Maharashtra: New Orders Issued By Government For Tax Exemption Of Commercial Vehicles

Mrunal Jadhav

Pune, December 7, 2020: The government has finally issued new orders for granting tax exemption to all types of vehicles in the transport category who pay an annual tax for a period of six months from April to September 2020. The order has also clarified that if the tax is already paid, then the tax will be adjusted for the next six months. Many commercial vehicle owners were likely to be deprived of tax exemption due to lack of clarity in the three earlier orders.

The commercial vehicle owners had demanded tax exemption, raising the question of how to pay the tax as commercial vehicles were closed after the lockdown. Accordingly, the decision to waive the tax was taken in September. The tax exemption was announced for a period of six months from April 1 to September 30 for vehicles paying annual tax.

However, the commercial vehicle owners that had paid annual tax were not clear with the tax exemption orders. Therefore, many did not benefit from the tax exemption, the issue was being raised by the State Goods and Passenger Transporter Association.

Meanwhile, a penalty was levied on tax evasion for six months. On all these issues, the commercial vehicle owners had held meetings at the government level and demanded clarification in the order. Accordingly, the government has issued new orders.

According to the new and amended order, vehicles that have paid tax till March 31, 2020, will get 50 percent exemption in the next tax cycle. If the tax is paid for the period from April 1 to September 30, the tax will be adjusted for the next six months.

Baba Shinde, president, State Goods and Passenger Transporters Association, said that commercial vehicle owners in the state have been trying for three months to get a six-month tax exemption. There were agitations and meetings. There were several errors in the three earlier tax exemption orders. The government has issued a new order. It will benefit all types of vehicle owners who pay annual taxes.