April 2007 - STR — Important Trade Circulars

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Sales Tax Review

April 2007

Important Trade Circulars

TRADE CIRCULAR

No. SR. D.C. (A& R)/Adm 3/ Noti./2007/9

Trade Circular No. 35 T of 2007	Mumbai, Dt : 26.04.07

Sub:	Notifications issued by the State Government from 19th April 2007 under The Maharashtra Value Added Tax Act, 2002.
Ref:	Notification No. VAT-1505/C.R.192/Taxation-1, dated28th July 2006..
	Notification No. VAT-1505/C.R.192/Taxation-1, dated 30^th December 2006.
	Notification No. VAT.1505/CR-192/Taxation 1, dated 19^th April 2007.

Gentlemen/Sir/Madam,

Certain sales to State Government and Central Government were made liable to tax @ 4% by the notification referred to in (1) and (2) above. The Parliament has now passed the Taxation Laws (Amendment) Act, 2007, which has amended the Central Sales Tax Act, 1956. The amendment withdraws the facility of concessional inter-State purchase @ 4% by issuing a declaration in Form D which was earlier available to the Union Government and the State Governments. The State Government has, now withdrawn with effect from 1^st May 2007 the concessions given to Central and State Government earlier granted by notification referred to at (1) and (2) above.

The State Government has now issued a new notification referred to in (3) above, in superssion of the earlier notification No. VAT-1505/CR-192/Taxation-1, dated the 30^th December 2006, and exempted the following classes of sales with effect from 1^st May 2007 from payment of tax in excess of four percent subject to the conditions and restrictions given in the table below.

Sr.No.	Class or Classes of Sales	Conditions
1)	Sales by a registered dealer excluding the sale of motor spirits covered by entry Nos. 5 to 10 of Schedule–D appended to the Act. a) to a registered dealer being an electric power generating company as defined in the Electricity Act, 2003, or b) to a registered dealer holding a licence for transmission of electricity under the Electricity Act, 2003, or c) to a registered dealer holding a licence for distribution of electricity under the Electricity Act, 2003.	(i) The goods purchased shall be used in the generation, transmission or distribution of electricity. (ii) The authorized officer of the organisation referred to in column (2) shall, by the end of April, furnish to the Commissioner, a Statement of accounts of purchases effected in the immediate preceding financial year, in the proforma appended to this notification. (iii) The purchasing organisations referred to in column (2) shall be certified by the Commissioner on application and the said certificate shall be liable for cancellation on breach of any of the conditions.
2)	Sales by a registered dealer, to the Mahanagar Telephone Nigam Limited or Bharat Sanchar Nigam Limited, or any other telephone service provider holding a licence granted under the Indian Telegraph Act, 1885 (13 of 1885) or Indian Wireless Telegraphy Act, 1933 (17 of 1933) to establish, maintain and operate telephone services upto the subscriber’s terminal connection, except the motor spirits covered by entry Nos. 5 to 10 of Schedule-D appended to the Act.	(i) The goods purchased shall be used by the purchaser in the generation,transmission, distribution or reception of telecommunication signals (ii) The authorized officer of the organisation referred to in column (2) shall, by the end of April, furnish to the Commissioner, a Statement of accounts of purchases effected in the immediate preceding financial year, in the proforma appended to this notification. (iii) The purchasing organisations referred to in column (2) shall be certified by the Comissioner on application and the said certificate shall be liable for cancella- tion on breach of any of the conditions.