PRIVATE CIRCULAR MAHARASHTRA STATE BUDGET MVAT 2017

Transcription

1 Date: 06/04/2017 Dear Clients, PRIVATE CIRCULAR MAHARASHTRA STATE BUDGET MVAT 2017 Following are the major changes Effective from 01/04/2017 unless otherwise specified: 1. By Notification No. VAT-1517/C.R. 28/Taxation-1 dated 29/03/2017:- The rates of MVAT have been provided as under: A. Sch. A Following Items are Tax Free: a. Entry 8A Card swipe machines for merchant transactions NIL % b. Entry 9A Paddy, Rice, Wheat and Pulses etc. the exemption extended till GST comes into force. NIL % c. New Entry (a) 25A Gas or Electric Fired Human body incinerator NIL % (b) 25B Geomembrane used for farm pond, of thickness not Less than 500 microns having BIS specification NIL % d. New Entry 33A Milk testing kit for detecting milk adulteration NIL % e. New Entry 44A Soil testing kit for determination of soil nutrients NIL % f. Entry 51 Sub Entry ix Amsul NIL % g. Entry 51 for other Sub Entries Papad, Gul Solapuri Chaddars and Towels etc. exemption extended till GST comes into force NIL % h. Entry 59 Rasins and Currants exemption extended till GST comes into force NIL % i. New Entry 64:- Processed, Semi Processed, Semi Cooked, ready mix ready to eat shelled sweet corn retrospective exemption from 1/4/2005. NIL% B. Sch. C a. Entry 108 Tea in leaf or Powder form including instant tea continues to be 5.5% till GST comes into force. C. Sch. D Entry 11 Aviation Turbine Fuel taxation rate amended. Page 1 of 5

2 2. The Important changes by Maharashtra Tax Law (Levy, Amendment and Validation) Act, 2017:- Coming in force from 01/04/2017 in so far as MVAT Act is concerned; a. Sizing and Warping of Yarn : Sec. 8(3D) amended to give power to the government to retrospectively grant exemption by general or special order subject to conditions etc. from payment of tax, for transfer of property in goods involved in sizing and warping of yarn. b. Fresh assessment pursuant to directions / findings under the Act - Sec. 23(7) :Where fresh assessment has to be made under this section to give effect to any finding or direction contained in any order made under the Act including the order of Tribunal/High Court/Supreme Court then notwithstanding anything contained in the said section such assessment shall be made within a period of eighteen months, if the said order is made by the appellate authority in first appeal and in any other case, within a period of thirty-six months from the date of communication of such finding or direction contained in the said order to the assessing authority or, as the case may be, to the Commissioner. Similarly the period in respect of cases where certified copy of the appeal order is supplied earlier by the dealer concerned to the Assessing Authority or, as the case may be, to the Commissioner earlier than the said dates as the case may be, of thirty- six months shall be counted from the date of the said supply of order. c. Cancellation of Ex-parte Assessment Order Sec. 23 (11): The said Sub Sec. provided that in case of assessment U/s 23 (2),(3),(4),(5) and the dealer make application in the prescribed form within 30 days of service of the assessment order for cancellation of the assessment order giving reasons why he could not attend the hearing for the said assessment, the A.O. after verifying the application should cancel the assessment within three months from the end of the month in which the application for cancellation of order was done by the dealer. Now the Sec. is amended in respect of the assessment order passed on or after 30/03/2017 than no such application will be entertained but dealer will have to file appeal U/s 26(5). d. Setting aside of Assessment Order: Sec. 26(5) proviso is added for set aside of the assessment order in cases stated above (Sec. 23(11). The set aside order will be made Page 2 of 5

3 within nine months from 30/03/2017 if appeal is filed before said date (30/03/2017) and in other cases within six months from the date on which the appeal is filed. In such case the case goes back to the assessing authority for fresh assessment. e. Part payment at the time of filing appeal and Stay on recovery: Sec. 26(6A) and 26(6B) are added for proof of payment of the taxes to attached alongwith the appeal. Such payment will be as under: (i) Where declaration or certificate is disallowed on the ground of non production the amount of tax as provided in proviso to Sec. 26(6). (ii) If the appeal is also against issues other than declaration 10% of the disputed tax. (iii) If the appeal is for penalty deposit of tax not exceeding 10% of the penalty. Sec. 26(6C) the appellate authority shall stay recoveries in the prescribed manner for the remaining disputed dues on filing of the appeal. f. Time limit for Appeal to High Court: Sec. 27 amended in respect of appeal to the High Court, extended the period of filing appeal from the period of 120 days to 180 days. g. Power of remission of Interest: Sec. 30 amended giving power to the State Government to remit the whole or part of the interest in respect of any period payable by the registered dealer where the dealer was unable to pay the tax within prescribed time due to technical problems of sales tax automation systems and in case of URD who obtained registration late. h. Charge on property of defaulter: Sec. 37 amended in respect of creation of first charge on the property of the defaulter dealer on expiry of period s specified u/s 32(4). i. Sec. 40 amended to provide for adjustment of payment made by the dealer against the interest payable U/s 26(6C). j. Liability of directors: Sec. 44 amended to provide for the liability of the directors of the company for recovery of taxes or such other amount due from the company unless the director proves that non recovery is not due to his gross neglect, misfeasance or breach of duty on his part Page 3 of 5

4 k. Refund: Sec. 53 amended that when refund becomes due on or after 30/3/2017. The provision Sec. 53(1) will be applicable if the delay in granting refund is for more than 60 days. 3. Liquor dealers As per the Trade Circular No. 10T of 17 of MVAT dated 06/04/2017, the position is as under: The rate of tax on liquor, covered by schedule entries D-1, D-2 and D-3 is 60%, as per the respective Schedule entries. Manufacturer of liquor, holding license in PLL, BRL and CL-1 under the Maharashtra Prohibition Act, 1959, are required to pay tax at the schedule rate subject to the limit of MRP X 30/130, (Notfn. No. VAT 1511/CR 57/ Taxn 1 dtd 30 th April 2011) from 1 st April, 2017, such manufacturers shall be liable to pay tax at schedule rate subject to the limit of MRP X 35/135. From 01/04/2017, wholesalers, importing liquor from outside the State or from other country shall pay tax at Schedule rate, subject to the same limit of MRP X 35/135 on their sales of liquor brought from other States or from outside India. Restaurants, importing liquor from outside the State or from outside the country shall also be required to pay tax at Schedule rate subject to the limit of MRP X 35/135 of such liquor sold by them in addition to 5% or 20% of the actual sales price (depending on the star rating of restaurant) from 1 st April, The rate of tax in the above referred schedule entries continues to be 60%. Certain conditions in the Notfn. No. VAT 1511/ CR 57 /Taxation 1 dated 30/04/2011 have earlier been modified by notification no. VAT 1516/CR-99/Taxation-1 dated 6/9/2016 and certificate A (manufacturer), certificate B (wholesaler), certificate C (importer), certificate D (retailer) are required to be incorporated in the invoices. It goes without saying that the benefit of the partial exemption under this notification dated 30/04/2011 shall be applicable only on compliance of the conditions, mentioned in the said notification, as amended from time to time. 4. Profession Tax:-The amendment is from 01/04/2017 Page 4 of 5

5 a. Sub Sec 3(2) 3rd Proviso amended and accordingly the liability of newly enrolled (on or after 01/04/2017) person for the prior un-enrolment period will not exceed four years prior to enrollment. The person liable but not still enrolled should take opportunity to get them enrolled as the professional tax is not subsumed with GST. b. Sec. 4A: Similarly, the employer granted registration on or after 01/04/2017, shall not be liable to pay tax for a period of more than four years from the end of the year immediately preceding the year in which the certificate of registration has been granted or the year in which the proceeding for registration is initiated against him, whichever is earlier. c. Sec. 4B: Empowers to State Government to provide for the class of persons who shall deduct the tax at source out of the commission paid or payable to an agent, as specified in the notification. The deduction should be at the rate specified shall be ` 2500/- p.a. (Sch. I (Entry 1A) d. The said Sch. I now also specifies at entry 20A that the service provider registered under the Finance Act 1994 has to pay Prof. ` 2,500/- p.a. Now the persons holding service tax registration has to be enrolled and pay ` 2,500/- p.a. Note position under GST after 1/7/2017 (tentative date) not clear. e. Sec. 9(2) amended to provide for simple interest in addition to amount of tax, a sum calculated at the prescribed rate on the amount of profession tax for each month or part thereof after the due date. If there is any query you may contact us. For Jagdish B. Shah & Associates J.B. Shah Partner Page 5 of 5