CA Umesh Sharma
Arjun (Fictional Character): Krishna, the Maharashtra Government has introduced the scheme in the L.A. BILL No. IX of 2022 to settle old disputes. Considering the same, the government has introduced disputes between the Maharashtra government and taxpayers.
Krishna(Fictional Character): Arjuna, Maharashtra govt. has introduced a separate scheme on 16th March,2022 named as "Maharashtra Settlement of Arrears of Tax, Interest, Penalty, or Late fees 2022". This scheme is applicable regarding concessions on various taxes levied by Sales Tax Department before introduction of GST Act i.e., for the periods up to 30th June 2017.It means the Govt. is in full endeavour to complete pending disputes of MVAT, etc. Due to which, disputes that are carried forward from years will be settled as well as Govt. will collect tax. Also, expenditure on disputes will be cut down. But how the taxpayers respond to this scheme, this has to be seen.
Arjun (Fictional Character): Krishna, what is meant by disputed amount?
Krishna (Fictional Character): Arjun, Disputed amount means Tax, Interest, penalty, late fees payable as per any Statutory order under the relevant act before GST i.e., MVAT, or notice, litigation, etc. Even if any amount is payable as per other disputes, this scheme shall be applicable.
Arjun (Fictional Character): Krishna, is there any specific condition to avail the benefit of this scheme?
Krishna (Fictional Character): To avail benefit of this scheme, the appeal filed by the dealer needs to be withdrawn unconditionally
Arjun (Fictional Character): Krishna, what is the duration to pay required amount?
Krishna (Fictional Character): The duration of this Amnesty Scheme will be from April 1, 2022, to September 30, 2022. The dealer has to pay the required amount at one time within the stipulated period. However, the dealers having arrears of more than Rs. 50 lakhs have been provided an option to pay the required amount in instalments.
Annexure A |
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(for the period commencing on or after the 1st April 2005 and ending on or before the 30th June 2017)
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Annexure B
(for the period ending on or before the 31st March 2005)
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Sr. No. |
Particulars |
Onetime payment option |
Instalment option |
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Amount |
Payment |
Waiver |
Payment |
Waiver |
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1 |
Undisputed Tax |
100% |
0% |
100% |
0% |
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2 |
Disputed Tax |
30% |
70% |
34% |
66% |
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3 |
Interest |
10% |
90% |
10% |
90% |
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4 |
Penalty |
5% |
95% |
5% |
95% |
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5 |
Post assessment penalty or interest |
0% |
100% |
0% |
100% |
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6 |
Or |
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7 |
Where amount of arrears is less than or equal to 10,00,000 |
20% |
80% |
NA |
NA |
Arjun (Fictional Character): Krishna, how to calculate amount payable under the scheme?
Krishna (Fictional Character): Arjun, Let's take an example.
A disputed tax liability of Rs 2,50,000 dated 1st April 2017.
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As per 1-5 point of Table |
As per 7th Point of Table |
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As per Statutory Order |
Amount |
Rate of Amount to be paid |
Amount to be Paid |
Rate of Amount to be paid |
Amount to be Paid |
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Disputed Tax |
2,50,000 |
50% |
1,25,000 |
20% |
50,000 |
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Interest @ 18% |
2,25,000 |
50% |
1,25,000 |
20% |
45,000 |
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Penalty |
2,50,000 |
5% |
12,500 |
20% |
50,000 |
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Total |
7,25,000 |
2,62,500 |
1,45,000 |
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Conclusion: Thus, the assess shall opt for Point No.7. |
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Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?
Krishna (Fictional Character): Arjun, in life, everything does not happen as we want it to happen. Everyone has to compromise somewhere or the other. Same goes with Tax regulations. This scheme is introduced so that MVAT taxpayers will not have to visit department for ages. We expect Central government to introduce same ordinances for Excise as well as service tax and other central tax laws
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