Arjun (Fictional Character): Krishna, the Maharashtra Government has introduced various schemes in the Budget to settle old disputes. Considering the same, the government has introduced an scheme to solve disputes between Maharashtra government and taxpayers.
Krishna (Fictional Character): Arjuna, Maharashtra govt. has introduced a separate scheme on 11th March,2022 named as “Maharashtra Settlement of Arrears of Tax, Interest, Penalty, or Late fees Scheme-2022”. The complete detail of scheme is awaited. 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Krishna (Fictional Character): To avail benefit of this scheme, the appeal filed by the dealer needs to be withdrawn unconditionally.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.
| Particulars | Tax | Interest | Penalty | |||
| Arrears | Payment | Waiver | Payment | Waiver | Payment | Waiver |
| Upto 10,000 | 0% | 100% | 0% | 100% | 0% | 100% |
| Above 10,000 but less than 10,00,000 | 20% | 80% | 20% | 80% | 20% | 80% |
| Above 10,00,000 but less than 50,00,000 (Upto 31st March 2005) | 30% | 70% | 10% | 90% | 5% | 95% |
| Above 10,00,000 but less than 50,00,000(From 1 April 2005 to 30th June 2017) | 50% | 50% | 15% | 85% | 5% | 95% |
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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What if, due to calculation errors, there is a difference in the Interest amount for Return Dues?
For example: For a quarter the Return dues break up of Tax and Interest is 15000 and 4500 (Total 19500) respectively. But, due to oversight or calculation issues, the payment was made of only 17500 instead of 19500. Also, the payment was made on 25th September and the error was realised on the 14th of October.
I hope I am clear in my explanation.
Sir, Nicely elaborated, still some clarification needs
1. does it mean that filing of Appeal is necessary to avail the benefit of scheme??
2. what will happen with the amount paid under protest at the time filing appeal ?
3. During appeal proceedings, my order is pending to pass, whereby my claim will be reduced to 25% and thereafter I can take benefit of above amnesty..
lot of thanks