Mumbai, July 3 The Maharashtra government on Thursday tabled the bill to amend the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies)Act, 2025, to unlock the amount involved in the outstanding dues of taxes and reduce the old pending litigations.
The bill proposes an amendment to the state amnesty scheme to recover long-standing lending dues. The amnesty scheme will be applicable for the period from March 21 to December 31, 2025.
“There is a large amount of levy of tax being litigated by the Corporations, Public Sector Banks, Departments, Rural or Urban Local Bodies or other Authorities, Enterprises or Entities which are registered under Central Acts other than the Companies Act, 2013 or State Acts or are constituted by the government resolutions,” said the bill.
The bill further stated, “ Therefore, in order to unlock the amount involved in the outstanding dues of taxes and reduce the old pending litigations, the government considers it expedient to provide for lump sum payment option for settlement of arrears of tax, interest, penalty or late fee and closure of old pending litigations of such Authorities, Corporations, Departments which are willing to settle their arrears by making such lump sum payments. It is, therefore, proposed to amend clause (c) of sub-section (1) of section 2 of the Act, suitably.”
According to the bill, there is no provision which would involve the recurring or non-recurring expenditure from the Consolidated Fund of the state on its enactment as an Act.
According to statutory mandate, no relief will be available for undisputed tax before June 30, 2017. According to the bill, 100 per cent of the undisputed tax will have to be paid. However, for disputed tax, 30 per cent will have to be paid for the period before March 31, 2005.
As per the statutory mandate, the outstanding interest and penalty will be waived. For the period, April 1, 2005, to June 30, 2017, 50 per cent of the disputed amount will have to be paid.
According to statutory mandate, the outstanding interest and penalty will be waived. To avail the benefits of the Amnesty Scheme, the required amount will have to be paid within the prescribed period.
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