Law Updates

Notification

FINANCE DEPARTMENT
Mantralaya, Mumbai 400032, dated the 31^st October 2007 

MAHARASHTRA VALUE, ADDED TAX ACT, 2002. 

        No. VAT–1507/C.R. 17/Taxtion – 1.- Whereas the Government of Maharashtra is satisfied that circumstances exist which render it necessary to take immediate action further to amend the Maharashtra Value Added Tax Rules, 2005 and to dispense with the condition of previous publication thereof under the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005) ; 

        Now, therefore, in exercise of the powers conferred by sub-sections (1) and (2) reas with the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 and of all other powers enabling it in this behalf, the Government of Maharashtra hereby, makes the following rules further to amend the Maharashtra Value Added Tax Rules, 2005, namely :- 

1. These rules may be called the Maharashtra Value Added Tax (Second Amendment ) Rules, 2007.

2. In rule 8 of the Maharashtra Value Added Tax Rules, 2005 ( hereinafter referred to as “the principal rules”), In sub-rule (9), the words “if any,” shall be deleted.

3. In rule 10 of the principal rules, in sub-rule (3) for the words, figures and brackets “the provisions of  rule 12 of sub-rule (4) of rule 73”, the words, brackets and figures “the provisions of entry (4) of the TABLE appended to sub-rule (2) of rule. 73” Shall be substituted.

4. In rule 11 of the principal rules,-

1. for sub-rule (4) the following shall be substituted, namely:-

“(4) Where the registration of a dealer is to be cancelled under first or second proviso to sub-section (6) of section 16, the Commissioner shall after giving the dealer a reasonable opportunity of being heard, cancel the registration by an order in writing with effect from the date,-

1. where the registration is to be cancelled under the first proviso, the Commissioner may fix the data on which the business has been discontinued or transferred or disposed off, as the case may be, and
    

2. where the registration is to be cancelled under the second proviso, the data on the certificate of registration issued.”

2. In sub-rule (5), the words “the first proviso to” shall be deleted;
    

3. after sub-rule (5) the following shall be added, namely :-
   
   “(6) The notice for the purposes of the second proviso to sub-section (6) of section 16 shall be in Form 109.”

5. In rule 16 of the principal rules, sub-rule (3) shall be deleted.
   
    

6. In rule 17 of the principal rules, in sub-rule (4), -

1. in clause (b), -

1. in sub-clause (i), for the letters and figures “Rs. 36,000” the words “rupees one lakh” Shall be substituted with effect from 1^st April 2008 ;   
      

2. in sub-clause (ii), for the letters and figures “Rs. 36,000” the words “ten lakhs” shall be substituted with effect from 1^st April 2008 ;

2. in clause (c), -

1. in sub-clause (i), for the letters, figure and word “Rs. 1 lakh “the words “rupees ten lakhs” shall be substituted with effect from 1^st April 2008;

2. in sub-clause (ii), for the letters, figure and word “Rs. 1 lakh “the words “one crore” shall be substituted with effect from 1^st April 2008.

7. In rule 18 of the principal rules, -

1. in sub-rule (1), for the words “twenty five days” the words “twenty one days” shall be substituted ;

2. in sub-rule (3), in clause (a), after the words “Certificate of Entitlement” the brackets words and figures “(excluding the Certificate of Entitlement granted under the Power Generation Promotion Policy, 1998)” shall be inserted ;

8. In rule 45 of the principal rules, in sub-rule (2), after the words “composition money,” the words “deposit paid towards voluntary registration” shall be inserted.
    

9. In rule 53 of the principal rules, -

1. in sub-rule (1), for the words “four per cent.” the words “three per cent.” shall be substituted and shall be deemed to have been substituted with effect from the 1^st April 2007;
    

2. In sub-rule (2), -

1. in clause (a), for the words ‘four per cent.” the words. “three per cent.” shall be substituted and shall be deemed to have been substituted with effect from the 1^st April 2007.
    

2. In clause (b), for the words “four per cent” the words. “three percent” shall be substituted and shall be deemed to have been substituted with effect from the 1^st April 2007;

3. in sub-rule (3), -

1. for the words “four per cent.” the words “three per cent.” shall be substituted and shall be deemed to have been substituted with effect from the 1^st April 2007.

2. In the Explanation, -

1. in clause (a), the words and letter “are the goods covered by any entry in Schedule B” shall be deleted ;
    

2. Clause (b), shall be deleted

4. in sub-rule (4), in clause (b), for the figures, letters and word “21^st June 2006” the figures, letters and word “20^th June 2006” shall be substituted and shall be deemed to have been substituted with effect from the 8^th September 2006 ;
    

5. in sub-rule (6), after the words, “to claim set off only” the words “on the purchases of plant and machinery if the dealer has treated the plant and machinery as capital assets or” shall be inserted with effect from 8^th September 2006 ;
    

6. in sub-rule (7A), for the figures and words “4% of the purchase price” the words “three per cent. of the purchase price” shall be substituted and shall be deemed to have been substituted with effect from the 1^st April 2007;
    

7. After sub-rule (7A), the following shall be inserted, namely:-
   
   “(7B) If the claimant dealer is holding a license for transmission or, as the case may be, for distribution of electricity under the Electricity Act, 2003, then in respect of any period starting on or after the 1^st April 2005 and ending on the 31^st March 2007, an amount equal to four per cent. of the purchase price of the goods purchased by him for use in the distribution or transmission of electricity (including the goods treated as capital assets) and an amount equal to three per cent. of the said purchase price in respect of any period starting on or after the 1^st April 2007, shall be reduced from the amount of set-off otherwise available in respect of the said purchase of goods including goods treated as capital assets.”

10. In rule 54 of the principal rules, -

1. in clause (e), after the words “Entitlement Certificate” the following words and figures shall be added, namely :-
   
   “except the Entitlement Certificate under the New Package Scheme of Incentive for Tourism Projects, 1999”;
    

2. in clause (f), in sub-clause (i), after the words “credit of duty entitlement pass book” the words , “Duty free Replenishment Certificate” shall be inserted.
    

3. In clause (j), after the words “purchases made” the words, figures and letters “on or after the 20^th June 2006” shall be inserted;
    

4. After clause (k), the following clause shall be added, namely :-
   
   “(1) purchases of office equipment, furniture, fixture and electrical installation by a claimant dealer during the period commencing from the 1^st April 2005 and ending on the 7^th September 2006 if such goods purchased are treated by the claimant dealer as capital assets and the claimant dealer is not engaged in the business of transferring the right to use the said goods (whether or not for a specified period) for any purpose.”

11. In rule 55 of the principal rules, -

1. in sub-rule (1), for clause (a), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 8^th September 2006, namely :-

“(a) unless the goods are purchased or entry is effected on or after the 1^st April of the year in which the dealer has obtained registration and, -

1. the goods are treated as capital assets by the dealer and have not been sold before the date of effect of registration, or

2. the goods are not treated as capital assets and have not been sold or disposed off before the date of effect of registration, or

3. the goods are not treated as capital assets and have been used or consumed in manufacture and the manufactured goods have not been sold before the date of effect of registration, or

4. the dealer was a registered dealer at the time of such purchase or entry,”;

2. in sub-rule (3), in clause (a) after paragraph (iii), the following shall be added, with effect from 8^th September 2006 namely :-

“ (iv) set-off or refund to which the dealer has become entitled in the said period.

  (v) deposit paid towards voluntary registration.”

12. In rule 65 of the principle rules, the following shall be added at the end, namely:-

“The dealer shall, in addition to the report of audit shall also file an electronically readable CD-ROM by downloading the Form 704 from the website www.mahavat.gov.in.”

13. In rule 66 of the principal rules, for the words “within eight months” the words “within ten months” shall be substituted with effect from 1^st April 2007.
     

14. To rule 68 of the principal rules, the following proviso shall be added, namely:-
    
    “Provided that where any proceeding have been initiated in respect of any registered dealer within the said period of five years, then the Commissioner may direct the said dealer to preserve the said books of account, registers and other documents, beyond the said period of five years till a final order is passed in respect of the said proceedings”.

15. In rule 79 of the principal rules,-

1. in sub-rule (2),-

1. for the words “Certificate for exemption from” the words “Certificate for exemption or, as the case may be, for deferral of” shall be substituted and shall be deemed to have been substituted form 1^st April 2005, and

2. for the words “four percent” the words & figures “four percent for the period upto 31^st March 2007 and thereafter three percent” shall be substituted and shall be deemed to have been substituted from 1^st April 2007 

2. after sub-rule (2) so amended, the following sub-rule shall be inserted, namely ;-

“(3) Notwithstanding anything contained in sub-rule (2), no refund under the said sub-rule shall be allowed unless, -

1. the Unit holding the Certificate for exemption from payment of tax debits the amount of said refund to the Cummulative quantum of benefits or,

2. the Unit holding the said Certificate for deferral of payment of tax admits the liability of the amount of the said refund for deferment of payment of taxes.

and files the returns or, as the case may be, revised returns for the period to which such refund relates by admitting such claims therein.

16. In rule 87 of the principal rules, for sub-rule (3), the following shall be substituted, namely:-

“(3) When service is made by post or by a courier agency, the service shall be deemed to be effected by property addressing or preparing the order or notice and posting it by registered post with acknowledgment due or; as the case may be, by courier agency with ‘proof of delivery’ acknowledgment and unless the contrary is proved, the service shall be deemed to have been effected at the time at which the order or notice would be delivered in the ordinary course of post or, as the case may be, courier.”

17. In From 101 appended to the principal rules, for item 7, the following shall be substituted, namely :-

“7. Nature of business (Please (√) tick the appropriate Box/ boxes)

Main  Nature	Reseller	Manu   facturer	Retailer	Importer	Exporter
	Works   Cont- ractor	Leasing	Restau- rant	Commi-   ssion Agent	Others    (Please specify)
Part Nature	Reseller	Manu-   facturer	Retailer	Importer	Ex-porter
	Works   Cont-  ractor	Leasing	Restau- rant	Commi-   ssion  Agent	Others     (Please specify)

18. Form 106 appended to the principal rules shall be deleted.
     

19. After from 108 appended to the principal rules, the following form shall be inserted, namely :-

“FORM 109

(See Rule 11 of the Maharashtra Value Added Tax Rules, 2005)

Notice under second proviso to sub-section (6) of section 16 of the Maharashtra Value Added Tax Act, 2002. 

To
    ………………………………….
    ………………………………….

Reference No.
R. C. No. under MVAT Act, 200.

            You have applied voluntarily for registration under the Maharashtra Value Added Tax Act, 2002 on ……………………….. A Certificate of registration bearing No. ………… and having date of effect ………………… was issued to you.

            It appears that although you have voluntarily got yourself registered, you have not commenced business within one year of the date of effect of registration. You are therefore requested to show cause as to why the registration certificate granted to you should not be cancelled.

            You are hereby directed to attend at ………………. (place) at …………………. (time) on ……………………… (date) and show cause why the registration certificate should not be cancelled.

Seal
Place:	Signature
Dated :	Designation

By order and in the name of the Governor of Maharashtra,       

 SHASHANK MATHANE,
Officer on Special Duty to Government.