Government of Maharashtra modifies the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019

Jul 30, 2019 | by Avantis RegTech Legal Research Team


The State Government of Maharashtra on July 20, 2019, modifies the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019, to give effect to the announcements made in the Additional Budget Speech for the year 2019-20.

Some of the major modifications are as under:

Ø  Section 2(1)(m): “return dues ” means the amount of tax, interest or late fee, admitted in the return or the revised return filed under the Relevant Act in respect of the specified period but which has remained un-paid either wholly or partly, at any time on or before August 16, 2019;

Ø  Section 2(1)(q) which defines ‘Undisputed tax’: The amount of tax recommended and accepted by the dealer would be treated as undisputed tax. Therefore, the interest and late fee shall not be treated as undisputed tax.

Ø  Section 4: The duration for the payment of requisite amount and the submission of application has two phases:

1)      First Phase will end on July 31, 2019

2)      Second Phase will commence from August 01, 2019 and will end on August 31, 2019

Ø  Extension of dates in respect returns for the specified period:

(a)    Late fee waiver is available in respect of the returns pertaining to the periods ending on or before June 30, 2017 provided that said returns are filed between the periods April 01, 2019 to August 31, 2019.

(b)   There is 100% waiver available.

(c)    The late fee waiver shall not be available in respect of returns pertaining to periods ending on or before June 30, 2017 that are filed before March 06, 2019.

Ø  A Technical modification is made to the Annexure A and Annexure B of the Settlement Act.

Ø  Section 10(2)(b) which talks about the determination of requisite amount and extent of waiver:

Any taxpayer, who has availed the benefits under the Settlement Act towards the tax payable under the Entry Tax Act, shall not be eligible to claim set off of any amount paid in the appeal or otherwise including any amount paid on or before March 31, 2019.

[Trade Circular No. 40T of 2019]


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