Before the commencement of the GST, Deputy Chief Minister Ajit Pawar announces an amnesty scheme for pending sales tax debts

The state government revealed the details of an amnesty scheme for small-time businesses and industries in Maharashtra that are reeling from the economic havoc caused by Covid-19 just days after announcing an amnesty scheme for pending sales tax arrears before the launch of the GST for small-time businesses and industries in Maharashtra that are reeling from the economic havoc caused by Covid-19.

 

From April 1 through September 30, the 'Maharashtra Settlement of Arrears of Tax, Interest, Penalty, or Late Fee Scheme-2022' will be implemented. Tax arrears up to Rs 10,000 would be completely waived, according to Deputy Chief Minister Ajit Pawar, who highlighted the initiative in his annual budget for 2022-23. This will benefit roughly one lakh small-time enterprises.

 

Businesses will be required to pay an online lump sum of 20% of the arrears up to Rs 10 lakh or less, and the waiver will be issued for the remaining amount. Almost 2.20 lakh enterprises are expected to gain from this. Traders with arrears of up to Rs 10 lakh as of April 1, 2022, have also been offered the option of paying 20% of the total arrears without any non-contested tax, disputed tax or penalty is calculated. If such a single sum payment is made, the remaining 80% will be waived, according to Pawar. He highlighted that merchant who are not qualified for a lump sum payment or who choose not to do so will not be eligible for a tax reduction.

 

According to Pawar, the undisputed tax must be paid in full. However, for the period before March 31, 2005, the challenged tax must be paid in full. He also mentioned that a 10% interest rate and a 5% penalty would have to be paid. Furthermore, from April 1, 2005, to June 30, 2017, the government will waive the remaining arrears after payment of 50% of the disputed amount, 15% of the interest, 5% of the penalty, and 5% of the late charge, Pawar stated.

 

To take advantage of the program, taxpayers must pay the required amount by the deadline. "There is an option to pay the sum in installments for dealers with arrears of more than Rs 50 lakh. There are four portions to the total installment discount. The first amount of 25% must be paid before September 30, 2022, and the remaining three installments must be paid during the next nine months. The dealer will be awarded a proportional benefit if the payment is less than the required amount," Pawar stated.

 

 

Image Courtesy: Twitter @TimesNow