Sales Tax Review

September 2007

TRADE CIRCULAR.

No.Sr. DC(A&R)/Adm-3/Notification/2005

Gentlemen/Sir /Madam,

            Essential commodities covered under some entries of schedule ‘A’ were tax free upto 30th September 2007 and contra entries of these commodities were to be taxable @ 4% From 1.10.2007 under schedule ‘C’. Similarly some entries in schedule ‘C’ were to be taxable @ 12.5% from 1.10.2007, which were taxed @ 4% upto 30.9.2007. 

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

1. following entries will be in A schedule and thus the commodities will be tax free upto 31st March 2008
    

   (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 from:
   		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

2. Commodities covered by the following entries will be taxable @ 4% w.e.f. 01/4/2008

   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 from
   iii)	Entry 40 of schedule ‘C’		Gur, jaggary and edible varieties 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 C-109 of Schedule ‘C’		Papad except when served for consumption

3. The following, commodities will be taxable will be taxable @ 12.5% w.e.f. 01-04-2008

1. Wet dates,

2. Dry fruits including raisins and currants

3. Tea in leaf or powder form including instant tea

4. Solapuri chaddar and Towels covered under notification No. 1506/CR-38A/Tax.-1 dt.29^th March 2007, at serial No. 11 and 13 to the schedule were to be taxable @ 4% under schedule entry C-81 (b) w.e.f.  01/10/2007.

By virtue of amendment to the schedule by the notification referred at serial no. (2) above, effect of the 4% rate is extended. These articles will be taxble @ 4% w.e.f.. 01.4.2008.

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

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

Yours faithfully,

( Sanjay Bhatia)

Commissioner of Sales Tax,

Maharashtra State, Mumbai