Bihar Settlement of Taxation Disputes (Second) Ordinance, 2020

The Bihar Government on 01.01.2021 has issued the Bihar Settlement of Taxation Disputes (Second) Ordinance, 2020. The amendment provides the following settlement amount for respective disputes;

• Arrear of tax on account of failure to furnish or produce any statutory Certificate or Declaration: 100% of remaining balance amount of the arrear of tax in dispute, as reduced by the amount of tax involved in the value of Certificates/Declarations in the possession of the applicant till the date of application, or the amount already paid towards such arrear, whichever is higher;
• Other Arrear of tax: 35% of the arrear of tax in dispute or the amount already paid towards such arrear, whichever is higher;
• For dispute arising out of an order levying penalty, fine or interest under the law: 10% of disputed amount of penalty or interest or the fine, as the case may be, or the amount already paid towards such arrear, whichever is higher.

Any dispute in respect of which the settlement amount specified by the ordinance has been deposited into Government Treasury, in the manner and within the time specified, shall be deemed to have been concluded and it shall not be continued by any authority or Court before which such dispute is pending. The amendment shall be deemed to have come into force on the 21st day of September, 2020 and shall remain in force for a period of six months.