Settlement amount

4.

1. (1) The settlement amount to be paid along with each application for settlement shall be 40 percent of the total amount of the old arrears or 100 percent of the tax amount involved in the old arrears, whichever is higher: Provided that where a separate penalty order has been passed for which application for settlement is furnished, then it shall be mandatory to pay the 100 percent amount of the tax outstanding, as per the relevant statutory order of assessment, which is linked with such separate order of penalty: Provided further that for calculation of settlement amount, if any part payment had earlier been made in relation to a statutory order, such paid amount shall be adjusted proportionately against the initially outstanding amount of tax, interest and penalty assessed in the statutory order.
2. (2) The payment of the settlement amount shall be made electronically in the form of challan prescribed under the relevant Act or, under sub-rule
3. (6) of rule 37 of the Madhya Pradesh Vat Rules, 2006, as the case may be.