Mumbai: Days after announcing an amnesty scheme for the pending sales tax arrears before the launch of the GST for small-time businesses and industries in Maharashtra that are reeling under the economic havoc caused by Covid-19, the state government on Monday revealed the scheme's details. Called the 'Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme-2022', it will be implemented from April 1 till September 30. Deputy Chief Minister Ajit Pawar, who had mentioned about the scheme in his annual budget for 2022-23, said that tax arrears up to Rs 10,000 will get a complete waiver, which will benefit around one lakh small-time businesses.
In cases of arrears up to Rs 10 lakh or less, businesses will need to pay an online lump sum of 20% of the amount, and the waiver will be granted for the remaining amount. This is likely to benefit almost 2.20 lakh businesses. Also, traders with arrears of up to Rs 10 lakh as of April 1, 2022 have been given the option to pay 20% of the total arrears without any calculation of non-disputed tax, disputed tax, or penalty. If such a lump sum amount is paid, the remaining 80% will be waived, Pawar said. He clarified that traders who are not eligible to pay a lump sum or who do not choose this option will not be given tax deduction in the proposed scheme for settlement of arrears.
The undisputed tax will have to be paid 100%, Pawar said. However, the disputed tax will have to be paid 30% for the period before March 31, 2005. In addition, 10%interest and 5% penalty will have to be paid, he added. In addition, for the period from April 1, 2005 to June 30, 2017, after the payment of 50% of the disputed amount, 15% of the interest, 5% of the penalty and 5% of the late fee, the government will waive the remainder arrears, Pawar said.
To avail the scheme, taxpayers will have to pay the requisite amount within the stipulated date. “For dealers having arrears beyond Rs 50 lakh, there's an option to pay the amount in installments. The total installment discount is divided into four parts. The first installment of 25% is required to be paid by September 30, 2022, and the remaining three installments will have to be paid in the next nine months. If the payment is less than the required amount, the trader will be given a proportional benefit,” Pawar said.
He said the amnesty scheme will be implemented entirely online and in a transparent manner. “The scheme will play a vital role in the revival of industry and trade affected by the Covid-19 crisis and will get a good response from industry and the trade sector,” he added.
