Maharastra Value Added Tax Matters: January 2011

Saturday, January 8, 2011

Maharastra Value Added Tax Matters: Due Date for MVAT audit in form 704 for financial ...

Maharastra Value Added Tax Matters: Due Date for MVAT audit in form 704 for financial ...: "TRADE CIRCULARNo. VAT/ AMD-1009/IB/ADM-06 ,Dt : 28th January, 2010.Trade Cir. 5 T of 2010, Mumbai Sub: Extension of date for Submi..."

Filing of electronic returns

TRADE CIRCULAR
To
..........
..........
No.VAT-2008/H.Q.2/ADM-7/PSI-104/B- Mumbai, Dt.18.11.2008

Trade Cir. No.40 T of 2008.

Sub: Filing of electronic returns.

            Ref: (1) Notification No. VAT/AMD-1007/1B/Adm-6 dt. 14.03.2008
                (2) Notification No. VAT/AMD-1007/1B/Adm-6 dt. 19.04.2008
                  (3) Notification No. VAT/AMD-1007/1B/Adm-6 dt. 30.08.2008
                  (4) Notification No. VAT/AMD-1007/1B/Adm-6 dt. 16.09.2008
                 (5) Trade Circular No.8T of 2008 dt. 19.03.2008.
                  (6) Trade Circular No. 16T of 2008 dt. 23.04.2008.
                  (7) Trade Circular No.33 T of 2008, dt.30.09.2008.
                  (8) Notification No. VAT/AMD-1007/1B/Adm-6 dt. 18.09.2008.,,

Gentlemen/Sir/Madam,

1. As per Notification No. VAT/ ADM - 1007/ IB/ Adm-6, dated 18th September, 2008, it has been provided that in respect of the periods starting on or after 01.07.2008, the registered dealers holding valid Entitlement Certificates as on 30.09.2008 and who are covered by Package Schemes of Incentives, 1979, 1983, 1988, 1993 or Package Scheme of Incentives for Tourism, 1993 for 1999 shall make the payment of tax or interest if any and file Electronic Return as provided in the said sub rule (5) of the MVAT Act. The process of filing e-returns by such units has already begun. By this time most of the Units must have filed e-return. However, to clarify the provision, this circular is issued.

2. Thus, it has been made mandatory for all the dealers covered under the said Package Schemes of Incentives, to file Electronic Returns.

3. All the dealers are requested to immediately get registered themselves for filing of the return.

4. The deferment / exemption from tax will be admissible in respect of a particular period for which the holder of the Eligibility Certificate and Certificate of Entitlement has filed proper return as prescribed under the Act. Now since submission of return electronically has been made mandatory in respect of dealer covered under the said Package Schemes of Incentives, it may please be noted that if a dealer fails to file such return electronically, then such dealer would not be entitled to such benefit for such period covered by the return. All refund granting authorities are directed to take note of above instructions and refund to such dealers should not be granted unless returns for the said period are filed electronically. All the nodal officers and all the officers handling the Package Scheme of Incentives cases are hereby directed to get such dealers registered for filing of E-Return and monitor the progress thereof.

5. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

6. You are requested to bring the contents of this circular to the notice of the members of your association.

Yours faithfully,

(SANJAY BHATIA) Commissioner of Sales Tax,
Maharashtra State, Mumbai.

Procedure for online submission of application [Statement of Requirement ] for the statutory forms (C/F/H/EI/EII) under the Central Sales Tax Act, 1956 and delivery at the place of business of the dealer.

TRADE CIRCULAR
Dated: 31.03.2009
No. VAT/U.O.R.No. 646/JC(Reg.)
Trade Circular No.12 T of 2009
Sub.: Procedure for online submission of application [Statement of Requirement ] for the statutory forms (C/F/H/EI/EII) under the Central Sales Tax Act, 1956 and delivery at the place of business of the dealer.
----------------------------------------------------------
Extention of date for existing mannual system for accepting applications for declarations prior to 1/04/2008.

Ref.: 1. Trade Circular No.4T of 2006 dated 09/01/06.
               2. Trade Circular No.10T of 2006 dated 29/03/06.
               3. Trade Circular No.17 T of 2006 dated 28/06/06.
               4. Trade Circular No.1 T of 2008 dated 25/01/08.
               5. Trade Circular No.15 T of 2008 dated 19/04/08.
6. Trade Circular No.2 T of 2008 dated 23/01/09.
   Dear Sir/Madam,
The representation are received from the organisations for extention of time for applying for declarations prior to 31/03/08. The request has been considered and the date is extended as follows:-
Any application seeking declarations for the period prior to 01/04/2008 may be made as per the existing manual system (on CD) or available on new online system. However such application shall be made prior to 30/06/09. It may please be noted that the declarations prior to period 01.04.2008 will not be issued after 01/07/2009.
This circular cannot be made use of for legal interpretation of provisions of law. If any member of the trade has any doubt, he may refer the matter to this office for clarification.
You are requested to bring the contents of this circular to the notice of all the members of your association.
Yours faithfully,

(SANJAY BHATIA)
Commissioner of Sales Tax,
Maharashtra State, Mumbai

Periodicity of return filing for the period 01.04.09 to 31.03.10

No. VAT/ JC MAHAVIKAS/

Trade Cir. No.26T of 2009 Dated: 1st October 2009

Sub: Periodicity of return filing for the period 01.04.09 to 31.03.10

Ref.: List of dealers on the website www.mahavat.gov.in showing periodicity of return filing.

Gentlemen/ Sir/ Madam,

All the dealers are required to file returns due under the MVAT Act, 2002 and CST Act, 1956 as per the provisions of section 20 of the MVAT Act, 2002 and Section 9(2)(A) of the CST Act, 1956 read with Rule 17 and Rule 18 of the MVAT Rules 2005. The periodicity of the return filing as determined by the automated system has been put on the web site www.mahavat.gov.in. Rule 18 and Rule 17(5) provide for the returns to be filed by the dealers under the Package Scheme of Incentives and Rule 17(4) provides for the periodicity of the returns to be filed by the dealers other than the dealers under the Package Schemes of Incentives. The relevant part of the Rule17 is reproduced for reference as under:

“17. Submission of returns.-

(4) Subject to the other provisions of this rule and of rule 18.—

(a) (i) every registered dealer who is a retailer and who has opted for composition of tax under sub-section (l) of section 42 shall file a six monthly return within twenty-one days from the end of the period of six months to which the return relates;

(ii) every registered dealer to whom the Explanation to clause (8) of section 2 applies, if his tax liability during the previous year was rupees one crore or less, shall file an annual return within twenty-one days from the end of the year to which such return relates.

Provided that nothing in this paragraph shall apply to the said registered dealer unless he applies to the Joint Commissioner of Sales Tax (Returns), in Mumbai or as the case may be Joint Commissioner of Sales Tax (VAT Administration) in rest of the State;

(b) every registered dealer to whom clause (a) does not apply and,-
(1) whose tax liability during the previous year was rupees one lakh or less or, as the case may be, who had no entitlement for refund, or
(2) whose entitlement for refund during the previous year was ten lakhs or less, shall file a six-monthly return within twenty-one days from the end of the period of six months to which the return relates.

(i) whose tax liability during the previous year had exceeded rupees ten lakhs or

(ii) whose entitlement for refund during the previous year had exceeded one crore,

shall file a monthly return within twenty-one days from the end of the month to which the return relates.

(d) any other registered dealer shall file a quarterly return within twenty one days from the end of the quarter to which the return relates.

Explanation I.- For the purposes of this rule, the expression “tax liability” in relation to a registered dealer means the total of all taxes payable by him in respect of all his places of business or, as the case may be, all the constituents of his business in the State under the Central Sales Tax Act, 1956 and Maharashtra Value Added Tax Act, 2002 , after adjustment of the amount of set-off or refund claimed by him, if any, under the respective Act.

Explanation II.- For the purposes of this rule the expression “entitlement for refund” in relation to a registered dealer means the net refund payable to him in respect of all his places of business or, as the case may be, all the constituents of his business in the State under the Central Sales Tax Act, 1956 and Maharashtra Value Added Tax Act, 2002, after adjustment of the amount of set-off claimed by him against taxes payable under the said Acts.”

Thus the periodicity of filing of returns of a dealer depends upon tax liability or refund entitlement of the dealer during the previous year. Hence, while fixing the periodicity of the dealer for the period 2009/2010, the total taxes payable net of setoff and refund entitlement shown by the dealer during the year 01.04.2008 to 31.03.2009 as per the returns filed for the periods, as shown in Table below, have been considered.

Returns Periods considered for determination of Tax payable during 2008-2009.

Table - 1

	Form
Monthly	March 08, Ar 08, May 08, June 08, July 08, Sept 08, Oct 08, Nov 08, Dec 08, Jan 09 and Feb 09
Quaterly	Jan-Mar 08, Apr-Jun 08, July-Sept 08, Oct-Dec 08.
Six Monthly	Oct 2007-March 08, Apr-Sept 08

Some of the dealers have represented that the periodicity determined in their case is incorrect. In order to address such representation the dealers whose periodicity for the period Apr 2009 to March 2010 do not match with the system generated periodicity as displayed on the web www.mahavat.gov.in, are requested to approach the Joint Commissioner of Sales Tax, In charge of Return Branch pertaining to their location and establish their actual periodicity of filing of returns for the period 2009/2010 with documentary evidence.

The joint commissioner of Sales Tax In Charge of return Branch pertaining to a particular location have already been instructed to verify the correctness of dealer’s claim of periodicity in such cases and inform Joint Commissioner, Mahavikas on or before 1^st of every month in respect of eligible changes in periodicity of return filing for the period 01.04.2009 to 31.03.2010

This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

You are requested to bring the contents of this circular to the notice of all the members of your association.

Yours faithfully,

(Sanjay Bhatia)

Commissioner of Sales Tax

Maharashtra State, Mumbai.

Profession Tax Enrollment Incentive Scheme 2009

RADE CIRCULAR
Date: 03/11/2009
No.PFT/2009/P.T./Adm-29/.../B
(Trade Cir.No.30T of 2009)

Sub: Profession Tax Enrollment Incentive Scheme 2009 The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. Ref: 1. Budget Speech by Hon'ble Finance Minister.
2. Notification published in the Govt. Gazette Government Resolution No. P.T.-I 109/C.R. 35/Taxation-3, Mantralaya, Mumbai-400 032 dated 29'" July, 2009.
Gentlemen/Sir/Madam,

The Maharashlra State Tax on Professions, Trades, Callings and Employments Act, 1975 (Profession Tax Act) is being implemented in the State w.e.f. 1st April, 1975.

Under the Act, every self employed person engaged in any profession, trade, callings and employment is required to obtain Enrollment Certificate and pay profession lax yearly as per the provisions of the Act. The Government has observed that, many persons/ firms/ societies/ institutions etc. despite being liable to pay Profession Tax have failed to obtain enrollment certificate and arc not paying profession tax. The Act provides for levy of penalty on such "persons" for failure to get enrolled.

2. The Government wishes that un-enrolled self employed persons should come forward, get themselves enrolled, and should pay Profession Tax due from them.

3. Accordingly, in order to provide incentive for enrollment, the Government of Maharashtra issued a resolution referred to at No.2. The aforesaid resolution is available on website www.mahavat.gov.in. This resolution has outlined the scheme of incentives and delegated to Commissioner of Sales Tax the powers to frame the procedure and to implement the scheme. Accordingly this circular is being issued. The salient features of the scheme are as under.

4. Scheme
4.1 Duration of Scheme:
The Amnesty Scheme is open for the period from 1st August, 2009 to 31st March, 2010 and is called "Profession tax Enrollment Incentive scheme 2009".

4.2 "Persons" eligible for Amnesty Scheme are:
All persons/ firms/ establishments who are liable but not yet enrolled under the Act.

4.3 Benefits under the scheme:
a) For persons/ firms/ establishments liable for enrollment during any period prior to 1.4.05 and yet not enrolled.
i) Tax, interest & penalty in respect of periods prior to 1/04/2005 would be waived in full.
ii) The amount of penalty on the tax payable for period 1.4.2005 onwards would be waived in full.
b) Person/firms/establishments liable on or after 1.4.05 but not enrolled
i) The amount of penalty from the year of liability till the date of enrollment would be waived in full.

4.4 Conditions of Amnesty:
i) Persons / firm / establishment not holding Enrollment certificate must apply for Enrollment during the period of said scheme.
ii) The tax payable under the Act for the periods 1st April, 2005 or from the date of liability where such (.late is after 1.4.2005 to 3 Is1 March. 2010 along with interest on it is to be paid by the self employed persons during the Amnesty period.
iii) Under no circumstances the amount paid by the applicant prior to 31st July 2009 shall be adjusted towards the amount to be paid as per the said scheme. Similarly no refund will be granted for the amount paid prior to the said scheme.

4.5 Procedure:
(1) Unenrolled persons are required to apply for EnroIIment Certificate (E.C.) in form II under Maharashtra Profession Tax rules. The application form duly filled and signed should be submitted to Profession Tax registration officer along with the proof of address and the details of profession/Trade/Calling/employment. After entering the mandatory fields in the system, a registration officer will generate erollment number and provide the same to the applicant for the purpose of payment of requisite tax and interest in the bank/ treasury. At this stage the certificate shall not be issued but the number is given to applicant only to facilitate payments.

(2) On obtaining Enrollment number applicant should make the payment of tax and interest as applicable, in full.

(3) An application for the scheme in prescribed format (Annexure-1) along with the proof of payment of requisite amount has to be filed before the registration authority. Upon receipt of the said application, the registering authority will verify the correctness of application and payment made by the applicant. If the registering authority is satisfied that the application is in order as per the scheme, he will issue an acknowledgement to the applicant provided under annexure-I. The registering authority shall not issue any other communication separately.

(4) In case after generating EC number, applicant does not pay the full amount of tax and interest payable within the prescribed period, enrollment certificate will be generated as per the actual liability i.e. without giving him the benefit of the scheme. Full payment of tax and interest with in the prescribed time is the prerequisite for incentive under this scheme.

(5) After completing all the above/referred formalities, registration officer will provide a copy of enrollment certificate to the applicant.

(6) In ease of any difficulty, the applicant may contact the administrative Joint Commissioner (P.T.) or Joint Commissioner of Sales Tax (Adm) VAT of the respective Divisions.

If any member of trade has any doubt, he may refer the matter to this office for further clarification.

You are requested to bring the contents of this circular to the notice of all the members of your Association.

Yours faithfully

(Sanjay Bhatia)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.

ANNEXURE- I

Application form for Profession Tax Enrollment Incentive Scheme- 2009

Date: ________________

1. Name of the Applicant
2. Address:
3. E.C.No.

To,
The Profession Tax Officer ( ),
Registration

Sub: Amnesty Scheme 2009 under Profession Tax Act, 1975.

Ref: Government Resolution No. P.T.-l 109/C.R. 35ATaxation-3, Mantralaya, Mumbai-400 032 dated 29th July, 2009.

Sir,

1. I _________________________ of M/s___________________________________ am unenrolled person liable to pay tax under the said Act.

2. I hereby make an application for availing of the said incentive scheme-2009 declared by Government of Maharashtra under Government Resolution referred above. The terms and conditions laid in the said amnesty scheme are fully acceptable to me.

3. The details of arrears are as follows

TABLE

Sr.No.	Period	Amount Payable			Amount Paid			Bank and Branch/Treasury	Dt. of payment
-	-	Tax	Interest	Total	Tax	Interest	Total	-	-
1	2	3	4	5	6	7	8	9	10
.	.	.	.	.	.	.	.	.	.

4. I hereby enclose self-attested copies of the chalan of payment made by me as detailed above.

Kindly consider my request for amnesty under the said incentive scheme-2009.

Place:
Yours faithfully,
Date:
(Signature, Name and Designation)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ACKNOWLEDGEMENT

E.C. Number:_______________________

Received your application under Profession Tax Enrollment Incentive Scheme-2009. As you have complied to the conditions under the above scheme, your application is accepted.

Date :

Profession Tax Officer
Registration

Due Date for MVAT audit in form 704 for financial year 2008-09 extended to 31st March 2010

TRADE CIRCULAR

No. VAT/ AMD-1009/IB/ADM-06 ,

Dt : 28th January, 2010.

Trade Cir. 5 T of 2010, Mumbai

Sub: Extension of date for Submission of Audit Report for the year 2008-09.

Ref.:

1. Notification No. VAT/AMD-1009/IB/ADM-6 dated 21st August 2009.

2. Notification No. VAT/AMD-1009/IB/ADM-6 dated 26th August 2009.

3. Trade Circular No. 27T of 2009 dated 1st October 2009.

4. Representations received from various Trades and Associations.

5. Letter received from Finance Department bearing No. VAT-1510 / C . R.-17 / Taxation-1 dated 28th January 2010.

Gentlemen/Sir/ Madam,

You may recall that the existing Form-704 was replaced by New Form-704 by notification cited at Ref.-2. A notification cited at Ref.-1 was issued and it was made mandatory for all dealers to submit Audit Report for year 2008-09, electronically. Further, vide Trade Circular cited at Ref.3 this office had explained the procedure for filing Form-704 electronically. The date for filing Form-704 is 31st January, 2010.

2. Representations from various Trades and Associations have been received with a request to extend the due date for submission of Audit Report in Form-704 for the year 2008-09. It was stated that this being the first year of e-filing of Audit Report, dealers as well as Auditors need more time to accustom with new procedure. The issue has been examined. The matter was referred to the Finance Department for consideration.

3. The Finance Department, Government of Maharashtra has examined and considered aforesaid representations. Accordingly, it has been decided to extend the due date for submission of the Audit Report in Form-704 to 31st March 2010.

4. In view of this the last date for submission of Audit Report in Form-704 for the period 2008-09 shall be the31st March 2010. Dealers shall be required to submit “the Statement of Submission of Audit Report in Form-704? along with required documents on or before 10th April 2010.

5. In order to avoid initiation of penalty proceedings, it is mandatory for the dealer to upload Audit Report in Form-704 on or before the 31st March 2010 and submit requisite documents (to authorities referred in Para 4(iii) of the Trade Circular dated 1.t October 2009 No. 27T2009) on or before 10th April 2010.

6. For removal of doubts, it is hereby clarified that if any additional amount becomes payable as a result of Audit findings and dealer files revised return then the interest shall be calculated as per provisions of the section 30(2) of the MVAT Act, 2002. In other words, this extension, in no way affects the liability to pay interest as per provisions of section 30(2) of the MVAT Act, 2002.

7. Needless to state that no further extension shall be provided for uploading the Audit Report or submission of requisite documents.

8. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

9. You are requested to bring contents of this circular to the notice of the members of your association.

Yours faithfuly,

(Pramod Nalawade)

Addl. Commissioner of Sales Tax (Est.)

Maharashtra State, Mumbai.

No.VAT/AMD-1009/1B/ADM-6 Mumbai, Dt. 28th January, 2010.

Trade Cir. No.5 T of 2010

1. Copy forwarded to:

(a) All Addl. Commissioners of Sales Tax in the State.

(b) All Joint Commissioners of Sales Tax in the State.

(c) The Joint Commissioner of Sales Tax (Mahavikas) with request to upload this Trade Circular on the Departments web-site.

(d) All Sr. Dy. Commissioners of Sales Tax in the State.

(e) All Dy. Commissioners of Sales Tax in the State.

(1) All Asstt. Commissioners of Sales Tax in the State.

(g) All Sales Tax Officers in the State.

2. Copy forwarded with compliments for information to:

(a) The Officer on Special Duty, Finance Department, Mantralaya, Mumbai.

(b) The Under Secretary, Finance Department, Mantralaya, Mumbai.

3. Copy to all Desks and Desk Officers in the office of the Commissioner of Sales Tax, Maharashtra State, Mumbai.

Rate of tax, Set-off on Timber for the period 1.04.2009 to 30.06.2009 – Clarification

Gentleman/Madam,

You are aware that rate of tax on timber was reduced to 4% in the Budget Speech of Hon’ble Finance Minister, Maharashtra for the year 2008-09. This reduction in rate has been made with retrospective effect from 1^stApril 2009. The Gazette Notification for the amendment was published on 1^st July 2009.

2. Prior to this, the trade was informed vide Trade Circular No.l3T of 2009 dated 15^th April 2009 that the rate of tax on timber from 1^st April 2009 was 12.5% and the trade was asked to collect and pay tax accordingly. After the retrospective amendment in the Budget 2009-10, queries have been received from trade regarding tax already collected and paid or set-off already claimed and the rate of 12.5% for the intervening period from 1^st April 2009 to 30^th June 2009. In this respect following instructions are now issued.

i) Tax on sale of timber will be payable at the rate of 4% from 1.4.2009.

ii) Where the dealers have collected tax at the rate of 12.5% on their sales, they may issue credit notes to the purchasers for the difference of 8.5% and file revised returns for the period for which taxes were collected and paid at higher rate. The dealers who have collected tax at the rate of 12.5% but do not issue credit notes and file revised returns, shall be liable for forfeiture to the extent of excess tax collected by them.

iii) Purchase of timber will be eligible for set-off at the rate of 4% i.e. the scheduled rate of tax irrespective of the actual tax collection in their purchase invoices. Dealers who have claimed set-off at higher rate of 12.5% in their returns for the period April to June, are required to revise their returns accordingly.

3. Forest department selling timber by auction may have collected taxes at the rate of 12.5% on sales during this period. They should file revised returns for the periods for which the taxes are collected at higher rate and refund the excess tax collected from the purchaser. In case the taxes are paid by book adjustment by the department and cannot be refunded to the purchaser, the department should submit transaction wise statement of such tax collection. This excess collection shall be liable for forfeiture. Persons from whom tax was so collected at higher rate can claim refund u/s 32(6) of MVAT Act.

4. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

5. You are requested to bring the contents of this circular to the notice of all the members of your association.

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Saturday, January 8, 2011