,1',5(&77$;(6ă9$78SGDWH 1LNLWD%DGKHNDAdvocate & Notary INDIRECT TAXES VAT Update A. Draft Bill propositions The State Finance Minister has presented a Bill to amend certain provisions of MVAT Act as announced in the State budget. The Maharashtra Tax Laws (Levy, Amendment and Validation) Act 2015 (LA Bill No. XVI of 2015 dt. 26-3-2015) A.3 Amendments to Entry tax Act Two new categories of goods are added to be subjected to levy of entry tax under Maharashtra Tax on Entry of Goods into Local Areas Act. This is the new levy effective from 1-4-2015 as serial No. 17 of the Schedule All the amendments are to be effective from The two categories of goods now added in the UV#RTKNGZEGRVYJGTGURGEKſECNN[UVCVGF Schedule appended to this Act are as follows: hereinbelow . Schedule C-55 , sub-entries (iv) and (v) .. Entry tax rate is 5% A.1 Amendment to Maharashtra Purchase Tax C-55(iv) – Steel Bars (rounds, rods, square, on Sugarcane Act Section 12B of this Act empowers State to issue ƀCVUQEVCIQPUCPFJGZCIQPURNCKPCPFTKDDGF Notification to assist the Sugar factories in or twisted in coil form as well as straight Maharashtra. The addition of the year 2014-15 lengths) will empower the State to issue notification C-55(v) – Steel Structural (angles, joints, to give fair and remunerative price to the channels, tees, sheet piling sections, Z sections farmers. or any other rolled sections) A.2 Amendment to Profession Tax Act As promised in the budget, the amendment is made in the schedule appended to the Act. In Entry 1(b) is divided into two categories i Male Employee salary exceeding ` 7,500 but not over ` 10,000 – Prof. tax payable is ` 175 per month ii Female Employee salary not exceeding ` 10,000/-Prof. tax payable NIL ¯144 B. Amendment to MVAT Act All the amendments are to be effective from UV#RTKN'ZEGRVYJGTGURGEKſECNN[UVCVGF herein below B.1 Service Tax not to be part of Purchase Price and Sales Price Explanation 1A is added to definition of 2WTEJCUG2TKEG=5GE ?CPFVQFGſPKVKQPQH Sales Price Section 2(25). | The Chamber's Journal | $SULO | 0/ ,1',5(&77$;(6ă9$78SGDWH To clarify that purchase price/sale price shall not include, the amount of service tax levied or leviable under the Finance Act, 1994 and collected separately by seller/from purchaser. C. Amendment in Revised return Relation to C.1 Proviso for section 20(4) is amended. For the words the aforesaid clauses, (clause (a) or, as the case may be clause (b),” is substituted. As a result of this substitution, the restriction to ſNGQPGTGXKUGFTGVWTPYKNNPQVCRRN[VQTGXKUGF returns under section 20(4)(c) i.e. furnishing the revised returns as per any intimation u/s. 63. /QTGVJCPQPGTGXKUGFTGVWTPECPDGſNGFWPFGT this category. provide for fresh assessment order, after cancellation of order u/s. 23(5) within a period of 18 months. D. Amendment to section 28 of MVAT Act D.1 This section refers to classification of turnover. The entire section is substituted to enable the Sales Tax Authorities to pass the order in Appeal or review, if the order in Appeal or review has the effect that any tax assessed under the MVAT Act or any other Act, should have been assessed under the provisions of any Act other than that under which it was assessed or that the order in appeal or review has the effect of modifying the tax liability under the MVAT Act or any other Act. (For example CST Act) C.2 Section 20(6) provided for mandatory late HGGHQTNCVGſNKPIQHTGVWTPU(QTVJGYQTFUŎŏ VJGYQTFUŎŏ6JKUUWDUGEVKQPUJCNNEQOGKPVQ D.2 In such an eventuality as a consequence force from 1-5-2015 . of such an appeal or review order, the State C.3 Section 23(5) is amended to substitute the Authorities are now empowered to assess YQTFUŎFWTKPIVJGEQWTUGQHCP[RTQEGGFKPIU such turnover or part thereof, or tax liability under this Act, if the prescribed authority is under the MVAT Act in accordance with such UCVKUHKGFŏD[VJGYQTFUŎYJGTGVJGRTGUETKDGF allowance or disallowance of such claims and the time limit for such action is provided as CWVJQTKV[JCUTGCUQPVQDGNKGXGŏ 5 years from the date of the order in appeal and The students of law would appreciate the review. substitution which will make it mandatory to record the reason to believe by the Assessing D.3 The proviso added to this substituted Officer, before taking action under this sub- section states that if the assessment is already section. made, the assessment shall be modified after C.4 Another amendment is made in sec. 23(5) giving the dealer a reasonable opportunity of to provide time limit to the assessment under being heard, notwithstanding any provision this sub section. The second proviso added to regarding limitation applying to such Assessment period. this sub-section reads as follows: Provided further that, in case a notice is issued under this sub section, on or after the first April 2015, no order of Assessment under this Sub-section shall be made after the expiry of 6 years from the end of the year, containing the transaction or as the case may be claim. C.5 Section 23(11) which refers to cancellation of order, will now be applicable to the orders passed under section 23(5). Accordingly amendments are made in section 23(12) to ML-437 E. Amendment to Interest Provision Sec. 30 E.1 Second proviso is added to section 30(2) to provide for levy of interest if a dealer files annual revise returns, as per Section 20(4)(b) or section 20(4)(c) . The interest shall be payable on excess amount of tax, as per the annual revised return as per the table provided under this new proviso. | The Chamber's Journal | $SULO| 145 ¯ ,1',5(&77$;(6ă9$78SGDWH Table Registration status in the year for which annual TGXKUGFTGVWTPKUſNGF Interest to be computed from (1) (2) (a) &GCNGTJQNFKPIEGTVKſECVGQHTGIKUVTCVKQPHQTYJQNG 1st October of the year, to which the year annual revised return relates (b) %GTVKſECVGQHTGIKUVTCVKQPITCPVGFGHHGEVKXGHTQOCP[ 1st October of the year, to which the date up to the 30th September of the year to which annual revised return relates revised return relates (c) %GTVKſECVGQHTGIKUVTCVKQPECPEGNNGFGHHGEVKXGQPCP[ 1st October of the year, to which the date after the 30th September of the year to which annual revised return relates revised return relates (d) %GTVKſECVGQHTGIKUVTCVKQPITCPVGFGHHGEVKXGHTQOCP[ Effective date of registration date after the 30th September of the year to which revised return relates (e) %GTVKſECVGQHTGIKUVTCVKQPECPEGNNGFGHHGEVKXGQPCP[ Effective date of cancellation of date prior to the 30th September of the year to which registration.". revised return relates substituting the word, “Court “with the words Court, Tribunal.This section is further amended to give effect to the amendments by way of new subsection 44(4A) . F. Special provisions for amalgamation / merger / demerger – Sec. 44 Sub-section 4(aA) is added to the section 44 relating to special provision regarding liability to pay tax in certain cases. This subsection provides that in case of amalgamation , merger or demerger , the transfer of business shall be deemed to have taken effect from either of the following dates. i. The date of the order of HC, Tribunal or the Central Government G. Amendment to Schedule Entries G1. Sch C-4 is amended. An explanation is added w.e.f 1st April 2005, that for the purpose of this entry, Sewing thread, shall include embroidery thread. Therefore embroidery thread would be Subject to 4% upto 31-3-2010 and 5% thereafter. ii. The date on which the Registrar of Companies notifies the amalgamation, merger or demerger as opted by the Company. G2. Sch C-91 refers to spices: An explanation is added w.e.f 1-4-2005 to clarify that spices shall include , spices in all forms, varieties and mixtures of any of the spices. Therefore the mixture of spices would be subject to 31-3-2010 and 5% thereafter. iii. Corresponding amendments are made in Section 47 of the MVAT Act, by ) #PCOGPFOGPVKUOCFGVQVJG0QVKſECVKQP QH+PFWUVTKCN+PRWVKPVJGPQVKſECVKQP0Q8#6 Or ¯146 | The Chamber's Journal | $SULO | 0/ ,1',5(&77$;(6ă9$78SGDWH H3. Amendment to Sch C: i) Cashew shell, would now be subject to 5% under new entry C-17A. ii) Sch C-29, refers to drugs. Sub entry D is included to subject Guide wire for medical purposes at 5%. iii) H1. In Sch A Entry 6 as it stood originally is renumbered as Sub entry 6A, a new subentry is added. Graph book, laboratory note book, drawing book and workbook would be exempt from tax w.e.f. 1-4-2015. Accordingly these words are deleted from Schedule entry C32. Entry C-70 refers to paper of various types, this entry is now substituted and paper as may be notified by State Govt would be subject to 5%. Accordingly a PGYPQVKſECVKQP0Q8#6%4 Taxation-1 dt. 27-3-2015 is introduced. Various types of papers are now related to the Excise Tariff. The Details of the PQVKſECVKQPOC[DGUGGPQPVJGYGDUKVG iv) H2. Certain entries where the exemption was limited upto 31/3/15, the exemption is extended upto 31-3-2016. This exemption includes; C-107 is amended by inserting, new entry 7A, ladies hand bags and ladies purses would be subject to 5%. v) The concession provided to entry C-108 is extended upto 31-3-2016. This entry included Tea in leaf or powder form , including instant tea . 1505/CR-234/Taxation-1 dt. 1-9-2005 entry 2(5) is amended w.e.f. 1-9-2005, to include along with Desi Loni, White butter. Therefore White Butter would be subject to 4% upto 31-3-2010 and 5% thereafter. H. Amendment by way of separate 0QVKſECVKQP By notification No VAT. 1515/CR-39(1)/ Taxation-1 dt 27-3-2015 , further amendments are made to be effective from 1-4-2015. Entry 9A (Paddy Rice, wheat, pulses flour of wheat,pulses,etc . Entry 51 relating to Papad, gur, chilles, turmeric, vi) corrainder seeds, towels, wet dates, solapuri chaddar, coconut in shell and separated kernel, etc A-59 Raisins and Currants. H-3 A new Entry is included in Sch A, as 12A to exempt Drugs for vii) VTGCVOGPVQHECPEGTCUOC[DGPQVKſGFHTQOVKOG VQVKOGD[VJG5VCVG)QXGTPOGPVKPVJGQHſEKCN gazette. Entry C-108(3) which provided reduced rate of tax for pre laminated particle board, etc. is deleted. Sch C-111 Refers to compact florescent lamps. The word “LED bulbs” are inserted in this entry to make them subject to 5% tax. To believe blindly is to degenerate the human soul. Be an atheist if you want, but do not believe in anything unquestioningly. — Swami Vivekananda ML-439 | The Chamber's Journal | $SULO| 147 ¯
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