26th October, 2007

To
Shri S. R. Bhattacharjee,
Jt. Commr. of Profession Tax,
Mazgaon, Mumbai

Sir,

Re:	On-going Amnesty Scheme under the Profession Tax Act, 1975.

Please find this representation on basis of feed back and persistent anxiety expressed with us by our members and by traders in general at our library.

For past fortnight, there is over-whelming response to the scheme. On an average 600-650 applications are being submitted at the Mazgaon and there is always serpentine queue at the registration counter. We are sure that you must have received similar reports from other offices.

However, we have noticed that system generating computerized registration numbers is having its limitations. Sometimes server is down and system goes off for hours together. The applicants are called after 5/6 days to collect registration certificate and even on the appointed day, the things are not better.

We are also informed that now your office has instructed the dealers to put reference of application numbers on the challans and amnesty applications. In meeting held on 18-9-2007, you had elaborated that due to non-mention of RC/EC number and/ or address, the payment goes in suspense account. We fear that the present situation will lead to more chaos in setting right the data at your end after amnesty.

May we take this opportunity to make certain suggestions? Please immediately increase number of application accepting counters at Mazgaon and whereever needed. This will lead to greater number of persons getting registered during the amnesty. We appreciate the way in which work load is handled by the present staff but there are human limitations to stretch for.

We once again point out that banks take 8/10 days time to hand over challans, as such date for accepting amnesty applications be suitably fixed. In fact it will avoid some unscrupulous elements from taking benefit of the rigid deadline of 31-10-2007 for making amnesty applications.

We have already approached the Finance Minister with a request to consider the extension of amnesty. Copy of representation is enclosed herewith. If on taking the stock of the situation, your office also concurs with our view, kindly convey it to the proper forum.

Assuring you of full co-operation and wishing you all the best to achieve the target set out for the amnesty scheme.

Thanking you,

Yours faithfully,
KIRAN G. GARKAR
Vice-President – STPAM

26th October, 2007

To

Shri Jayantrao Patil,
Hon'ble Finance Minister,
Maharashtra State, Mumbai

Respected Sir,

Re:	Amnesty Scheme under the Profession Tax Act, 1975

The State Government had issued Government Resolution dated 10-8-2007 announcing above the amnesty scheme for the period of two months from 1-9-2007 to 31-10-2007.

We are writing to you to share feed-back, suggestions our Association has received from members and traders etc. The scheme had luke-warm response in the beginning but has gathered momentum now. For past fortnight or so, on an average 600/650 applications are received at the Mazgaon Counter itself.

There is always serpentine queue throughout the day at the registration counter. Applicants are called after 4/5 days to collect their registration/ enrollment.

Kindly note that payment can be made only after one gets registered with the Department and more so for the amnesty scheme. There are some system problems for generation of computerised registration. The system is often off the track hampering the registration process.

In fact now applicants are asked to write the reference of their application numbers to make payment under the amnesty.

On declaration of the Scheme, we had a meeting with the Commissioner of Sales Tax, Shri Sanjay Bhatia on 18-9-2007. He had made it categorically clear that Government wants to start survey work from 1st November 2007, so there will not be extension of the scheme.

In spite of this, we are venturing to request your honour to look at the entire exercise from public interest.

The response which the amnesty is receiving itself underlines need for detailed survey. But we feel that survey and amnesty may continue hand in hand up to December 2007.

Those who have come forward to take benefit should not be denied the same on some administrative hassles or rigid approach.

In fact, we also draw your kind attention to the fact that Banks hand over challans for payments in about 8/10 days time. Hence time limit for submission of amnesty applications may also be suitably fixed.

Considering the circumstances, we once again request you to extend the period of the amnesty scheme. Assuring you that as an Association we are always interested in greater tax compliance and extend outright help (though sometimes through constructive criticism) for smooth administration.

Thanking you in anticipation,

Yours faithfully,
Deepak K. Bapat
President – STPAM

25th July, 2005.

Shri S.D. Bhandare
Senior Deputy Commissioner of Sales Tax (A&R).
Maharashtra State, 9th Floor, Mumbai 400 010

Sir,

Ref. :	Your Letter No. Sr. DC (A&R)/Adm-3/Noti/2006/17/B-586 Mumbai dt. 2-7-2007
Sub :	Relief to textile processors

I am greatly obliged to you for your kind letter dated 2-7-2007 giving certain information. However, I beg to say that in 2007 Budget Speech the Hon. Finance Minister has promised relief to Textile Processors from 1-4-2005 onwards. It appears that no such circular has been issued.

Kindly, therefore oblige by throwing light on the same.

Awaiting an early favour and thanking you in antioipation.

with warmest regards,

Yours sincerely,
(Mahabirprasad S. Deora)

Date : 24-10-2007

Shri C. B. Thakar, Advocate
206, Adamji Building, 2nd Floor,
Katha Bazar, 413, Narshi Natha Street,
Mumbai – 400 009.

Sub:–	Circular No. 53T of 2007 dt. 7-8-2007 – Clarification on ratio method
Ref.:	Your letter dt. 17-9-2007

With reference to above mentioned subject, I am directed to clarify as follows:

1. The decision to put the limit of Rs. 2 crore is a conscious one.

2. The Circular will override the clarification given in the letter issued to The Mandvi Meva Masala Merchants Association on 31-1-2006.

(S. D. Bhandare)
Sr. Deputy Commissioner of Sales Tax,
(Act & Rule), Maharashtra State, Mumbai

Date : 17-9-2007

To

The Commissioner of Sales Tax
Maharashtra State, Mumbai.

Dear Sir,

Ref:	Circular No. 53T of 2007 dt. 7-8-2007 clarification on ratio method

Sir, we refer to your above circular by which it is informed to the trade that if the identification on the sales side (tax rate wise) is not possible, then the dealers can bifurcate such sales on the ratio basis of purchases. At the outset we are thankful for above clarification by trade circular. However in the said circular we find that a condition has been put that a dealer, whose turnover is more than Rs. 2 crores in immediate previous year, will not be eligible for this type method. Sir, we fail to understand the relationship between the turnover of previous year and adopting ratio method. The ratio method is to be adopted because the identification on the sale side is not possible. So whether the turnover is more than Rs. 2 crores in previous year or less than Rs. 2 crores in previous year, the difficulties of identifying rate wise sales will be same. On the contrary for big traders, having turnover more than Rs.2 crores, the difficulties will be more. So we bring to your kind notice that such condition should not be put in the circular and we further request that by subsequent circular this may be modified.

We also bring to your kind notice that earlier your good office have given reply to The Mandvi Meva Masala Merchants Association, dt. 31-1-2006 (copy enclosed). Vide this reply your goodself have allowed the dealers to follow the ratio method if the identification is not possible. The only condition mentioned in that is that the method should be followed consistently. Your above circular is contrary to above clarification. The dealers have already started following your earlier clarification. Otherwise also, under the Sales Tax Laws, for all prior years, including under BST Act, ratio method is followed where the identification is not possible and it is recognized method adopted by the Department also as and when faced with similar situation.

Under above circumstances, the above clarification issued to The Mandvi Meva Masala Merchants Association was logical and justified.

In light of above we submit that the circular 53T of 2007 putting the condition of Rs. 2 crores is going to adversely affect the dealers and create more confusion. We therefore request your goodself to modify the said circular at the earliest.

Thanking you,

Yours faithfully,
C. B. THAKAR
Advocate

01.11.2007

To

The Commissioner of Sales Tax,
Maharashtra State, Mumbai.

Ref:	Your letter No. VAT/MMB-1005/40/Adm-6/B-848 dt. 24-10-2007

We are in receipt of above letter (copy enclosed for ready reference). In this respect we bring to your kind notice following points.

1. The dealers have already followed the method as clarified in the letter issued to Mandvi Mewa Masala Merchants’ Association. The modification, if any, be done prospectively, otherwise, it will create unwarranted difficulties for the dealers.

2. We further submit that the conscious decision be reconsidered. The reasons for adopting ratio method are already given. If, at all ratio method is not allowed and at the same time, if the dealer has no identification available, then what course of action will be taken by department should also be clarified.

We request for above clarifications at the earliest and oblige.

Thanking you,

Yours faithfully,
C. B. THAKAR
Advocate