Ease of doing business gets a boost as Maharashtra simplifies rules, waives penalties
The government pays an interest amount in case it does not give a VAT refund within 90 days. This has now been reduced to 60 days.mumbai Updated: Mar 19, 2017 01:16 IST
As part of its ease-of-doing-business initiative, the state government in its annual budget has unveiled wide ranging changes in the Value Added Tax (VAT) rules and waived several penalties.
During the presentation of the budget for 2017-18, state finance minister Sudhir Mungatiwar said he was proposing some changes in the tax laws with an objective to make compliance easier and recovery simpler.
The government pays an interest amount in case it does not give a VAT refund within 90 days. This has now been reduced to 60 days.
Similarly, the state government has been empowered to waive the penalty in case the dealer is unable to pay on time owing to technical issues. The dealer has been granted an extension of 180 days to file an appeal in the high court against the decision of the tribunal from the previous 120 days.
In addition, the state government has been empowered by the provision to make suitable a plan for disposal of cases. To get more traders in the VAT net, it has been proposed to exempt some part of the interest and penalty for the unregistered period.
In case of professional tax, Mungatiwar had proposed a waiver of the fine on tax payers who file pending returns up to September 30, 2017.
According to Mukesh Panchal, a sales tax practitioner, the proposals are very positive and aims at ease of doing business. “The current laws are very cumbersome and easing them will encourage more traders to register themselves and also ensure more money to the state exchequer,” said Panchal.