GST Course

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The Government observed that many persons /firms / companies / societies/ institutions etc. have not obtained enrolment certificate and are not paying profession tax. The Act provides for levy of penalty on such “persons” for failure to get enrolled/registered and pay  tax due.

Third Proviso to Section 3(2) of The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 provides that unenrolled/unregistered person shall pay tax up to 8 years, preceding the year, in which he had applied for registration/enrolment.

And even section 5(5) of above mentioned act provides that the person liable to registration/enrolment has failed to apply within the required time, penalty of rupees two for each day of delay shall be imposed.

According, Govt. of Maharashtra has come out with an Amnesty Scheme where a new sub section 3 has been added to Section 3 w.e.f. 01/04/2016 which provides that unenrolled person shall not liable to pay Professional tax for period prior to 01/04/2013 if he makes an application for enrolment (PTEC) from 01/04/2016 to 30/09/2016 i.e pay tax for only 3 years rather than 8 years as provided in section 3(2) of The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

Benefit under the Scheme :-

1. Professional Tax and related interest in respect of period prior to 01/04/2013, will be waived in full, if PTEC certificate is obtained during 01/04/2016 to 30/09/2016.

2. Penalty u/s 5(5) i.e. Rs.2 for each day of delay will not be imposed.

Table exemplifying why one should enrolled for this scheme:-

Particular

Liability without Amnesty Scheme

Liability with Amnesty Scheme

Prof. tax

Rs.2500* 8 years

Rs.20,000/-

Rs.2500*3 years

Rs.7,500/-

Interest u/s 9(2) r.w.t sec.9(3)

Rs.20000*1.25%*8 years*12 months

Rs.24,000/-

Rs.20000*1.25%*3 years*12 months

Rs.3,375/-

Penalty u/s 5(5)

Rs.2*365 days*8 years

Rs.5,844/-**

Rs.2*365 days*3 years

Rs.2,194/-**

Total Payment

                                               Rs.49,844/-

                                              Rs.13,069/-

** Extra day in Leap years are considered.

The author can also be reached at ayazkarim55@gmail.com

Every effort has been made to avoid errors or omissions. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of. It is notified that the author will not be responsible for any damage or loss from action taken based on this article/material to any one, of any kind, in any manner.

Sources: - Tarde Circular 12T of 2016 available at http://www.mahavat.gov.in and relevant laws, rules and regulations.  


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