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Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019

Maharashtra State government, vide Trade Circular No 9T of 2019 dated March 8, 2019 has promulgated the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019 with a view to reduce arrears of tax, interest, penalty or late fees under various Acts administered by the Maharashtra Goods and Services Tax (MGSTD). The scheme will be relevant for companies who may be having arrears of penalty and interest under Maharashtra State taxes. It will also apply to a person not registered under the relevant laws and to person who had availed benefit under any of the previous amnesty schemes.

Key features of the scheme are:

  • The scheme is for settlement of arrears of tax, interest, penalty or late fee under the following laws:
  1. Central Sales Tax Act, 1956;
  2. The Bombay Sales of Motor Spirit Taxation Act, 1958;
  3. The Bombay Sales Tax Act, 1959;
  4. The Maharashtra Purchase Tax on Sugarcane Act, 1962;
  5. The Maharashtra State Tax on Profession, Trades, Callings and Employments Act, 1975;
  6. The Maharashtra Sales Tax on the Transfer of Right to use any Goods for any Purpose Act, 1985;
  7. The Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987;
  8. The Maharashtra Tax on Luxuries Act, 1987;
  9. The Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989;
  10. The Maharashtra Tax on Entry of goods into Local Areas Act, 2002; and
  11. Maharashtra Value Added Tax Act, 2002 (MVAT Act).
  • Scheme cover arrears in relation to statutory order, recommendations in audit report, returns/revised returns, notices or self-assessed dues pertaining to the period:
  1. Up to March 31, 2010. Arrears pertaining to this period shall be settled with higher waiver of disputed tax and other dues vis-a-vis the subsequent period
  2. April 1, 2010 to June 30, 2017
  • The scheme will be introduced in two phases:
  1. April 1, 2019 to June 20, 2019 – Settlement during this phase shall be eligible for higher waiver of disputed tax and other dues as compared to subsequent phase
  2. July 1, 2019 to July 31, 2019
  • For filing application under the scheme, appeals pending before various forums including Tribunal or Court is required to be withdrawn unconditionally either wholly or partly.

The Circular specifies the conditions to be satisfied and procedure to be followed for claiming the benefit. The extent to which benefit of waiver is available has also been specified in the annexure appended to the Ordinance.

Copy of the Circular is also attached for your reference.


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