Audit Report

The last date for filing the VAT Audit Report for the financial years 2005-06, 2006-07 is finally extended to 30-6-2008. Please note there will be no further extension

Change in the Return forms & Due Date

The State of Maharashtra by Notification dated 14-3-2008 amended the Rule whereby all the Returns to be filed after 21-3-2008 should be in new form, the details of which are given later on. By Cir.No. 10T/08 the Commissioner has extended this date to 31st March 2008. The new criteria of due dates for filing return will be effective from 1-4-2008.

Amendment under CST Act

Although the Union Finance Minister has stated that rate of tax under C S T Act for sale against C form will be 2% w.e.f. 1-4-2008, no notification to that effect is received so far.

State Budget Highlight for VAT and Notifications

The State Finance Minister Shri Jayantrao Patil has delivered the Budget speech on 19th March, 2008. The major proposals as far as VAT is concerned are detailed herein below.

Introduction of Cess in place of Octroi

1. An important announcement is that the Govt. has decided to abolish Octroi in all ‘D’ class Municipal Corporations from 2008-09 and introduce Account based Cess instead of Octroi. This account based Cess is already implemented in Navi Mumbai Municipal Corporation.

Extension of time for Assessment –Motor Spirit Taxation Act

2. The extension is granted to the Collector for assessment under Motor Spirit Taxation Act if the licensed dealer has filed all statements for 1-4-2002 to 31-3-2004 before 30th Sept. 2004, then the due date for assessment is extended to 31st March, 2009. Similarly licensed dealers who have filed all statements for 2004-05 before 30th Sept., 2005 can be assessed up to 31-3-2010 .
    

3. Extension of time for Assessment –

BST Act/CST Act

By Act viii of 2008 an amendment is made by inserting to sec. 96 cl. a-2 to a-04. Cl.a-2 and a-3 are as in previous pera . The new (a-4) is in respect of the returns relating to any period commencing on or after the 1st April, 2002 and ending on the 31st March, 2004 under BST Act. It provides that an order of assessment under sub-section (3) or (4)  of section 33 of  the Bombay Sales Tax Act, 1959 for these periods may be made on or before the 31st March, 2009; and in respect of returns relating to any  period commencing on or after the 1st April, 2004, an order of assessment under sub-section (3) or (4) of the said section 33 may be made on or before the 31st March, 2010.

Electronic Returns

4. For Electronic Returns, a notification dated 14-3-2008 is already issued whereby the registered dealers whose tax liability during the previous year was Rs. 1 crore or more has to make payment and file electronic return for the period starting on or after 1st February, 2008. Tax liability for the purpose of calculating Rs. 1 crore shall mean total of all tax payable by dealer in respect of all his places of business in the State under MVAT Act & CST Act after adjustments of the set off or refund claimed by him under respective Acts. By Cir. 8T/08 dt. 19-3-2008 the CST has allowed such LTU to file E return up to 31st March, 2008 The Finance Minister has expressed his desire to introduce

E-return for all the dealers who are required to file monthly returns.

5. New administrative relief scheme would be announced for the dealers who are detected as unregistered under the current survey

6. With the proposed reduction of CST rate from 3% to 2% against C form as proposed in Union Budget 2008 an amendment would be made under MVAT rules to provide for reduction at the currently applicable CST rate. The notification is awaited.

7. Commodity of daily use such as foodgrains, turmerics, chilly would continue to remain tax free up to
   31-3-2010. These includes wheat, rice, pulses, their flours, jaggery, turmeric, coriander, chilly, parsley, coconut, separate kernels of coconut, Solapuri chhadar, papad, wet dates. Similarly concessional rate would continue for tea, dry fruit, currants and rasins upto 31-3-2010.

8. Sales of Aviation Turbine Fuel in places other than Mumbai and Pune would be taxed at concessional rate of 4%.

9. To promote the local trade of timber it is proposed to reduce the rate of tax from 12.5% to 4%. This reduced rate would be applicable for one year only.

10. Following the Supreme Court ruling in case of K. Raheja the finance Minister has proposed that the Works Contract Tax would be attracted so long as individual agreement are entered into before the construction of the building is completed. However, the cost of the land will not get taxed under MVAT.

11. Maharashtra Tax on the Entry of Goods into Local Areas

As proposed in the State Budget a notification, dated the 29th March, 2008 is already issued under Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 to introduce entry tax on air conditioners and tiles manufactured outside India and brought into the State of Maharashtra to be effective from 1-4-2008 by adding following entries to the Schedule.

"14.	Air-Conditioning machines, comprising a motor driven fan and elements for changing the temperature	12.5%
15.	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	12.5%”.

12. It is proposed to have facility for the tax payers to pay taxes to Govt. A/c through E-way by internet. This will enable the tax payers to pay taxes conveniently at any time and from anywhere through internet.
     

13. By amending Sec. 29(8) of MVAT Act, the penalty for late filing of return is enhanced from Rs. 2,000/- to Rs. 10,000/-. However if the return is filed before initiation of assessment proceedings the penalty is enhanced to 5,000/- instead of Rs. 10,000/-. This amendment is not brought into force by Act VIII of 08 dt. 31-3-2008.
     

14. By a notification u/s. 41(1) of MVAT Act dt. 14th March 2008, the state has deleted from the list of 'Other Organisations' entry 'xxx' rotating to "Republic of Mauritius".
     

15. Notification under Entry C-81(b) relating to rate of tax on blanket travelling rugs, solapuri chadders (covered by (CE 6301) and other furnishing articles and towels covered by 6304 but (excluding the articles covered by 9404) will be effective from 1-4-2010 instead from 1-4-2008.

CHART OF DUE DATES FOR FILING OF RETURNS w.e.f. 1-4-2008

The Explanations to rule 17 are also substituted the effect is as follows:–

1. The dealer who is also doing business of execution of works contract, transfer of right to use the goods and or has opted for composition for part of his business, he shall file return in Form 233 instead of Form 231. If such dealer is required to file return in Form 234 & 235 he shall file return in Form 233.

2. For any period ending on or before 29-2-2008 or any period for which due date is on or before 21-3-2008 and the return is not filed on or before 21-3-2008 then the dealer shall file return in the new form instead of old forms. The notified oil company has to now file a copy of return in Form 235 with the Jt. Commissioner of Sales Tax LTU within 3 days of filing of the return in Form 235 with the Govt. Treasury.

3. When no tax including penalty and interest is due and payable the return shall be continued to be filed with the registering authority non-residence circle or with the registering authority having jurisdiction over principal place of business of the dealer.

NIL Return :