This Tax Alert summarizes the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Bill, 2023 introduced in Maharashtra Legislative Assembly.
The Government had proposed an amnesty scheme for various taxes levied before
the introduction of Goods and Service Tax (GST) in the State Budget 2023-24
presented on 9 March 2023.
The scheme shall apply to all pending dues under specified state legislations
for the period upto 30 June 2017, i.e., before the introduction of GST.
Duration for submission of application under the scheme shall commence on 1 May
2023 and end on 14 November 2023. Option for payment in instalments has been
made available in cases where arrears are in excess of INR50 lakhs.
The payment of dues under the scheme is summarized below:
|
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% |
||
|
Disputed tax |
30% |
34% |
50% |
56% |
|
Interest |
10% of total
interest |
15% of total
interest |
||
|
Penalty |
5% of total
penalty |
5% of total
penalty |
||
Further, dealers having arrears upto INR50 lakhs as per the statutory orders have an option to pay a lump-sum amount of 20% of the total arrears.
Comments:
The amnesty scheme appears to be more attractive than the scheme which was introduced in 2022. Taxpayers who missed availing the benefit of the scheme last year may take benefit under this scheme.
The amnesty scheme introduced for second consecutive year signifies the intent of Government to unlock the sizeable portion of tax dues locked under the old pending litigations.
It is relevant to note that similar scheme has also been announced by the State of Jharkhand in its Budget.
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