Sales Tax Review

April 2008

TRADE CIRCULAR.

No.VAT/AMD-1008/ 1A/Adm-6

Gentlemen/Sir/Madam, 

          The amendments to Maharashtra Value Added Tax Act, 2002 were published by Maharashtra Act No. VIII of 2008 dt. 31^st March 2008.  The amendments are briefly explained below:

2. All the amended sections of this Act except amendment to sub-section (8) of section 29 came into being from the date of this Act i.e. 31^st March 2008   Amendment to section 29(8) shall come into force on such date, as the State Government may by notification in official gazette, appoint.

3. Enhancement of Penalty for not filing of return within prescribed time:

             The section 29(8) of Maharashtra Value Added Tax Act, 2002 is amended for enhancing the penalty provided for failure to file returns within the prescribed time. As per the amendment, if the return is filed before the initiation of the proceedings for levy of penalty, then the penalty shall be levied at rupees five thousand instead of rupees one thousand as provided earlier.  In other cases, the amount of penalty imposable is increased from rupees two thousand to rupees ten thousand.

4. Extension of time limit for assessment under Bombay Sales of Motor Spirit Taxation Act, 1958 and Bombay Sales Tax Act, 1959:

             Section 96(1) of Maharashtra Value Added Tax Act, 2002 has been amended to insert clauses (a-2), (a-3) and (a-4).  These are explained below:

1. As per clause (a-2), if a licensed trader has filed all the statements in respect of the years 2002-03 or 2003-04 by 30^th September 2004, then in such unassessed cases, the assessment order under section 6(3) or 6(4) Motor Spirit Taxation Act, 1958 can now be passed on or  before 31^st March 2009.

2. As per clause (a-3), if a licensed trader has filed all the statements in respect of the year 2004-05 by 30^th of September 2005, then in such unassessed cases, the assessment order under section 6(3) or 6(4) of Motor Spirit Taxation Act, 1958 can now be passed on or before 31^st March 2010.

3. As per clause (a-4), date for making assessment order for the periods 2002-03 and 2003-04 under section 33(3) or 33(4) of Bombay Sales Tax Act, 1959 has been extended upto 31^st March 2009.  For the period 2004-05, assessment order can now be passed on or before 31^st March 2010.

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 the members of your association.

 Yours faithfully,
(SANJAY BHATIA)
Commissioner of Maharashtra State,
Mumbai.