The Maharashtra Settlement of Arrears of Tax, Interest ... · The Maharashtra Settlement of Arrears...
Transcript of The Maharashtra Settlement of Arrears of Tax, Interest ... · The Maharashtra Settlement of Arrears...
Appasaheb Gorde,
Deputy Commissioner,
(Act & Rule).
The Maharashtra Settlement of Arrears of Tax,
Interest, Penalty or Late Fee Ordinance, 2019
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Why Amnesty Scheme.?
Workload of authorities
After GST introduction, work
load on the officers has
increased substantially.
However, intention is to
focus on GST
Blockage of funds
Substantial amount is
blocked due to prolonged
litigations.
Approx. __ stuck in
litigations
Revenue to Government
Instant one time revenue for
the government and a clean
slate.
Focus to be shifted on
matters under GST
Numerous pending cases
Even after introduction of
GST, assesse’ s left with
earlier disputes
Win-win Situation
Safeguarding of the revenue
for undisputed tax and
Incentive to taxpayer on
disputed tax
Hardship on genuine
taxpayers ?
Supreme court held that
Intention of such amnesty
scheme is to secure
governments revenue
The Maharashtra Settlement of
Arrears of Tax, Interest, Penalty
or Late Fee Ordinance, 2019
(Mah. Ord. No. V of 2019) dated
the 6th March 2019.
Order issued to notify the Forms
to be used under the Ordinance
Trade Circular 9T of 2019 dated
8th March 2019.
Internal Circular 10A of 2019
dated 3rd April 2019 with
Annexures and Statements.
Notification to notify transactions that
may constitute any issue under
section 19(2) of the Ordinance
User Manual for
•Preparation and uploading of application for
Settlement
•Creation of User profile by the dealer who has
never obtained registration and dealers whose
registration certificate is cancelled.
•E-payment of Requisite amount under
Settlement.
Basic material on Settlement
Ordinance
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Maharashtra Value Added
Act, 2002* Central Sales Tax Act,
1956 * Profession Tax
Act, 1975
Mah. Entry Tax on Motor
Vehicles Act, 1987*
Mah. Entry Tax on Other
Notified Goods Act, 2002
*
Mah. Tax on Luxuries Act,
1987 *
Mah. Purchase Tax on
Sugarcane Act, 1962 *
Bombay Sales of Motor
Spirit Taxation Act,
1958*
Bombay Sales Tax Act,
1959*
Mah. Transfer of Right to
Use any Goods Act,
1985*
Mah. Works Contract
Act, 1989*
*Repealed*Partly subsumed
(Except 6 Goods)
ACT(S) UNDER WHICH THE ARREARS
CAN BE SETTLED
(Referred under the Ordinance as Relevant Act)
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ACHIVEMENT UNDER AMENSTY AND SETTLEMENT ACT
COMPARATIVE STATEMENT
Sr. No.
ParticularsAmnesty Scheme-
1995
Amnesty Scheme-
1999
Amnesty Scheme-
2004
Settlement Act-2016
Proposed Settlement
1
Arrears at the beginning of the Scheme/Act (Fig. In Cr.)
1946 2339 4,853 86,450 83,701
2No. of cases involved (Fig. in No.)
64,957 82,236 1,78,299 4,87,211 3,73,820
3No. of Applications received.(Fig. in No.)
52168 50874 61,225 41,559
4Arrears Settled (Fig. In Cr.)
266.54 281.46 358.46 4,000
5 Tax paid (Fig. In Cr.) 115.41
82.2 246
1534.89
6Penalty interest paid (Fig. In Cr.)
30.19 418.45
7Total Amount paid (Fig. In Cr.)
145.6 82.2 275.56 1953.34
8Percentage to the total Arrears
7.48 3.51 5.68 2.26
8Expected Collection (Fig. In Cr.)
200 150 350 491.28
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PENDING RECOVERY AS ON NOVEMBER-2018PARTICULARS B.S.T. V.A.T. GST TOTAL
1 Available for Recovery 1063.29 7926.38 21.75 9011.42
2 Not Available for Recovery 8620.08 89968.28 88.06 98676.42
Total Recovery 9683.37 97894.67 109.80 107687.84
Bifurcation of Not Available Recovery
A Stay in Appeals
1: Department Authority 2754.30 43921.50 0.01 46675.81
2: Tribunal 1410.95 19430.21 0.00 20841.16
3: H.C.,S.C. 715.04 4689.68 0.00 5404.72
4: Section 33(4) ( C ) 44.55 69.18 0.00 113.73
5: Government 0.28 68.30 0.00 68.58
6:CST 0.00 0.00 0.00 0.00
TOTAL - A 4925.12 68178.87 0.01 73104.00
B Government Agencies
1: Official liquidator 629.99 3533.32 0.00 4163.31
2: R.R.C. 422.98 1661.23 0.00 2084.21
3: B.I.F.R. 639.82 1708.78 4.53 2353.13
Who is Eligible to make application
the tax payer whose registration
is continued after 1st July 2017;
under the Relevant Act was valid at any
time on or before the 30th June 2017.
is cancelled at any time on or before
the 6th March 2019.
Tax payer who has never
obtained registration under
any of the Relevant Act (Un-
registered tax payer).
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Sr.
No.Particulars First Phase Second Phase
(1) Time limit for payment
of the requisite amount.
From the 1st April 2019
to 30th June 2019.
From the 1st July 2019
to 31st July 2019.
(2) Duration for submission
of application.
From the 1st April 2019
to 30th June 2019.
From the 1st July 2019
to 31st July 2019.
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Sr. No Particular s Annexure-A & B
(1) Phase(s) FIRST PHASE
(2) Duration of the Phase 1st April 2019 to 30th June 2019
(3) Period of the Scheme Upto 31st March
2010
1st April 2010 to
30th June 2017
(4) Payment and waiver Amount to be paid
Amount to be
waived
Amount to be paid
Amount to be
waived
(5) Un-disputed tax amount 100% 0% 100% 0%
(6) Disputed tax amount50% 50% 70% 30%
(7) Amount of interest payable as per any
statutory order or returns or revised returns 10% 90% 20% 80%(8) Outstanding penalty amount as per any
statutory order 5% 95% 10% 90%(9) Amount of Post Assessment Interest or
Penalty or both leviable but not levied upto
the date of application by the dealer under
the Relevant Act
0% 100% 0% 100%
(10) Late fee payable in respect of returns filed
during the period commencing from 1st
April 2019 to 31st July 20190% 100% 0% 100%
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Sr.
NoParticulars Annexure-A & B
(1) Phase(s) SECOND PHASE(2) Duration of the Phase 1st July 2019 to 31st July 2019(3) Period of the Scheme
Upto 31st March 20101st April 2010 to 30th
June 2017
(4) Payment and waiver Amount
to be paid
Amount to
be waived
Amount to
be paid
Amount to
be waived
(5) Un-disputed tax amount 100% 0% 100% 0%
(6) Disputed tax amount 60% 40% 80% 20%(7) Amount of interest payable as per any
statutory order or returns or revised returns20% 80% 30% 70%
(8) Outstanding penalty amount as per any
statutory order10% 90% 20% 80%
(9) Amount of Post Assessment Interest or Penalty
or both leviable but not levied upto the date
of application by the dealer under the Relevant
Act
0% 100%0% 100%
(10) Late fee payable in respect of returns filed
during the period commencing from 1st April
2019 to 31st July 20190% 100% 0% 100%
Arrears of tax, interest, penalty or late fee eligible for
Settlement:
payable by the assessee as per any statutory order under
the Relevant Act
admitted in the return/revised return and which has remained un-paid
wholly or partly (Short filing amount).
determined and recommend to be payable by the auditor, in the
audit report either wholly or partly
in respect of which notice has been issued in relation to any proceeding
determined to be payable by assessee where no notice in
relation to any proceeding is issued.
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Assessment order;
Rectification Order;
Revision Order/ Review Order
Order Passed in First appeal
Order Passed in Second appeal
Reference
Writ Petition, Special Leave Petition9-May-19e- Governance_Vision 16
Statutory Orders under Relevant Act
eligible for Settlement
Sr. No. Form No. Purpose of Form
(1) Form-I Application for settlement of arrears of tax, interest, penalty or late
fee payable as per the Statutory order.
(2) Form-IA Application for settlement of arrears other than the Statutory orders
like return/revised return dues, dues as per recommendations in
audit report or self-assessed dues etc.
(3) From-II Application for withdrawal of appeal.
(4) Form-III Notice of Defect in respect of application for settlement of arrears.
(5) Form-IV Order of Settlement or Order of rejection.
(6) Form-IVA Order of Settlement or Order of rejection.
(8) Form-V Notice for Rectification of Mistakes to be issued by the Nodal
Officer.
(9) Form-VI Application for Rectification of Mistakes to be submitted by the
applicant.
(10) Form-VII Notice for review.
Forms that are used for Settlement
notified under section 19(2)
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•The said statutory order shall be for any period which ends on or
before the 30th June 2017.
•The statutory order passed any time after 15th July 2019 is not
eligible for Settlement.
Arrears of tax, interest, penalty or late fee as per Statutory order:
•The tax, interest, late fee admitted in the return/revised but which
has remained un-paid.
•The late fee waiver is available for the returns that pertains to the
period ending on the 30th June 2017 and those are filed during the
period 1st April 2019 to 31st July 2019 (Please refer Annexure-A
and B)
Arrears of tax, interest or late fee as per Return or the revised return:
Key Terms used in the Ordinance
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“arrears of tax, interest, penalty or late fee” [see
section 2(1)(c)]:
•Recommendations made by the Auditor in respect of tax, interest or late
fee:
•are accepted by the dealer then such amount is treated as the un-
disputed tax and no waiver is available under the Ordinance.
•are NOT accepted or are PARTLY accepted then to the extent of such
non-acceptance, such amount of tax, interest or late fee would be
disputed and the extent of the waiver shall be as per section 10 read with
section 4 and Annexure-A and B
Key Terms used in the Ordinance
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“arrears of tax, interest, penalty or late fee”
[see section 2(1)(c)]:
• Where notice for assessment is issued but assessment is pending:
•The amount of the risk towards the tax is intimated
either through notice in F-604 or otherwise.
•The tax, interest or penalty communicated to the
dealer and as is acceptable to him may be settled after
payment of the requisite amount payable under the
Ordinance.
Key Terms used in the Ordinance
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“arrears of tax, interest, penalty or late fee” [see
section 2(1)(c)]:
•Where NO notice for assessment is issued but
assessment is pending:
•The amount of the tax and interest as self assessed
by the dealer may be settled after payment of the
requisite amount payable under the Ordinance.
•The assessee subject to the conditions given in the
Ordinance may settle the said amount.
Key Terms used in the Ordinance
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“requisite amount” [see section 2(1)(l)]:
•An amount determined in terms of section 10
depending upon the Phases under the Ordinance
and period for which settlement is desired. This
amount is aggregate of,-
•Un-disputed amount of tax paid in full and
•Such percentage of the disputed tax, interest,
penalty or late fee as given in Annexure-A or
Annexure-B.
Key Terms used in the Ordinance
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“return dues [see section 2(1)(m)]:
• The amount of tax, interest or late fee admitted in the returns or
the revised returns under the Relevant Act that are filed on or
before the 15th July 2019 and such returns pertains to the period
ending on or before the 30th June 2017 and such amount is
remained unpaid partly or fully.
• Subject to the conditions given in section 7 and 8 of the Ordinance
the payment outstanding as on 1st April 2019 (in case returns are
filed upto 31st March 2019) the assessee may settle such dues with
the payment of the requisite amount.
• .
Key Terms used in the Ordinance
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•The said statutory order shall be for any period
which ends on or before the 30th June 2017.
•The statutory order passed any time after 15th July
2019 is not eligible for Settlement.
Specified period [section 2(1)(n):
•Any order that is passed under the Relevant Act
raising demand of tax, interest, penalty or late fee.
Statutory order [Section 2(1)(o):
Key Terms used in the Ordinance
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Key Terms used in the Ordinance
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Un-disputed tax means [Section 2(1)(q)”
• No waiver is available in respect of the un-disputed tax. The
following taxes are treated as un-disputed tax:
• The taxes that are collected separately
• The deductions allowed by the authorities in the statutory order for the taxes
collected separately.
• The taxes shown payable in the return or the revised return under the Relevant
Act
• An amount claimed by the dealer as deductions or allowed by the designated
authority as per rule 57 of the MVAT Rules or under similar rules under other
Relevant Act
• An amount forfeited under the statutory order or excess tax collection shown in
the return, revised return or, Audit report submitted under the Relevant Act.
Key Terms used in the Ordinance
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Un-disputed tax means [Section 2(1)(q):
• Any amount of tax, interest or late fee determinedand recommended to be payable by the auditor, inthe audit report and accepted by the assesseeeither wholly or partly; or
• the tax deducted at source (TDS) by the employerunder the Relevant Act; or
• the tax collection made under section 31A of theValue Added Tax Act.
• Disputed tax: Disputed tax means the tax otherthan the un-disputed tax.
Examples
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Period 2015-16 Order of Assessment passed on 20th April 2018
(1) Computation of settlement benefits [see section 5(a) and 5(b)]
Particulars Tax Interest Penalty Total
(3) Demand details 5,00,000 2,50,000 75,000 8,25,000
(4) Bifurcation of tax as disputed and und-disputed Ratio
(5) Un-disputed 3,00,000 60:40
(6) Disputed 2,00,000
(7) Amount paid 2,00,000
(8) Balance Outstanding as on 1.4.2019 Requisite amount
(8) Particulars Amount Outstanding
(a) Un-disputed 1,80,000 100% 1,80,000
(b)disputed 1,20,000 70% 84,000
Requisite amount for tax 2,64,000
Interest 2,50,000 20% 50,000
Penalty 75,000 10% 7,500
Total Requisite amount Rs.3,21,500/-
Examples of un-disputed tax [Period 2015-16]
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Sr. No.
ParticularsAs claimed by the Dealer in return
As worked by the Assessing authority
(1) GTO of Sales 1,00,000 1,60,000
(2) Tax rate 5% 12.5%
(3) Tax Collection 5,000 5,000
(4) Taxes payable 5,000 20,625
(5) Set-off 1,000 500
(6) Balance taxes payable 4,000 20,125
(7) Taxes paid WR 0 0
(8) Interest u/s 30(3) 0 5000
(9) Penalty 0 10,000
(10) Total amount payable 4000 35125
(11) Amount paid as on 1.5.2018 16500
(12) Appropriation made as per section 40 of MVAT Act
Penalty 10000
(a) Interest 5000
(b) Balance Outstanding Tax 18,625
Examples of un-disputed tax [Period 2016-17]
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Sr. No.
ParticularsAs claimed by the Dealer in return
As worked by the Assessing authority
(1) GTO of Sales 1,00,000 1,60,000
(2) Tax rate 5% 12.5%
(3) Tax Collection 5,000 5,000
(4) Taxes payable 5,000 20,625
(5) Set-off 1,000 500
(6) Balance taxes payable 4,000 20,125
(8) Interest u/s 30(3) 0 5000
(9) Penalty 0 10,000
(10) Total amount payable 4000 35125
(11) Amount paid as on 1.5.2018 0
(a) Computation of Requisite Amount Requisite Amount
(b) Un-disputed tax amount (100%) 4000 4000
(c) Disputed tax amount (70%) 16125 11288
(d) Interest (20%) 5000 1000
(e) Penalty (10%) 10000 1000 17,288
Examples of un-disputed tax [Period 2016-17]
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Sr. No.
ParticularsAs claimed by the Dealer in return
As worked by the Assessing authority
(1) GTO of Sales 1,00,000 1,60,000
(2) Tax rate 5% 12.5%
(3) Tax Collection 5,000 20,625
(4) Taxes payable 5,000 20,625
(5) Set-off 1,000 500
(6) Balance taxes payable 4,000 20,125
(8) Interest u/s 30(3) 0 5000
(9) Penalty 0 10,000
(10) Total amount payable 4000 35125
(11) Amount paid as on 1.5.2018 0
(a) Computation of Requisite Amount Requisite Amount
(b) Un-disputed tax amount (100%) 20,125 20,125
(c) Disputed tax amount (70%) 0 0
(d) Interest (20%) 5000 1000
(e) Penalty (10%) 10000 1000 22,125
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Sr. No.
ParticularsAs claimed by the Dealer in return
As worked by the Assessing authority
Deductions claimed by the dealer or the deductions allowed by the authority u/r 57 (Period 2014-15)
(1) GTO of Sales 5,10,000 5,10,000
(2) Tax rate 5% 12.5%
(3) Deduction claimed under 57(1) 24,286 56,667
(4) Taxes payable 24,286 56,667
(5) Set-off 9,000 7,500
(6) Balance taxes payable 15,286 49,167
(8) Taxes paid with Return 15,286 15,286
(9) Balance Taxes Payable 0 33,881
(10) Interest u/s 30(3) 0 8,900
(11) Penalty 0 16,500
(12) Total amount payable 0 59,281
(a) Computation of Requisite Amount Requisite Amount
(b) Un-disputed tax amount (100%) 32,381 32,381
(c) Disputed tax amount (70%) 1,500 1,050
(d) Interest (20%) 8,900 1,780
(e) Penalty (10%) 16,500 1,650 36,867
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Sr. No.
ParticularsAs claimed by the Dealer in return
As worked by the Assessing authority
Excess tax collection forfeited
(1) GTO of Sales 10,50,000 10,50,000
(2) Tax rate 5% 5%
(3) Tax Collection 68,500 52,500
(4) Taxes payable 52,500 52,500
(5) Set-off 19,000 19,000
(6) Taxes paid with Return 33,500 33,500
(8) Balance taxes payable 0 0
(9) Excess Tax Collection forfeited 0 16,000
(10) Interest u/s 30(2) 0 8,900
(11) Penalty 0 6,500
(12) Total amount payable 0 31,400
(a) Computation of Requisite Amount Requisite Amount
(b) Un-disputed tax amount (100%) 16,000 16,000
(c) Disputed tax amount (70%) 0 0
(d) Interest (20%) 8,900 1,780
(e) Penalty (10%) 6,500 650 18,430
Examples of un-disputed tax
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Return period------April-2018 to June-2018
Sr. No.
ParticularsAs claimed by the Dealer in return
(1) Computation of settlement benefits [see section 5(a) and 5(b)]
(2) Amount admitted in the return Tax Interest Late fee Total
(3) 1,00,000 25,000 5,000 1,30,000
(4) Less: Amount paid till 31.12.18 25,000 10,000 1,000 36,000
(6) Outstanding amount as on01.01.2019
75,000 15,000 4,000 94,000
(8) Determination of Outstanding as on 1.4.2019
64,000 25,000 5,000 94,000
(9) Re-appropriation of amount paid till 31st March 2019
(10) Tax (Un-disputed) 64,000
(11) Interest (20%) 5,000
(12) Late fee (100%) 5,000
Total of Requisite amount 74,000 Waiver 20,000
Example of disputed tax
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Assessment Period-2014-15 (First Phase)
(1) Computation of settlement benefits [see section 5(a) and 5(b)]
(2) Demand raised in the CST AO Tax Interest Penalty Total
(3) 10,00,000 4,00,000 5,00,000 19,00,000
(4) demand of tax due to disallowance Highseas Export Tax Diff. Forms
(6) Outstanding amount as on 01.01.19 2,00,000 1,50,000 3,00,000 3,50,000
(7) Part of Rs. 4.15 Lakh payment made 20,000 15,000 30,000 3,50,000
(8) Outstanding dues as on 01.04 1,80,000 1,35,000 2,70,000 0
(9) Issue based withdrawal Appeal to be withd In App. Bal. Arrears
(10) For Highseas 1,80,000 0 1,80,000
(11) Disallowance of Export 1,35,000 1,35,000
(12) Difference in Tax Rate 2,70,000 0 2,70,000
(13) C Forms 3,50,000 0 0
Total of Requisite Tax amount (70%) 9,35,000 0 5,85,000
Tax(70%) 4,09,500
Interest (20%) 80,000
penalty (10%) 50,000 5,39,500
Any payment made in respect of any statutory order either inappeal or otherwise on or before the 31st March 2019 shall bereduced from the demand so raised.
The appropriation of amount paid on or before the 31st March2019 shall be made in the following order:◦ Tax ,
◦ Interest,
◦ Penalty
◦ Late fee
After adjustment as above, the amount remaining outstanding shallonly be considered as “arrears” eligible for Settlement.
After reducing the amount as above, apply the ratio of the un-disputed tax and disputed tax to the balance amount of arrears oftax
This appropriation shall also be available for the dues as per returnor the revised return.
Adjustment of payments made before
the 31st March 2019. (Section 5)
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For seeking benefits there is NO need to file appeal.
However, in case the appeal is filed and the applicant desires to opt for
Settlement then the appeal shall be withdrawn un-conditionally.
The applicant shall make a separate application for each statutory
order/return dues, Form-704 dues etc. under each of the Relevant Act.
However, in case the settlement is being desired against the return dues
for the multiple period in a Financial year then single application can be
made.
Application for the settlement of Arrears
◦ on or after 1st April 2019 but on or before 30th June 2019 if applicant desires to
take benefit in First Phase and
◦ on or after 1st July 2019 but on or before 31st July 2019 if the applicant desires
to take benefit in the Second Phase.
Eligibility and conditions for settlement
(Section 6 and 7 )
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Every application shall be accompanied by the proof of payment of
requisite amount & other documents mentioned in Application Form.
No arrears of tax, interest, penalty or late fee shall be settled if statutory
orders are made or returns are filed after 15-07-2019 EXCEPT WHERE
THE RETURNS FOR PERIOD UPTO 30TH June 2017 is filed during the
period 1st April 2019 to the 31st July 2019.
The applicant is eligible to opt for the Settlement even though the
benefits under the earlier “Amnesty Scheme” is taken including that of
Settlement Act, 2016.
No Application shall be allowed in case the revised return filed on or
after the 6th March 2019 till 15th July 2019 which results into reduction in
the tax, interest or both except when such reduction is due to the
payment in cash.
Eligibility and conditions for settlement
(Section 6 and 7 )
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Settlement in respect of Remand back cases:
◦ Settlement in respect of cases remanded back by the Tribunal may
be settled.
◦ In case the order giving effect to the directions given by the
applicant [under section 23(8)] is not passed then the settlement
may be done on the basis of the computation done by the
applicant.
◦ To reduce disputes it will be better all such orders are passed at
earliest i.e. well before the 15th July 2019.
◦ The cases remanded for fresh hearing by the First appellate
authority may also be settled on the basis of the computation done
by the applicant.
.
Eligibility and conditions for settlement
(Section 6 and 7 )
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Corrective actions in the cases where Audit objection has been
raised.
◦ The cases where the Audit objections are raised either by STRA or
Internal Audit and that are pending in the Appeal then all such
cases should be disposed of at earliest and should not be allowed
to be withdrawn unless corrective action is under taken.
◦ In other cases that are pending for corrective actions such as
review, revision etc, should be disposed at early. This will help the
applicant to avail the benefits under the Ordinance.
Eligibility and conditions for settlement
(Section 6 and 7 )
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Conditional Settlement in the cases where tax payer has taken
credit under GST:
◦ This provision aims to prevent undue advantage to the tax payer who has taken
the credit under GST,
◦ The tax payer desires to settle the arrears, if any, in respect of credit of VAT or
entry tax for period ending June-2017 taken to the GST only on reversal of said
credit set-off that are pending for corrective actions such as review, revision etc,
should be disposed at early. This will help the applicant to avail the benefits
under the Ordinance.
Eligibility and conditions for settlement
(Section 6 and 7 )
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In case the appeal is filed the appeal and the appellant desires to settle the
arrears either wholly or partly then un-conditional withdrawal of appeal is
mandatory.
The appellant is allowed to withdraw appeal either wholly or partly.
The application to be made in Form-II to the respective appellate authority
including the Tribunal or the Court.
The appellate authorities to acknowledge the said application and pass the
withdrawal order to the extent the appellant desires to withdraw appeal i.e.
either wholly or partly.
.
Withdrawal of appeal
(Section 8 )
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Passing of appeal withdrawal order is must.
Once the appeal withdrawal order is passed the copies of such orders is
to be given to the appellant as well as concerned Nodal Officer The
Acknowledgement is to be treated as sufficient proof towards the
withdrawal of appeal.
The applicant to clearly mention the issues in respect of which he/she
desires to withdraw the appeal.
The applicant to mention the amount of tax, interest or penalty in respect
of which appeal is withdrawn and the tax, interest or penalty for which
appeal is continued.
.
Withdrawal of appeal
(Section 8 )
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The notification is issued by the Commissioner on 7th March 2019. The
following transaction to constitute an issue:◦ certificates are defective, partly received or partly not received and additional tax
liability is estimated therefore or Statutory order is passed disallowing the claim in that
behalf;
◦ Mis-match of set-off where gross purchases claimed by the buyer in Annexure-J2 of
Audit Report or in return and gross sales declared by the supplier in Annexure-J1 of
Audit Report or in returns does not match.
Where the set-off as provided under the Relevant Act is disallowed due to
◦ purchases made from non-genuine dealer;
◦ purchases made from the dealer whose registration certificate cancelled at the time of such
purchases;
◦ purchases made from supplier who has not filed returns;
◦ purchases made from supplier of goods who has paid lump-sum payment in lieu of tax i.e.
composition dealer under Value Added Tax Act;
Transactions that may constitute an issue:
(Section 9 )
9-May-19e- Governance_Vision 43
The notification is issued by the Commissioner on 7th March 2019. The
following transaction to constitute an issue:◦ Where in the opinion of the dealer, assessing authority or the appellate authority has
committed an error in computation of the set-off or retention of set-off or denial of set-
off as per any rule made in this behalf under the Value Added Tax Rules for the
contingencies provided therein or any of the provision of the Relevant Act;
◦ Where assessing authority or the appellate authority has disallowed any deduction
claimed by the applicant or has applied the wrong rate of tax in respect of any
transaction of sales or certain income receipts are treated as taxable sales in their
order.
the tax payer is not allowed to take the benefits against interest,penalty or late fee, alone treating them an issue unless theoutstanding associated tax together with interest, penalty or the
late fee is also considered as an issue.
Transactions that may constitute an issue:
(Section 9 )
9-May-19e- Governance_Vision 44
Un-disputed tax has to be paid in full. No waiver is available towards un-
disputed tax.
The extent of the requisite amount and the waiver in respect of disputed
tax, interest, penalty or late fee is to be calculated considering the period,
Phase of Settlement.
It is important to note that to get the benefits under the First Phase the
applicant need to make the payment as well submission of application in
First Phase only. In case the payment is made during the First Phase but
the application is submitted during Second Phase, then such applicant
shall be entitled to get benefit available for the Second Phase.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
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Similarly, if applicant submits the application during the First Phase and makes
short payment during First Phase and the balance payment during Second
Phase, the applicant will be entitled to get benefit available for Second Phase in
respect of the amount paid during Second Phase.
Where payment made by the applicant is less than the requisite amount in
accordance with the provisions of the Ordinance, the proportionate amount of
waiver will be admissible in proportion to the requisite amount paid by the
applicant.
In the case of short payment of requisite amount, requisite amount paid shall
first be adjusted towards the un-disputed tax in full as NO waiver in respect of
un-disputed tax is allowed and remaining amount shall thereafter be adjusted
proportionately towards the disputed tax, interest, penalty or late fee.
:
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
9-May-19e- Governance_Vision 46
Determination of requisite amount under Entry Tax Act:
◦ The requisite amount on account of entry tax is linked to the set-off
reduced or denied under rule 53 or rule 54 of the MVAT Rules.
◦ Therefore, the requisite amount shall be equal to the amount of set-off
reduced or denied under rule 53 or 54 respectively, of the MVAT Rules and
the amount of interest or penalty as determined considering the Phase and
period for which settlement is sought.
◦ The amount of entry tax paid if any, on or before 31st March 2019 on any
account is not be considered as requisite amount.
◦ The requisite amount for the purpose of entry tax is to be determined in
terms of section 10(2) of the Settlement Ordinance.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
9-May-19e- Governance_Vision 47
Determination of requisite amount under Entry Tax Act:
.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
9-May-19e- Governance_Vision 48
Sr. No. Factors considered Particulars
(1) The period of Assessment. 2005-06
(2) Value of the goods imported. Rs. 8,00,000
(3) Rate of tax under Entry Tax Act. 12.5%
(4) Tax liability as per AO. Rs. 1,00,000
(5) Date of payment of requisite amount. 3rd May, 2019
(6) Date of submission of application under Ordinance. 5th May 2019
(7) Phase under the Ordinance. First Phase
(8) Set-off admissible under MVAT Rules as per rule 52. Rs. 1,00,000
(9)
*Goods imported are used as a fuel, hence the reduction in set-off u/r 53(1) or
53(1A) 4% of the purchase price of the corresponding goods i.e. of Rs.
8,00,000/-.
Rs. 32,000
Determination of requisite amount under Entry Tax Act:
.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
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Sr. No. ParticularsLiability as per
A.O.
Requisite Amount to be paidAmount to be
waived
% Amount
(1) Entry Tax @ 12.5% 1,00,000 4* 32,000 68,000
(2) Interest determined 35,000 10 3,500 31,500
(3) Penalty imposed 50,000 5 2,500 47,500
(4) Total 1,85,000 38,000 1,47,000
Determination of proportionate benefits in case the requisite amount
is short paid: [Rs. 1,31,000-1,25,000=6,000]
[Rs. 1,25,000-50,000=75,000]. [Rs.75,000+6,000=81,000]
75,000 X 100/81,000=92.59%
.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
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Sr. No. ParticularsArrears as on 1st
April 2019
Requisite amount to be paid
(Annex.-B)
First Phase Amount
paid*Amount
short paid
% Amount
(a) (b) (c) (d) (e) (f)(g)
(1) Amount of un-disputed tax 50000 100 50000 50,000 0
(2) Payment towards disputed tax 100000 70 70,000 64,815 5,185
(3) Interest determined 30000 20 6000 5,556 444
(4) Penalty payable 50000 10 5000 4,630 370
(5) Total 2,30,000 1,31,000 1,25,000 6,000
Determination of proportionate benefits in case the requisite amount
is short paid: (Period: 2014-15)
.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
9-May-19e- Governance_Vision 51
Sr. No. Particulars
Basis for
calculation of
requisite
amount
Requisite amount to be paid
(Annex.-B)
First PhaseAmt. to be
waived
Amt. to be
considered in 2nd
Phase
% Amount
(a) (b) (c) (d) (e) (f) (g)
(1)Amount of un-
disputed tax50,000 0 50,000 0 0
(2)Payment towards
disputed tax92,593 70 64,815 27,778 7,407
(3) Interest determined 27,778 20 5,556 22,222 2,222
(4) Penalty payable (10%) 46,296 10 4,629 41,667 3,704
(5) Total 2,16,667 1,25,000 91,667 13,333
The amount of Rs.13,333/- remained outstanding at the end of the First
phase may be settled under Second Phase as given below:◦ Tax--------------------7,407------------5,926
◦ Interest--------------2,222----------- 667
◦ Penalty--------------3,704----------- 741
The proportionate benefits shall be available as per Second Phase in
case the requisite amount short paid is paid in Second Phase.
No benefit shall be available in respect of amount that is paid after the
31st July 2019.
The application shall not be rejected merely on the ground that the
requisite amount is short paid.
Determination of requisite amount and extent of the waiver:
(Section 10 and Annexure-A & B)
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Application for the settlement of Arrears in Form I or Form IA and shall be submitelectronically at https://www.mahagst.gov.in.
A separate application for each class of arrears and for each period under the each of
the Relevant Act need to be submitted.
The documents to be attached with Form-I or Form-IA
◦ Proof of payment of the requisite amount as determined;
◦ Copy of statutory order or return or revised return or audit report recommendations or the notice
in relation to the initiation of any proceedings against which settlement is sought for;
◦ Original order of withdrawal of Appeal or in case the said order is not received then
acknowledgement of request letter submitted for withdrawal of Appeal.(Form-I )
◦ Copy of self calculation of tax, interest or late fee liability where no notice is issued and in
respect of which settlement is sought for;
◦ Copies of Chalans of payment of amount paid after the date of order or against the outstanding
dues in other cases till 31st March 2019.
Verification of application and passing order of
settlement
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The designated authority shall verify the correctness and completeness of the application
as also the particulars submitted with application.
Issuance of Defect Notice:
In case it is noticed that the application in Form-I or Form-II is incorrect or incomplete or
requisite amount paid is deficient, then the designated authority shall issue defect notice
Online Form III within 15 days from the date of receipt of application and intimate the
defects.
Only one defect notice is to be issued.
The applicant to comply with the defect so communicated within 15 days of the receipt of
defect notice.
The applicant shall correct the defects and make payment, if short paid. The compliance
is proposed to be online.
The payment made after 31st July 2019 is not be considered towards the requisite
amount..
Issuance of Defect notice and its compliance
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If the designated authority is satisfied regarding correctness and
completeness of application, he will compute requisite amount and extent
of waiver considering Phase in which requisite amount is paid.
If the designated authority is satisfied that the applicant has paid the
requisite amount, he will pass an order in Form IV and provide copy of
the same to applicant.
Where the applicant fails to correct defects communicated, the
designated authority may after giving opportunity of being heard and
recording reasons in writing pass appropriate order giving proportionate
benefit as may be available
However, no application shall be rejected merely on the ground of less
payment of requisite amount.
Passing of Order of Settlement (Section-12)
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In case the Settlement application in Form-I or Form-IA is not in
accordance with the provisions of Ordinance, the designated authority
after giving an opportunity of being heard to applicant, issue order
rejecting application Form IV A.
Ex. In case the applicant has not made payment of requisite amount at
all.
No application shall be rejected merely on the ground of less payment of
requisite amount or documents are partly uploaded or no documents are
uploaded.
Rejection of Settlement application (Section-12)
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Rectification of Order:
The designated authority may, on his own motion or on
application of the applicant.
Nodal officer to issue notice for rectification in Form-V
The applicant to submit application for rectification in Form VI.
Rectification of any error apparent from the record to be
rectified within six months from the date of receipt of the order
of the Settlement by the applicant.
No order adversely affecting the applicant shall be passed
without giving a reasonable opportunity of being heard.
Rectification of order of Settlement
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Appeal (Section-13):
In case the applicant is not satisfied with the order of Settlement then the
applicant may prefer an appeal.
The appellate authorities are as under:
◦ Deputy Commissioner of Sales Tax in case the Order is passed by the
A.C. or the STO.
◦ Joint Commissioner of Sales tax in case the order is passed by the
Deputy Commissioner.
The appeal is to be filed with the jurisdictional D.C. or the J.C. and not to
the appellate authority i.e. D. C. (App.) or J. C. (App.)
Any order passed under this Ordinance is appealable.
Appeal against the order of Settlement
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Powers of the Authorities (Section 14)
Appellate authority do not have any jurisdiction to the extent of the application for
settlement is filed and appeal is allowed to be withdrawn.
The assessing authority, appellate authority including Tribunal, revisional authority or
reviewing authority shall proceed to decide such assessment, appeal, revision or review
in accordance with the Relevant Act –
◦ to the extent of the issues for which no application is made; or
◦ in case an order rejecting the application is passed and against which no appeal is
filed.
Powers of the Authorities
9-May-19e- Governance_Vision 59
Effects of Settlement Order
The order of Settlement shall be discharge the liability of the applicant to
the extent of the amount of waiver specified in the Order of Settlement.
An order issued shall be conclusive as to the settlement of arrears
covered under that order and the matter covered by such order shall not
be re-opened in any proceeding or review or revision or any other
proceedings under the Relevant Act.
Subject to the provisions of section 16 and 17 order passed shall be final.
Bar of re-opening of the settled cases.
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Review of Order
The Commissioner can call for the record of order passed by the
designated authority, on his own motion, within 12 months from the date
of service of the order.
If the Commissioner notice an error in such order prejudicial to the
interest of revenue, may serve on the applicant a notice Form VII and
pass an order to the best of his judgment, where necessary.
.
Review of order of Settlement
9-May-19e- Governance_Vision 61
Revocation of order of Settlement:
If an order is revoked, assessment, revision, review or appeal under
Relevant Act covered by such order shall, notwithstanding anything
contained, stand revived or reinstated immediately upon revocation.
However, an appeal shall be re-instated on application made in this behalf to
the appellate authority within 60 days from the date of communication of the
order of revocation.
In the case of revocation of order, notwithstanding the period of limitation
provided under the Relevant Act, such assessment, revision, review or
appeal shall be made within two years from the date of passing revocation
order.
The amount paid by the applicant under the Ordinance shall be treated to
have been paid under the Relevant Act.
Revocation of order of Settlement
9-May-19e- Governance_Vision 62
Revocation of order of Settlement:
If an order is revoked, assessment, revision, review or appeal under
Relevant Act covered by such order shall, notwithstanding anything
contained, stand revived or reinstated immediately upon revocation.
However, an appeal shall be re-instated on application made in this behalf to
the appellate authority within 60 days from the date of communication of the
order of revocation.
In the case of revocation of order, notwithstanding the period of limitation
provided under the Relevant Act, such assessment, revision, review or
appeal shall be made within two years from the date of passing revocation
order.
The amount paid by the applicant under the Ordinance shall be treated to
have been paid under the Relevant Act.
Revocation of order of Settlement
9-May-19e- Governance_Vision 63
◦ As per the provisions of the Settlement Ordinance NO refund is
available to the applicant on any grounds of the amount paid under the
Ordinance.
.
No refund under the amount paid under the
Ordinance
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Thank you!
9-May-19e- Governance_Vision 65