The Maharashtra Government has passed the Maharashtra settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2022 ('the Act') for the settlement of arrears of un-disputed and disputed tax, interest, penalty, or late fee ('arrears') remaining unpaid under the specified revenue laws prior to the implementation of GST law in India. The Act will come into force from April 1,2022.
Any person, who is liable to pay arrears under the specified revenue laws, whether registered or not registered, is eligible to apply for settlement of the outstanding arrears.
Further, any person who has availed benefits under any of the earlier introduced amnesty schemes or under the 'Maharashtra Settlement of Arrears in Disputes Act, 2016' or 'Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019', are also eligible to make an application under the Act.
This Act also covers those cases where the State GST department has filed a reference or an appeal before the State Sales Tax Tribunal or the Courts.
2. Time period
The Act will cover the arrears remaining unpaid either wholly or partly, for the period up to June 30, 2017.
Application under the Act for settlement of arrears can be filed from April 1, 2022 up to October 14, 2022.
3. Payment of requisite amount
The requisite amount determined as payable under the Act can be paid either as a 'one-time payment' or in four installments as per the timelines prescribed. Any amount remaining outstanding after adjustment towards arrears will not be refunded to the applicant.
4. Specified laws covered
The Act will cover the following specified laws:
- The Central Sales Tax Act, 1956; or
- The Bombay Sales of Motor Spirit Taxation Act, 1958; or
- The Bombay Sales Tax Act, 1959; or
- The Maharashtra Purchase Tax on Sugarcane Act, 1962; or
- The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975; or
- The Maharashtra Sales Tax on the Transfer of Right to use any
Goods for any Purpose Act, 1985;
- The Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987; or
- The Maharashtra Tax on Luxuries Act, 1987; or
- The Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989; or
- The Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002; and
- The Maharashtra Value Added Tax Act, 2002.
5. Undisputed Tax Amount
The Act will cover the following Undisputed Tax amount:
- the taxes collected separately under the relevant act; or
- the taxes shown payable in the return or the revised return under the relevant act; or
- an amount claimed by the dealer as deductions as per rule 57 of the Value Added Tax Rules or similar rules under other relevant Act; or
- an amount forfeited under the statutory order or excess tax collection shown in the return, revised return or Audit report, as the case may be, submitted under the relevant act; or
- any amount of tax determined and recommended to be payable by the auditor, in the audit report submitted as per section 61 of the Value Added Tax Act, and accepted by the assessee, either wholly or partly; or
- the tax deducted at source ('TDS') by the employer under the Value Added Tax Act; or
- the tax collection made under section 31A of the Value Added Tax Act; or
- the tax payable by the enrolment certificate holder under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975; or
- the tax deducted by the employer under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975; and
- the amount of disallowed set-off under rules 52A or 52B of the Value Added Tax Rules, which is eligible to be claimed in the subsequent period.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.