NOTIFICATIONS ISSUED UNDER THE MVAT ACT, 2002 (From to )

Transcription

1 MAHARASHTRA STATE BUDGET & RECENT UPDATS UNDER MVAT ACT & ALLIED LAWS CHAIRMAN CA PRASHANT VORA SPEAKER NOTIFICATIONS ISSUED UNDER THE MVAT ACT, 2002 (From to )

2 VAT 1513/CR-61/Taxation-1 Dated : Amendments relating to filing of Returns (Rule 17(4) w.e.f ) Furnishing of J1, J2, C, D Annexures on or before 30 th June of succeeding year with last return for the year in monthly, quarterly or half yearly periodicity as the case may be. Deletion of Rule 24 (1) related to Form 304. Replacement of MTR6 Challan with Form 210 for payment of TDS VAT 1513/CR-61/Taxation-1 Dated : (Contd) Amendments to Rule 54 Dealers engaged in giving Motor Vehicles on Lease will not be able to claim set off. Amendments to Rule 61 Bank Guarantee from a private sector bank as well as foreign bank would be accepted in addition to notified banks. Amendments to Rule 87 Servicing of digitally signed copy of order or notice by shall be valid from Amendments made in From 303 Assessment Order. Form 424 Return of TDS by the employer to be uploaded electronically is introduced

3 Order No Sr DC (A and R)/PWR/1006/3/ADM 3(8) Dated : Read with Circular No 4T of 2013 dated Amendments to order dated by insertion of Sr 10A so as to include Sec 32A for issuance of demand notice as per Form 704. AC, DC, STO are authorized to issue such demand notices. Further clarification regarding amendments being procedural and will apply to any period in past where the dealer has accepted recommendation by accountants VAT-AMD-2013/1B/ADM-8 Dated : Form 424 (Annual Return of TDS under MVAT) is made mandatory to b filed electronically. VAT-AMD-2013/1B/ADM-8 Dated : Form 704 (MVAT Audit Report) is amended

4 VAT-1513/CR-106/Taxation-1 dated One more notification is issued under section 41(5) of the MVAT Act w.e.f. 1st January, 2014 granting partial/full exemption of tax payable on the sale of wine covered by Entry 3(A) of Schedule D, subject to the condition and restriction specified in the schedule. Schedule 1 provides for exemption in respect for sale of goods covered by Schedule D-3A, are purchased on or after 1st January, Whereas Schedule II provides for exemption in respect of sale of wine covered by such purchases before 31st December, VAT-1513/CR-124/Taxation-1 dated Exemption from late fees to following class of dealers :- In case of dealers having new registration In case of dealers whose RC was restored under Order of Appellate Authority or any Court Dealers who have claimed ADM relief Dealers unable to upload return due to technical issues In case of death of proprietor, last return filed within one year In case of developers for the period June,2006 to September,2012, if the returns are filed on or before The note under this notification states that if the dealers covered by the notification herein above, have either paid the late fee or adjusted the late fee against the refund for any of the returns then the refund or adjustment of such amount shall not be permitted

5 VAT-1513/CR-130/Taxation-1 dated In Schedule A Entry No. 63 added covering Motor Vehicles having capacity up to 200 CC modified for handicapped persons certified as "invalid carriage" in the registration certificate. VAT-1513/CR-150/Taxation-1 dated In Schedule D, Entry 3A is amended to exclude the wine covered by new entry 3B. By this notification rate of tax on wine covered by Schedule D-3A is enhanced by 20% to 40% w.e.f New entry 3B is inserted by this very notification w.e.f Wine when sold in bulk and where the provision of the Maharashtra Portable Liquor (Fixation of Maximum Retail Price) Rules 1996 are not applicable, the rate is prescribed at 20% VAT-1513/CR-151/Taxation-1 dated Rule 54 (i) amended w.e.f. 1 st January,2014 for denial of set off on purchase of Liquor covered by entries 1, 2 and 3 and Wine as covered by entry 3A of Schedule D, except for situations covered under rule 54 (i) (a) and (b) VAT-1513/CR-147/Taxation-1 dated Amendment is done to Rule 58 to give effect to the directions given by the SC in the decision of MCHI Table in Rule 58 (1) amended to allow deduction for labour from total contract value after deducting cost of land determined under sub rule (1A) Proviso to Rule 58 (1A) added to allow dealer to prove before Department of Town Planning and valuation that actual cost of land is higher than that determined and to claim refund from Sales Tax Department of taxes paid on such valuation

6 VAT-1513/CR-147/Taxation-1 dated (Contd) New sub rule (1B) inserted to determine the value of goods involved in works contract by providing table for stage wise completion of work and point of Sales. For above stage wise completion a certificate from local planning authority is needed & in case no such authority, certificate from RCC Consultant can be furnished New sub-rule (1C) is inserted to provide that if the dealer fails to establish the stage during which the agreement with the purchaser is entered then the entire value of goods as determined after deductions of cost of land and labour under sub-rules (1A) and (1) from value of entire contract, shall be taxable The Ordinance extending date of assessment for developers Sec 23 (13) is added to MVAT Act providing for in case of developers limitation for passing the assessment order, for any periods expires on 31st march 2014, is extended to 30th September VAT-1514/CR-46/Taxation-1 dated Schedule A Entry 2A inserted to cover notified aircraft spare parts and Entry 39 amended for other items like poha, lahya, chirmura & Rosted gram & dalwa etc. Schedule C Entry 25 relating to cotton substituted Entry 83 relating to roasted or fried pulses substituted Entry 107(2A) inserted to cover notified capital goods and parts and components thereof for sale to Government

7 VAT-1514/CR-29/Taxation-1 dated Read with Trade Circular No 9T of 2014 dated Read with Trade Circular No 18T of 2014 dated Amendment to Rule 17(4) to provide for filing of annexures in format J1 and J2 before uploading regular returns. In case of dealers not covered under VAT Audit, filing of annexures in format C,D,G,H and I before uploading last return for the year. Dealers having periodicity of Six monthly may apply to the Commissioner for change of periodicity to Quarterly. Form 101 for MVAT Registration is amended so as to cover details related to Aadhaar Card (UID) Number of the dealer (either proprietor or partner) VAT 1514/CR-62/Taxation-1 Dated : Read With Trade Circular No 18Tof 2014 dated Amendments relating to filing of Returns (Rule 17) Furnishing of J1, J2, C, D, G, H,I Annexures for F Y to be done along with return for the period ending 30 th Sept., 2014 in case of dealers having turnover between 60 Lacs to 1 Crores. Deletion of Rule 22 related to Sec 23 (9). Introduction of Form 604A for the finding of Audit based on Electronic Data by Sales Tax Department Sec 67(2). Form 604 is prescribed for intimation in any other case u/s 63(7). Form 605 is prescribed if the return or revised return filed by the dealer is accepted in respect of one or more specific issues

8 VAT 1514/CR-59/Taxation-1 Dated : State has notified few more goods to be Spare parts of Air Craft for the purpose of Entry 2A of Schedule A. VAT 1514/CR-58/Taxation-1 Dated : Read With Trade Circular No 17Tof 2014 dated Composition Scheme for Retailers is substituted. For details reference to be made to said scheme VAT 1514/CR-68/Taxation-1 Dated : State has notified w.e.f the District Collector, Cantonment Board, or any other authority of State or Central Govt to be persons responsible for collection of tax in respect of Mines or Minerals 10% of Royalty payable to the authority shall be the rate of tax to be collected. VAT 1514/CR-69/Taxation-1 Dated : State has notified Capital Goods and parts and components thereof for the purpose of Schedule C 107 (2A) Sale of notified goods to government 5% tax

9 VAT 1515/CR-3A & 3B/Taxation-1 Dated : Schedule D-5 (a) refers to High Speed Diesel Oil when delivered to a retail trader for trading within Municipal Jurisdiction of Mumbai, Thane & Navi Mumbai. Schedule D-10 (a) refers to any other kind of Motor Spirit when delivered to a retail trader for trading within Municipal Jurisdiction of Mumbai, Thane & Navi Mumbai. For both above entries Municipal Corporation of Nagpur is new area added in this notification for the period to VAT-1515/CR-39(1) & (2)/Taxation-1 dated Amendment in Schedule A Entry 6 made changed as Entry 6(a) New entry 6(b) to cover Graph Book, Laboratory Note Book, Drawing Book and workbook. Extension of exemption from to to entries 9A - paddy, rice, wheat, pulses, flour of wheat, flour of pulses etc. 51 papad, gur, chillies, turmeric, coriander seeds, towels, wet dates, solapuri chaddar, coconut in shell and seperated kernels etc. 59 raisins and currants New Entry 12A Drugs for treatment of Cancer as may be notified from time to time

10 VAT-1515/CR-39(1) & (2)/Taxation-1 dated (Contd) Amendment in Schedule C New Entry 17A Cashew Shell Entry 29 sub entry D added- guide wire for medical purpose Entry 70 substituted with new entry for Papers as may be notified (Notification VAT 1515/CR-39 (2)/Taxation-1 issued in which various types of papers are now related to the Excise Tariff) Under Entry 107 new entry 7A inserted ladies hand bags and ladies purses Entry 108 (1) (b)- tea in leaf or powder form including instant tea the concession extended up to Entry 108 (3)- wood free plain and pre laminated particle board etc.- entry deleted Entry 111 with the words Compact Fluorescent Lamps, the word LED Bulbs inserted LA BILL NO XVI of 2015 MAHARASHTRA ACT NO XVII of 2015 dated

11 Amendments in Sec 2 Definitions Sec 2 (20) Purchase Price Expl IA is added w.e.f as Purchase Price shall not include the amount of Service Tax levied or leviable under the Finance Act, 1994 and collected separately by the seller Sec 2 (25) Sale Price Expl IA is added w.e.f as Sale Price shall not include the amount of Service Tax levied or leviable under the Finance Act, 1994 and collected separately from the purchaser Judgment of Sujata Painters & B L Kashyap & Sons Ltd Positive effect However whether judgment of Nikhil Comfirts will hold good for Composition? Sec 20 : Returns and Self-assessment Proviso to Sec 20 (4) amended to restrict one revised return as applicable to clause (a) & (b) only w.e.f Effectively dealer may file more than one annual revised return u/s. 20 (4) (c) Sec 20 (6) amended to reduce late fees if return filed within 30 days to Rs. 1000/- from Rs. 2000/- w.e.f

12 Sec 23 : Assessment Changes made in Sec 23 (5) (a) as for the words During the course of any proceedings under this Act, if the prescribed authority is satisfied with the words to be replaced Where the prescribed authority has a reason to believe w.e.f Cases of mismatch of transactions, CDA etc. Proviso to Sec 23 (5) (d) is added fixing the time limit for completion of assessment under this sub clause to be six years w.e.f Order passed under 23 (5) is now qualifies for cancellation of assessment u/s. 23 (11) & reassessment u/s. 23 (12) w.e.f Sec 28 : Classification of Turnover A changed Sec. 28 is substituted w.e.f to enable the changes in turnover so as to assess proper tax if based on any order of review or appeal has any changes if any tax assessed under one Act should have been assessed under another Act or any claim allowed or disallowed modifies the tax liability under same Act or any other Act

13 Sec 30 (2) : Calculation of Interest Sec 30 (2) is amended to provide for interest calculation mechanism in case of annual revised returns w.e.f In case where dealer holds registration certificate for whole year --- interest will apply from 1st October of the year to which the annual revised return relates In case where dealer is granted registration certificate in between the year but before 30th September interest will apply from 1st October of the year to which the annual revised return relates In case where the registration is cancelled in between the year but after 30th September interest will apply from 1st October of the year to which the annual revised return relates In case where dealer is granted registration certificate in between the year but after 30th September interest will apply from effective date of registration In case where the registration is cancelled in between the year but before 30th September interest will apply up to effective date of Cancellation of Registration Sec 44 : Liability to Pay Taxes A new sub-section (4A) is added w.e.f into Sec. 44 to provide an option to an amalgamated or demerged company as the case may be to opt the date for transfer of business for registration & cancellation purposes as either the date of order of Court or the date which is notified as date of Amalgamation or demerger by the Registrar of Companies. Similar amendments are carried out in Sec 47 dealing with Amalgamation, Merger or Demerger cases wherein with court the tribunals & courts are allowed to be considered & the date of the said order to be replaced by the date as opted by such company as per Sec 44 (4A)

14 Retrospective amendment to entry of Schedule C Schedule C -4 an explanation is added w.e.f. 1st April, sewing thread shall include embroidery thread. Schedule C -91 an explanation is added w.e.f. 1st April, spices shall include spices in all forms, varieties and mixtures of any of the spices. Retrospective amendment to Notification No VAT-1505/CR- 234/Taxation-1 dated 1 st September 2005 Schedule C-54 (Notification No 1505/CR-234/Taxation-1 dated explaining Industrial Input) for the words Desi loni the words Desi loni, white butter shall be substituted w.e.f. 1st September, Amendment to Schedule appended to the Maharashtra Tax on the entry of Goods into Local Areas act, 2002 A new Entry No 17 is inserted w.e.f so as to cover goods covered in C 55 (iv) and (v) to be 5% C-55 (iv) Steel Bars (rounds, rods, square, flats, octagons and hexagons, plain and ribbed or twisted in coil form as well as straight lengths) C- 55 (v) Steel Structural (angles, joints, channels, tees, sheet piling sections, z sections or any other rolled sections)

15 Amendment to Schedule I appended to the Maharashtra State Tax on Professions, Trade, Callings and Employments Act, 1975 Under Entry No 1 changes made in clause (b) w.e.f as In case of a male, Rs. 7,501- Rs. 10, PT is Rs. 175 per month In case of a female, Rs. 7,501- Rs. 10, PT is Rs. NIL Amendment to the Maharashtra Purchase Tax on Sugarcane Act, 1962 Remission and Exemption In Sec 12B Clause (e) amended to include year with year so as to enable government to remit or exempt either whole or part of tax payable by any factory or unit for the purpose of assisting the sugar factories in the state, to give the fair and remunerative price to the farmers for the year and CIRCULARS ISSUED UNDER THE MVAT ACT, 2002 (From to )

16 Trade Circular No. 3T of 2013 dated The commissioner has in detail explained the amendments to the schedule entries under the Maharashtra Value added Tax Act, 2002 corresponding to the State Budget dated to be effective from The same amendments are already covered with Budget of Trade Circular No. 5T of 2013 dated As per sec 74(3)(f) of MVAT Act, if a dealer fails without sufficient cause to file any return within the time prescribed under section 20, he can on conviction be punished with simple imprisonment for a term which may extend to six months and with fine. Dealer pay taxes with late fees no prosecution Dealer failed to file return and pay taxes and department issues notice for prosecution, compounding is permissible subject to dealer pay taxes and late fees with return Addl Commissioner is empowered to enhance compounding

17 Circular No. 10A of 2013 dated The commissioner has issued an internal circular dated as administrative instructions in respect of assessments or audit plans for the period to & instructed the same should be completed by The same is not dealt with here as the time limit for completion of cases is over by date Circular No. 9A of 2013 & 1A of 2013 dated The commissioner has issued two internal circulars dated towards procedure to be adopted and guidelines for cross checks of Transactions of the sellers who have filed incomplete Annexures J1 and J2 and given parameters for the cross verification required, specifically by EIU, LTU and non LTU category of dealers. This procedure is mainly for the year and , the exercise was to be done across Maharashtra by the concerned officers. Same is not dealt with here in detail as the same was restricted to past years

18 Trade Circular No. 6T of 2013 dated The said circular has dealt with uploading the information of PAN/TAN and other contact details for the Profession Tax Authorities to update the information of latest addresses, Telephone No., ids, PTRC and PTEC along with MVAT, CST, TAN, Service Tax numbers of all the profession tax payers. The Profession tax information form is made available on website of State Government. All the PTRC and PTEC holders were requested to fill in the requisite information and upload on mahavat website within 30 days.the steps for uploading the information are detailed in this circular Trade Circular No. 7T of 2013 dated This circular was issued with for laying guidelines & procedure to be followed for correction of mistakes by dealers or miscellaneous refund of excess payment of taxes which covered certain points such as Payment made against wrong TIN Payment made against wrong period or wrong Act Double payment of taxes by dealer Amount paid but not available on Mahavikas Refund of Excess payments by bank

19 Trade Circular No. 8T of 2013 dated This circular has reference to the new Rule 55 B introduced in MVAT Rule, 2005 w.e.f 15th Oct, 2011, it reads as follows :- Nothing contained in Sub Rule 6 of Rule 53, or as the case may be, Clauses (g) and (h) or Rule 54 shall be applicable to the Developers and the Units, in processing area of Special Economic Zone. This Rule is specifically for setoff to Developers and it reads as follows: Explanation :- For the purpose of this Rule processing area shall mean the processing area as demarcated under Section 6 of SEZ Act, 2005 (28 of 2005) but excluding Education Institution, Hospitals, Residential or Commercial Complexes, leisure and Entertainment facilities or any other facilities allowed for authorized operations, as may be notified by the state Government, under Section 50 of the said Act, for their operations and maintenance. By Circular 8 T of 2013 dtd the commissioner has clarified that 55B Rule shall be applicable only to Developer and Units in processing area of SEZ. It is specifically stated in the circular that Co Developers are not covered by the scope of 55B and therefore they will not be eligible to claim setoff as per rule 55B Trade Circular No. 9T of 2013 dated The Department had given assurance to the Hon ble Bombay High Court in the matter of Mahalaxmi Cotton Ginning Processing and Oil Industries case that refund will be given by the department even without application from the dealer, to the extent tax is recovered from non filers. Accordingly the sales tax department have followed up with non-filers for filling of returns and attempted to recover from them the tax due. This circular gives mainly the detailed procedure to be followed by the Authorities

20 Trade Circular No. 9T of 2013 dated The important aspects as far as Dealers are concerned are :- No application to be made by the dealer entitled to refund. The books of account of eligible dealer entitled to refund shall not be called for verification. If earlier an assessment order is passed creating demand, then rectification order will be passed. The dealer will become eligible for dues paid by him. In case no dues are paid by dealer still Rectification Order needs to be passed resulting in no demand no refund position. If the Dealer has preferred appeal, the position of refund will be intimated to the Appellate officer. No refund of ITC will be allowed if the purchases are from dealers declared as non genuine dealers by the department, even if such dealer has paid tax, fully or partly Trade Circular No. 4T of 2014 dated By this circular the existing provisions related to uploading of applying and obtaining CST Declarations is modified w.e.f Trade Circular No. 11T of 2014 dated Applicability of Supreme Court Judgment in case of Bansal Wire Industries The Commissioner of Sales Tax has by Circular No. 11T of 2014 dated informed that the matter relating to the applicability of Supreme Court Judgments for the transactions prior to date of judgment i.e is referred to the State Government. It is made clear that all transactions after would be governed by the Supreme Court Judgment and Stainless Steel wire would be subjected to 12.5% after

21 Trade Circular No. 11T of 2014 dated In this circular, the Commissioner has given reply to about 28 queries raised by Trade and Association in respect of computation of tax liability of developers. Trade Circular No. 15T of 2014 dated The commissioner has in detail explained the amendments to the schedule entries under the Maharashtra Value added Tax Act, 2002 corresponding to the State Budget dated The same amendments are already covered with Budget of Trade Circular No. 16T of 2014 dated By this circular, the Government of Maharashtra introduced the payment facility under the Profession Tax Act, Luxury Tax Act, Purchase of Sugarcane Tax Act via GRAS System (Government Receipt Accounting System). The said facility can be availed through w.e.f Making payment of the aforesaid taxes on GRAS is optional at present. It shall be made mandatory soon

22 Trade Circular No. 20T of 2014 dated Kindly recall the earlier circular 52T of 2007 dated issued after the amendment to CST Act. By a circular in 1981 the concession was available to the dealers who had not effected any sales in the course of interstate trade or commerce from filing of Return under CST Act for that respective period. By this circular it is clarified that a dealer, who is claiming deduction, u/s. 8(1) of the MVAT Act or deduction u/s. 6A (branch transfers etc.) of the CST Act, in the MVAT return shall be required to file a return under the CST Act Trade Circular No. 1T of 2015 dated By this circular the commissioner has explained and modified the instructions given in Trade Circular No. 15T of 2014, dated 6th August It is stated that for the purpose of proviso to Sec. 26(6) if the Appellant receives some forms after the Assessment Order, the appellant should produce list of the form enclosed with the circular. At the time of filing of appeal, the Appellate Authority shall fix the part payment after checking the list. The Commissioner has clarified that the Declarations received up to the date of filing of appeal only would be considered for the purpose of fixing part payment

23 Trade Circular No. 2T of 2015 dated Vide this circular, the commissioner has extended the time limit for filing of Vat Audit Report in Form 704 in respect of financial year to and after submission of audit report, physical copy of acknowledgement & statement of submission should be filed on or before Trade Circular No. 3T of 2015 dated The Sales Tax department had started the electronic payment for the payments under Profession Tax, Luxury Tax, Sugarcane Purchase Tax Act through Government Receipt Accounting System (GRAS) with effect from 18th Sept., Some clarifications in this regard are given by Circular no. 3T of 2015 dated 20th Feb., Trade Circular No. 4T of 2015 dated Vide this circular, the State of Maharashtra has introduced a single application for registration under MVAT Act, CST Act, PT Act. The Profession Tax Act registration would include both PTRC and PTEC. The facility would be available from 9th March, 2015, the relevant changes made in the MVAT and CST applications are stated in this circular. Trade Circular No. 5T of 2015 dated Vide this circular, the procedure for registration under MVAT & CST Act is changed

24 NOTIFICATIONS ISSUED UNDER THE CST ACT, CST 1513/CR-149/Taxation-1 dated Vide this notification, certain changes are made to the Central Sales Tax (Bombay) Rules 1957, by the definition of assessing authority is amended to include authority competent to asses or audit. Within whose jurisdiction the place of business is situated. A new Rule 19 is inserted so as to incorporate provisions related to issue of declarations in electronic format by the officer & subsequent issue thereof by the dealers. Further Form VII B (Order of Assessment of Tax under Central Sales Tax Act, 1956) is modified and replaced. CST 1414/CR-54/Taxation-1 dated This notification under section 8(5) of CST Act, exempts w.e.f tax payable on sale of unmanufactured tobacco, except when sold in packets under a brand name, in the course of inter-state trade or commerce

25 NOTIFICATIONS ISSUED UNDER THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, PFT.2014/CR 36/Taxation 3 dated Vide this Notification, the Profession Tax Rules are amended. Following the amendment made to enhance the minimum limit for payment of profession tax by the employer, the form is amended. These are consequential amendments to Form IIIB. PFT.2014/CR 38/Taxataon-3 dated Vide this notification, the State of Maharashtra has notified the class of employers who are exempted from payment of late fee for late filing of returns

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