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Sales Tax Practioners' Association of Maharashtra

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Sales Tax Review

May 2008

TRADE CIRCULAR.

No.DC(Adm-6)/A & R/2008/Notification/

Trade Cir. – 18 T of 2008

Mumbai Dt. : 12.05.2008
   
Sub:

Extension of Exemption/Concession of tax on essential commodities & articles i.e. Solapuri Chaddars and Towels and amendment in Entry Tax on Goods.
 Ref:

1) Notification No. VAT/1508/CR-44/Taxation-1, dt.29.3.2008

2) Notification No. VAT/1508/CR-44A/Taxation-1, dt. 29.3.2008

3) Notification No. ENT/2008/CR-50/Taxation-1, dt. 29.3.2008

Gentlemen/Sir/Madam, 

Essential commodities covered under some entries of schedule ‘A’ were tax free up to 31st  March 2008 and contra entries of these commodities were to be taxable @ 4% from 1st April 2008 under schedule entry ‘C’ and 12.5% under schedule entry ‘E’.   Similarly some entries in schedule ‘C’ were to be taxable @ 4% up to 31st March 2008, which were to be taxable @ 12.5% from 1st April 2008.

  1. By virtue of amendment to the schedule by notification referred to (1) above, the benefit of exemption/concessional rate is extended as under:

  1. Following entries will continue to be in A schedule and thus the commodities will be tax free upto 31st  March 2010.

(i) Entry 9-A of schedule ‘A’

a) Paddy, rice, wheat and pulses in whole grain, split or broken form;

 

b) the flour of wheat and rice including atta, maida, rawa & suji, whether sold singly or in mixed form

 

c) the flour of pulses including besan when sold singly and not mixed with flour of other pulses or cereals

(ii) Entry 51 of schedule ‘A’

i) Papad (except when served for consumption)
ii)    Gur

 

iii) Chillies, turmeric and tamarind whole, powdered or separated but excluding chilly seed and tamarind seed when sold in separated form;

 

iv) Coriander seeds, fenugreek and Parsley (Suva) whole or powdered;

 

v) Coconut in shell and separated kernel of coconut, other than copra

 

vi)   Solapuri chaddars

 

vii)  Towels

 

viii) Wet dates

  1. Commodities covered by the following entries will be taxable @ 4% w.e.f. 1st April 2010.

(i) Entry 20 of schedule ‘C’

i) Paddy and rice, wheat and pulses in whole grain, split or broken form

(ii) Entry 37 of schedule ‘C’

i) The flour of wheat and rice including atta, maida, rawa and suji, whether sold singly or in mixed form

 

ii) The flour of pulses including besan, whether sold singly or in mixed form

(iii) Entry 40 of schedule ‘C’

Gur, jaggery and edible variety of rub gur

(iv) Entry 91 (b) of schedule ‘C’

Chillies, turmeric, tamarind, coriander seeds, fenugreek and parsley (suva), whether whole or powdered

(v) Entry 106 (b) of schedule ‘C’

Coconut in shell and separated kernel of coconut (excluding Kopra)

(vi) Entry 109 of Schedule ‘C’

Papad except when served for consumption

  1. Commodities covered by entry 108(1)of schedule C namely:-

  1. Dry fruits including raisins and currants

  2. Tea in leaf or powder form including instant tea,

sold during the period of 1st April 2008 and ending on 31st March 2010 will be taxable @ 4%.

  1. Timber sold during the period starting on 1st April 2008 and ending on 31st March 2009 would be taxable @ 4% being covered under entry 108(2) of schedule ‘C’.
     

  2. The following commodities will be taxable @ 12.5% w.e.f. 1st April 2010

  1. Wet dates,

  2. Dry fruits including raisins and currants

  3. Tea in leaf or powder form including instant tea

  1. Solapuri chaddar and Towels covered under notification No. 1506/CR-60A/Taxation-1, dt.27th April 2006, at serial No. 11 and 13 of the schedule appended to the said notification were to be taxable @ 4% under schedule entry C-81 (b) w.e.f. 1st April 2008.

    By virtue of amendment to the Notification No.1506/CR-60A/Taxation-1, dt.27th April 2006 by the   notification referred at serial no. (2) in the reference, applicability of the 4% rate is extended. These articles will be taxable  @ 4% w.e.f. 1st April 2010.

  2. Aviation turbine fuel (Duty paid) when sold within Maharashtra excluding the geographical limits of Brihanmumbai Corporation and Pune district would be taxed @ 4% from the period 1st April 2008 to 31st March 2010 as being covered under entry 11 of Schedule ‘D’.

  3. In addition to this by virtue of the notification at Serial no. (3) in the reference, an amendment is made with effect from 1st April 2008 in the SCHEDULE appended to the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 by virtue of which following entries are added and importers are liable to pay entry tax on them if the import is for consumption or use in Maharashtra @ 12.5% w.e.f. 1st April 2008.

  1. Air-conditioning machines, comprising a motor driven fan and elements for changing the temperature.
     

  2. All types of tiles whether vitrified or not, including those made from cement, ceramic, natural or artificial stones, marble, travertine, alabaster or granite but excluding asphaltic roofing tiles and earthen roofing tiles.

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

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

Yours faithfully,
(A.G.Deshmukh)
Commissioner of Sales Tax (In-charge),
Maharashtra State, Mumbai..

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