit should be reversed before submission of the settlement application. · Unconditional withdrawal of appeals pending before Appellate Authority / Tribunal / Court for the respective issues. · No refund of any amounts paid under this ordinance for settlement will not be refunded. |
| 7 | Sequence of Adjustments of amounts already paid | · Any payment made in respect of the statutory order either in the appeal or otherwise, on or before the 31st March 2019, shall first be adjusted towards the amount of tax and thereafter towards the interest and the balance amount remaining unadjusted, shall then be adjusted towards the penalty and the late fee, sequentially;
· The amount remaining outstanding, after aforesaid adjustments if any as on the 1st April 2019, shall only be considered for the settlement and the requisite amount payable towards the settlement of aforesaid outstanding amount and the waiver, therefor · No arrears of tax, interest, penalty or late fee, if any, shall be settled under the Ordinance, in case the statutory orders are made or returns or the revised returns are filed after the 15th July 2019. |
| 8 | Determination of requisite amount and extent of waiver. | Refer Annexure A and Annexure B |
Annexure A:
| Sr. No. | Amount | First Phase | Second Phase | ||||
| Amount to be paid | Amount of Waiver | Amount to be paid | Amount of waiver | ||||
| (a) | (b) | (c) | (d) | (e) | (f) | ||
| 1 | Un-disputed Tax amount | 100% of the amount in column (b). | NIL | 100% of the amount in column (b). | NIL | ||
| 2 | Disputed Tax | 50% of the amount in column (b). | 50% of the amount in column (b). | 60% of the amount in column (b). | 40% of the amount in column (b). | ||
| 3 | Amount of interest payable as per any statutory order or returns or revised returns. | 10% of the amount in column (b). | 90% of the amount in column (b). | 20% of the amount in column (b). | 80% of the amount in column (b). | ||
| 4 | Outstanding penalty amount as per any statutory order. | 5% of the amount in column (b). | 95% of the amount in column (b). | 10% of the amount in column (b). | 90% of the amount in column (b). | ||
| 5 | Amount of post assessment interest or penalty or both leviable but not levied up to the date of application by the dealer under Relevant Act | 0% of the amount in column(b). | 100% of the amount in column(b). | 0% of the amount in column(b). | 100% of the amount in column(b). | ||
| 6 | Late fee payable in respect of returns filed during the period | 0% of the amount in column(b). | 100% of the amount in column(b). | 0% of the amount in column(b). | 100% of the amount in column(b). | ||
Annexure-B
| Sr. No. | Amount | First Phase | Second Phase | ||
| Amount to be paid | Amount of Waiver | Amount to be paid | Amount of waiver | ||
| (a) | (b) | (c) | (d) | (e) | (f) |
| 1 | Un-disputed Tax Amount | 100% of the amount in column (b). | NIL | 100% of the amount in column (b) | NIL |
| 2 | Disputed Tax Amount | 70% of the amount in column (b). | 30% of the amount in column (b). | 80% of the amount in column (b). | 20% of the amount in column (b). |
| 3 | Amount of interest payable as per any statutory order or returns or revised returns. | 20% of the amount in column (b). | 80% of the amount in column (b). | 30% of the amount in column (b). | 70% of the amount in column (b). |
| 4 | Outstanding penalty 5% of the amount as per any statutory order. | 10% of the amount in column (b). | 90% of the amount in column (b). | 20% of the amount in column (b). | 80% of the amount in column (b). |
| 5 | Amount of post assessment interest in column (b). or penalty or both leviable but not levied upto the date of application by the dealer under Relevant Act. | 0% of the amount in column (b). | 100% of the amount in column (b). | 0% of the amount in column (b). | 100% of the amount in column (b). |
| 6 | Late fee payable in respect of returns filed during the period commencing from the 1st April 2019 to 31st July 2019 | 0% of the amount in column (b). | 100% of the amount in column (b). | 0% of the amount in column (b). | 100% of the amount in column (b). |
