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The Maharashtra State Government has notified a scheme named One Time Payment of Tax Scheme,2019. (hereinafter referred to as the ‘OTPT Scheme’) vide notification No. PFT.1218/C.R.52/Taxation-3 dated 22nd February,2019 under The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (hereinafter referred to as the ‘Profession Tax Act’).
The OTPT scheme provides for an option for payment of Profession Tax in advance for an enrolled person under the said Act. The persons enrolled under the Profession Tax Act are granted an Enrollment Certificate by the department which is commonly known as PTE Certificate. The Schedule –I of the Profession Tax Act provides the rates of profession tax applicable to different class of persons. It may kindly be noted that the OTPT scheme is applicable only to the persons enrolled under the Profession Tax Act i.e PTE Certificate holders and not to the Employers registered under the Act i.e. PTR Certificate holders.
The OTPT Scheme replaces the earlier option of paying Profession Tax(PTE) in advance on lump-sum basis for the period of five years as per clause 8(3)(a) of the Profession Tax Act.
The OTPT scheme can be compared with the One Time Tax payable to RTO at the time of purchase of a new vehicle. The government collects the entire tax at one time and the subsequent hassles of collection, payment and administration of the same are avoided.
The details of the OTPT Scheme are explained herein below:
1. Date of Commencement of the Scheme
The OTPT Scheme has come into force retrospectively with effect from 1st April,2018 and will remain effective till a further notification to end / replace / amend the scheme is issued. It as an open-ended scheme.
2. Major Conditions and Restrictions to avail benefit under the scheme:-
Clause 2 of the scheme notification, provides for conditions and restrictions to avail the scheme which are as under:-
3. TABLE appended to the Notification
Five different tables are provided for the five different types of rates applicable under the provisions of the Profession Tax Act. The maximum period of 35 years is only available for the enrolled persons liable to pay Profession tax of Rs.2500/- p.a. For the other tax payers te option is available minimum for 3 years and maximum 5 years.
Please click on the below link to refer the table:
Guide on One Time Payment of Tax Scheme, 2019
Overall the OTPT scheme appears to be beneficial to the tax payers as well as the Government. It is not mandatory to opt for the scheme. The tax payers can chose the period best suited to them to avail the benefit of the scheme.
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