Sales Tax Review

May  2007

Important Trade Circulars

No. VAT/TIN/1007/121/Adm-3

Gentlemen/Sir/Madam,

The Sales Tax Department had undertaken an exercise of grant of fresh registration certificates as provided under section 17 of the Maharashtra Value Added Tax Act (MVAT Act).  All registered dealers who were holding valid registration certificates as on the 1^st December 2005 were required to obtain in lieu of the existing certificate of registration, a fresh certificate of registration as provided in that section.  The existing certificates of registration were cancelled with effect from the 1^st April 2006 and fresh certificates have since been issued. The registration certificates of those dealers who did not apply for grant of fresh certificate of registration before 31^st December 2005 were cancelled with effect from the 1^st January 2006.

2. A number of dealers had applied for grant of registration certificate under section 16 of the MVAT Act  during the period 1^st December 2005 to 31^st March 2006. At the time of application, these applicants were provided with a Pin Code based registration certificate number which they could use for their transactions of sales. The applicants were also informed the date of effect of registration as fixed in accordance with Section 16 of the said Act read with Rule 8 of the Maharashtra Value Added Tax Rules, 2005.  The regular TIN certificates of registration will soon be issued to the applicants who have so applied during the period, the 1^st December 2005 to 31^st March 2006.  The date of effect of registration printed on the certificate will be the same as communicated to the applicants earlier.  However, the old style Pin Code based certificate numbers earlier communicated to the applicants will not be printed on these certificates. Instead, the new TIN will be printed in the place provided on the certificate for the registration certificate number.  The new TIN for these respective dealers can be viewed on the website –  www.vat.maharashtra.gov.in

3. It is likely that some of such dealers in their transactions with other dealers would have used the old registration certificate numbers communicated to them earlier.  It is now clarified that the use of such old style pin code based number on invoices and other documents would be considered as legitimate and regular in the hands of the seller and the purchaser for all purposes including collection of tax and claim of set-off.  Tax Payers Identification Number (TIN) have come into operation from 1^st April 2006 which were also displayed on web-site from April 2006.  Use of PIN code based MVAT/ CST Registration Number in Returns, Tax Invoice and other statutory forms must be discontinued by 31^st May 2007 and if used after the said date, i.e., 31^st May 2007, they will be liable for penalty.  In case any dealer has not received any registration certificate bearing TIN by 31^st May 2007, they should contact respective registering authority or view it on the website.

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.