Maharashtra Tax Arrears, Interest, Penalty, or Late Fees Settlement Scheme

The Maharashtra Government has introduced various schemes in Budget 2022 to settle old disputes. Among these, the Maharashtra tax arrears, interest, penalty, or late fees settlement scheme 2022, known as the Amnesty Scheme, aims at resolving issues related to tax payments. This scheme is active from April 1st, 2022, to September 30th, 2022.

Synopsis of Maharashtra Budget 2022

The state of Maharashtra presented its budget for the fiscal year 2022-2023 on March 11, 2022, announced by the state finance minister, Shri Ajit Pawar Maharashtra. Key highlights include:

The introduction of various schemes to settle old tax disputes.
An amnesty scheme to provide relief to citizens, industries, and businesses.
Provision of Rs 1,55,307 crores for the annual plan, including provisions for GST, VAT, Central Sales Tax, and Professional Tax.
A reduction in the VAT on compressed natural gas (CNG) from 13.5% to 3%, leading to a revenue loss of Rs 800 crore.
Allocation of Rs 1,500 crore for an amnesty scheme under the Stamp Act to address pending penalty debts.

Benefits of Amnesty Scheme

The scheme provides relief to citizens, industries, and businesses by reducing tax burdens.
Industries and the commercial sector can also benefit significantly from this scheme.
A waiver of 80% of arrears is granted with a lump-sum payment of 20% under this plan.
Additional benefits include a 3% stamp duty exemption on gift deeds and a 5% tax exemption on sale deeds, aiding approximately 2.2 lakh merchants.

Applicability of Amnesty Scheme 2022

The scheme applies to taxes levied by the Sales Tax Department before the GST Act's implementation.
It covers all pending dues up to June 30, 2017, i.e., before GST enactment, making it relevant for those with unresolved tax obligations.

Condition to Avail the Benefit of this Scheme

Dealers looking to benefit from this scheme must withdraw their appeals unconditionally. For detailed procedures, you can visit the tax registration process page.

Relief on Sales Tax Arrears

The scheme offers full waiver of arrears for amounts under Rs. 10,000 per year, benefitting small dealers. For arrears up to Rs. 10 lakhs, a 20% lump-sum payment suffices. More extensive cases include:

Pending cases up to March 31, 2005: Dealers must pay 100% of undisputed tax, 30% of disputed tax, 10% interest, and 5% penalty.
Dues from April 1, 2005 - June 30, 2017: Require payment of 50% disputed tax, 15% interest, and 5% penalty. Additional details can be found on the professional tax penalty page.

Duration to Pay the Required Amount

This scheme covers various taxes assessed before the GST Act, active from April 1, 2022, to September 30, 2022. Dealers seeking more information on payment procedures should visit the payment information page.

Tax Concession on Stamp Duty

For the construction sector, the timeframe under Article 5 (g-a) (ii) of the Maharashtra Stamp Act extends from one to three years.
The amnesty scheme for pending penalty dues runs from April 1, 2022, to November 30, 2022.
Stamp duty exemption applies to gold-silver delivery order documents within Maharashtra.
Suggested stamp duty exemption on gift deeds excludes state-controlled organizations and institutions. Learn about stamp duty concessions on the required documents page.

For ongoing compliance, details on registration renewal and maintaining your professional tax number are essential.

Ensure you stay updated on all due dates for comprehensive and timely compliance with Maharashtra's tax regulations.

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Frequently Asked Questions

Common questions about Maharashtra Tax Arrears Settlement Scheme.

The Maharashtra Tax Arrears, Interest, Penalty, or Late Fees Settlement Scheme is an amnesty scheme announced by the Maharashtra government in the Budget 2022. It aims to provide relief to ordinary citizens, industries, and businesses by allowing them to settle their pending tax dues with certain concessions and waivers.

The scheme will be operational from April 1, 2022, to September 30, 2022. Taxpayers can avail the benefits of the scheme by paying the required amount within this period.

The scheme applies to various taxes levied by the Sales Tax Department prior to the implementation of the Goods and Services Tax Act, such as VAT, Central Sales Tax, Professional Tax, and others, for the period ending on June 30, 2017.

If the tax arrears for a small dealer are less than Rs. 10,000 per year, the arrears will be completely waived under this scheme. This will benefit around one lakh small dealers.

Dealers with tax arrears of up to Rs. 10 lakhs or less will be required to pay a lump-sum payment of 20% of the total amount owed. This will benefit around two lakh and twenty thousand mid-size dealers.

For pending cases up to March 31, 2005, dealers with dues above Rs. 10 lakh or those who do not opt for the lump-sum option will have to pay 100% of the undisputed tax, 30% of the disputed tax, 10% of the interest, and 5% of the penalty.

For dues between April 1, 2005, and June 30, 2017, dealers will have to pay 50% of the disputed tax, 15% of the interest, and 5% of the penalty.

To avail the benefit of this scheme, dealers must withdraw their appeals unconditionally.

The scheme offers a 3% stamp duty exemption on gift deeds and a 5% tax exemption on sale deeds. Additionally, the time period provided under article 5 (g-a) (ii) of the Maharashtra Stamp Act has been extended from one year to three years for construction businesses.

An amnesty scheme is proposed from April 1, 2022, to November 30, 2022, for pending penalty dues under the Stamp Act. Additionally, importation of gold-silver delivery order documents into Maharashtra is exempt from stamp duty.