Session on “Settlement of dispute scheme under MVAT & CST”

On 23 March, 2019 from 3.00 pm to 5.00 pm at VIA Auditorium

Forum: Taxation & Corporate Law Forum

Speaker: CA Shailendra Jain

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 Settlement Scheme under MVAT is best opportunity : CA Jain

CA Shailendra Jain conducted the session on “Settlement of dispute scheme under MVAT & CST”, which was organised by VIA Taxation & Corporate Law Forum today at VIA.

He said that Govt of Maharashtra has recently passed an Ordinance to settlement of arrears of tax, interest, penalty or late fee which were levied, payable or imposed under various acts which where governed by Sales Tax Department.

CA Jain said that this is by far the best Scheme brought by the GoM, which will pass benefits to the tax payers. He explained the Settlement Scheme 2019 in detailed covering all the aspects of the Scheme related to MVAT, CST Act & Entry Tax.

He said that one should clearly understand the meaning of Disputed Tax and Undisputed Tax as defined under the Ordinance of Settlement Scheme. One should not get confused that where appeal is to be filed against any demand in disputed tax amount and demand against which appeal is not file in undisputed tax amount.

He elaborated on the definition of undisputed tax as per the Ordinance is i.e. the taxes collected separately under the Relevant Act; or The deductions allowed by the authorities in the statutory order for the taxes collected separately under the Relevant Act; or The taxes shown payable in the return or the revised return under the Relevant Act; or an amount claimed by the dealer as  deductions or allowed by the designated authority as per rule 57 of the Value Added Tax Rules or similar rules made under other Relevant Act; or An amount forfeited under the statutory order or excess tax collection shown in the return, revised return or, Audit report, as the case may be, submitted under the Relevant Act; or Any amount of tax interest or late fee determined and recommended to be payable by the auditor, in the audit report submitted as per section 61 of the Value Added Tax Act, and accepted by the assessee either wholly or partly; or The tax deducted at source (TDS) by the employer under the Relevant Act; or The tax collection made under section 31A of the Value Added Tax Act. He also cited few examples to explain what are disputed tax and what is undisputed tax.

During his presentation he said that application for the Settlement scheme should be filed in form 1 & 1A, after verifying all the facts of the case so that full benefit of the scheme can be taken. The scheme will commence from 1st April 2019 and hence any tax pertaining to settlement should only be paid after 1stApril 2019 only. He explained the conditions to avail benefit of the settlement scheme are that statutory order should be passed upto 15th July 2017 or the returns/revised returns should be filed upto 15th July 2019, settlement for late fees in respect of returns for periods upto 30th June 2017 will be available only if such returns are filed from 1st April 2019 to 31st July 2019, application should be made on or before 30th June 2019 for the first phase and before 31st July, 2019 for the second phase.

He further added that the application should be filed online and the application should be accompanied by the following in case it is against a statutory order viz. Copy of Concerned Statutory Order against with settlement with sought, Order of withdrawal of the appeal and if the same is not received then letter submitted for withdrawal of appeal, Challans for payment of amount after date of order till 31st March, 2019, Challans showing payment of requisite amount.

He covered various other aspects of the Settlement Scheme like once application is filed it cannot be rejected without giving proper notice to the applicant, where applicant failed to pay full tax amount proportionate benefit will be passed on to the applicant, appeal against the settlement order can be filed under specified conditions, separate application under each act for each period to be done.

Earlier, CA Naresh Jakhotia, VIA EC Co-opted Member welcomed the guest speaker with floral bouquet and in his opening remarks said this is best and golden amnesty scheme for tax payers brought by the GoM. CA Sachin Jajodia Convener of VIA Taxation & Corporate Laws Forum conducted the proceedings also proposed a formal vote of thanks.

Present were CA Saket Bagdia, Secretary of ICAI; CA Satish Sarda and representatives from industries Tata Steel; Eros Group, Minex Metallurgical Co Ltd., R C Plasto, Yash Forgings, Pee Vee Textiles; Orange City Steel Industries, Simplex Chemopack and professionals attended in large number.

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