,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
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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).
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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
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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.
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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
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QH+PFWUVTKCN+PRWVKPVJGPQVKſECVKQP0Q8#6
Or
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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
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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)
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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
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