Special Amnesty Scheme of MVAT

MVAT declared the Special Amnesty Scheme by issuing the circular No. 3T dated 24/01/2014. This scheme is the part of the amnesty scheme of unviable and close units as mentioned in Industrial policy of Maharashtra 2013.

The features of the scheme are given below:-

To whom the scheme applicable:

The scheme is applicable for the units who satisfy following conditions:-

1)      Unit is unviable as per certificate given by financial institution and unit is sick unit as per certificate given by Chartered Accountant.  Here “sick unit” means a sick unit as defined by Reserve Bank of India.

2)      When there is no financial institute related to unit then CA certificate as a “Sick Unit” as defined by RBI is obtained and if unit is closed more than one year then it will assume that unit is unviable and Special Amnesty Scheme is applicable.

3)      Any one out of following evidence of closer of business is considered

a.      Evidence of disconnection of electricity and electricity bills during the closure period

b.      Evidence of disconnection of water and water bills during the closure period

c.      Balance sheet of the financial year in which production of unit remain closed.

Similarly affidavit regarding the date of closer of the business is also required.

4)      There is change management after taking the benefit of Special Amnesty Scheme. And  if new management

a)     Is a company – then there should be change in the controlling interest

b)     Is partnership firm- then old partners should not have controlling interest.

5)      The new management should start the production on the same place. However change is product is allowed.

6)        Within 3 years from the date of application of special amnesty scheme the new unit should invest minimum equal amount of fixed assets (original value of land and deprecation amount of the building and machinery) of the old unit.

7)      New units should start production within a period of three years from the date of the sanction of the special amnesty scheme. In case of failure 12% p.a. interest will be recoverable on the benefit amount of the Special amnesty scheme.

 Period of the benefit:

The benefit of the under this scheme can claim up to 31/03/2014.


If principal amount of tax is paid in one time, interest and penalty amount will be waived. Benefit is available only in case of one time full payment of principal amount of tax.


Eligible unit can apply assistance commissioner of VAT Admin of sales tax of his jurisdiction.

Following documents are required along with the application

a.       Eligibility certificate of Special Amnesty Scheme form implementation agency

b.      Challan of payment of principally amount of tax paid

c.       Proof of withdrawal apple, if any

d.      Affidavit of the vat liability by the transferor

e.      Affidavit of transferee regarding the accepting the feature liability (tax+ Interest)

Last date of payment:

Amount paid before the declaration of the Amnesty scheme and after the 31/03/2014 is not considered. It means principal amount of tax should be paid before 31/03/2014 and after 24/01/2014.

Readers are requested to go through the official circular of MVAT and GR of Maharashtra Government attached here for more clarification.

MVAT Circular


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