Friday 5 June 2015

Local Body Tax (LBT) Amnesty Scheme- A relief

Sub: Amnesty Scheme for Local Body Tax (LBT)
 
Dear Sir/Madam,
 
Government of Maharashtra has issued notification for Maharashtra Municipal Corporations Amnesty Scheme Local Body Tax  (LBT) Amnesty Scheme, 2015 on 3rd June, 2015.
 
Salient features of Amnesty Scheme are as under –
1.       Applicability of Amnesty Scheme –
a.       Registered as well as unregistered dealers i.e. all dealers
b.      For period starting from implementation of LBT to 31st Mar, 2015.
2.       Amnesty Period – 3rd June, 2015 to 31st July, 2015
3.       Dealer should get registration (if not taken earlier) and file returns to avail benefit of the scheme.
4.       Entire amount of interest and penalty will be waived in case payment of total principal Tax amount is done in following situations –
a.       Dues payable as per any order passed upto 31st May, 2015 for the period upto 31st Mar-2015.
b.      If trader is in appeal then unconditional withdrawal of appeal.
c.       If dealer has not filed return and now return is filed along with payment of tax.
d.      In case original return is filed and dealer accepts additional tax by paying such tax alongwith furnishing of revised return.
e.      If dealer has already paid taxes and filed returns before coming in to force of amnesty scheme, then no interest will be levied for late payment of tax.
5.       No refund shall be granted as a result of amnesty scheme.
6.       There will be 10% random assessment of traders under amnesty scheme and such assessments must be completed by 31st December, 2015 and thereafter there is no tax, interest and penalty liability on the dealer.
7.       Separate application for amnesty scheme for each year should be submitted to the commissioner of corporation.
 
Impact of the scheme –
Government of Maharashtra has covered all types of dealers i.e. unregistered, registered but not paid taxes, or short payment of taxes earlier or late payment of taxes paid in earlier period for availing amnesty scheme.
In LBT rules there are heavy penal & interest provisions are prescribed like –
In case of unregistered dealers – 5 times of tax amount
Registered dealers but willful default in tax payment – 2 to 3 times of tax amount
Interest on late payment of tax – 2% per month
 
Looking at penal provisions in LBT rules, this amnesty scheme has given great relief to all types of dealers.
Therefore large number dealers/ traders/ industrial establishments / service providers ( Bank, Schools, Insurance companies etc) / e-commerce companies / builders and developers / contractors / software companies may take benefit of this LBT amnesty scheme.
 
Please feel free to contact for any further information required.
 
Thank you,
Yours Faithfully,
CA Amit Shah
For Amit Shah and Co.
Contact –
For Pune and PCMC
020 – 25421082
7710037422
For Rest of Maharashtra
0231 – 2656520
9422620771
8421887753
E-mail – ca.amitshah@icai.org
               caravi.shinde@icai.org
               yuvraj.shahaji.kapshikar@icai.org