Tuesday, June 9, 2015

LBT Amnesty Scheme in Detail

In Short :
As per the Amnesty Scheme (Official Name - The Maharashtra Municipal Corporations Local Body Tax Amnesty Scheme 2015), penalty and interest on accumulated dues  of LBT will be  waived, subject to fulfillment of conditions, such as registration, payment of tax and filing of returns etc. The Scheme comes into force from 3 June 2015 and is valid till 31 July 2015.

Eligible Persons :     Both Registered and un-registered Traders /Persons
Tax Dues in :  Any of 25 Municipal Corporations within Maharashtra State

Tax Dues covered  : From date of introduction of LBT to 31.03.2015 (Including Dues pertaining to assessed period as well as un-assessed period)
Compliance Period  :  03-06-2015 to 31-07-2015

This scheme shall be applicable to the registered as well as non-registered (if trader or person registers himself during the prescribed time period of Amnesty Scheme) trader or person and for temporary registered person or trader for specific year. The scheme shall be applicable for the total period starting from date of implementation of Local Body Tax in the Corporation to 31st March 2015. The Scheme shall be applicable for assessed period as well as for un-assessed period. Under the scheme, if trader or person pays total amount of principal tax payable by him to respective corporation during the amnesty period of 3rd July, 2015 to 31st July, 2015 out of pending dues then the total amount of interest or penalty shall be waived. If respective trader or person pays part of outstanding principal amount of tax then in respect of only tax paid amount interest and penalty) shall be waived and the balance tax which is not paid shall be recovered with interest and penalty.

If return is not filed by trader and if he files returns and pays total amount of tax during the amnesty period then interest and penalty shall not be levied.
If trader has already furnished returns and by furnishing revised return he accepts additional tax liability and pays the total amount or tax then interest and penalty shall not be levied.

  • Full waiver from interest and penalty
  • In case of part payment of tax waiver shall be limited corresponding to the amount of tax paid.

Terms And Conditions for availing benefit of Amnesty Scheme
  • Un-registered person need to first register themselves.
  • Tax returns shall be filed from the date of tax liability to 31st March 2015
  • Pay Local Body Tax upto 31st March 2015 by 31st July 2015.
  • Benefit shall be withdrawn if, appeal/ review application/writ petition is filed subsequently.
  • Separate amnesty applications has to be filled before respective Municipal Commissioner before 31st July 2015.
  • Last date for filing returns, Applying for this Scheme, making payment is 31st July 2015.

Other Features
  • If the assessee pays total pending tax dues upto 31.03.2015 as per Order passed before 31.05.2015, waiver from interest and penalty
  • Unconditional withdrawal of appeal necessary if, Person already in appeal and submission of proof of such unconditional withdrawal
  • No refund shall be granted as a result of this Scheme
  • Assessments under amnesty shall be completed by 31.12.2015 and no levy of tax, interest or penalty thereafter.
During assessment of "amnesty application", if variation in tax liability is more than 10%, interest or penalty will be applicable. This Clause is about the Assessment of Amnesty and not the assessment which might be already going on in regular course.

Download Local Body Tax Notification LBT-2015/CR-82/2015/UD-32 (LBT Amnesty Scheme) - ge.tt

Download Local Body Tax Notification LBT-2015/CR-82/2015/UD-32 (LBT Amnesty Scheme) - NMC

Read about Application for Amnesty Scheme

Download Report about this Amnesty scheme by EY

Note : LBT is scheduled to be abolished from 1st August 2015. but these is no Official notification in this regard as of now. I shall be updating about this as soon as there is any Notification / Circular. Subscribe if not already to receive the updates in Email.