TIN Number

The Tax Payer Identification No. of majority of the Dealers are now available. The TIN No. will be effective from 1st April, 2006. Those who have not received the TIN No. should contact TIN Help Desk. The Certificate of TIN No. may take time to be issued by the Department. However in the meanwhile please check the address and name in the TIN notified.

Filing of Return

All the dealers who had more than one Registration Certificate for the same constitution were filing separate returns for each Registration Certificate upto 31st March 2006. As the law stands today, one TIN No. is issued for all the places in Maharashtra. Therefore as the law stands today the return for the month of April 06 onwards will be one for all the places in Maharashtra. Though this is the legal provisions it would cause grave hardship to some dealers as it is administratively difficult to compile all the data in one place within a short time prescribed for filling return..

Some administrative instructions from the office of Commissioner of Sales tax may come by 15th April 2006 for filling of returns.

Amendments to Schedule Entries

Following are some of the amendments made to the schedule Entries.

The amendments are made by notification dated 21-1-2006. All these are amendments to the schedule entry made effective from 1-2-2006 except where specified otherwise. Following is the Gist, it is advisable to read entire entry. The details are as follows:

1. Amendment to schedule – A, i.e., tax free goods :

Schedule	Description of Goods	Remarks
Entry
A-1	Components and parts of notified Agricultural implements	Tax free
A-2	Components and parts of notified Aids and implements used by  handicapped persons	Tax free
A-3	Components parts and accessories of  animal driven carts including bullock carts	Tax free (Excluding bearing tubes and Tyres)
A-6	Entry relating to Books – changed books, that is to say, every volume or part  Or division of a volume including almanacs, Panchangs, time tables for passenger transport services and periodicals, maps, charts, orreries Globes, but excluding –	New Entry
	Annual reports, application forms, account books, balance Sheets, calendars, diaries, catalogue, Race cards, publications which mainly publicise goods, services and articles for commercial purposes and publications which contain space Exceeding eight pages for writing.
A-12	Components parts and accessories of Charka, Amber charka and other implements used in production of hand spurn yarn	Tax Free
A-18	Curd sold under brand name (whether Sweetened, flavored or not)	made taxable under E-1 at 12.5
A-24	Fresh vegetables, Potatoes, Sweet Potatoes Yam, Onions, fresh fruits when sold in Frozen state or in sealed container.	Made taxable Under E-1 at 12.5 or at 4% -C
A-30	Components and parts of notified indigenous handmade musical instruments	Tax free
A-33	Entry recasted now only (1) raw meat, raw flesh of poultry, raw sea food including fish, prawns, Tax free lobsters, crabs and shrinks (except when sold in frozen state or in sealed container)	Conditional Tax free
	(2) eggs in shell sheep, goats, pigs poultry and cattle excluding  horses
A-45	Explanation added to declare that tobacco shall not include pan masala; i.e., to say any preparation containing betel nuts and tobacco and any one Or more of the following ingredients namely
	1) lime	Conditional
	2) Kattha (Catechu) whether or not containing any other ingredients such as Cardamom , Copra and Methol	Tax Free
A-49	In the exclusion clause water for injection is added	Taxable @ 12.5
A-50(A)	Only goods distributed through the PDS system (except kerosene) are covered	Tax Free
A50 ©	The exemption from tax would be to goods sold to in transit passengers (both incoming and outgoing) at the duty free shop at International Airport, Mumbai	Tax Free (scope (widened)
A-51 (i)	Papad served for consumption made taxable at 12.5%	Tax as food
A-53	New entry added
	A-53. Hurricane lantern and kerosene lamp, kerosene lanterns, petromax lanterns,  kerosene stoves, kerosene pressure stoves, petromax pressure lamps, pressure lamps, glass chimneys and lanterns, petromax gas mantles and accessories, components and parts of all of them.	Tax free
SCHEDULE – C : Amendments
C-1	Components and parts of agricultural machinery and implements	4% tax
C-29	New sub-entry (b) added. Medical oxygen and Nitrous oxide manufactured under licence granted under Drugs and Cosmetics Act, 1940	4% tax
C-32	Drawing books  added to the entry of excise books, graph book & laboratory note books	4% tax
C-37	Sub-entry C, D, E added to be effective from 1-5-2005	4% tax
	( c) Pulse flour including besan mixed with flour of other pulses, when sold on or after 1st May, 2005.
	(d) Pulse flour including besan mixed with flour of cereals including maize, when sold on or after 1st May, 2005.
	(e) Pulse flour including besan mixed with flour of other pulses and cereals, when sold on or after 1st May, 2005.
C-48	Hurricane lantern etc. entry deleted as included in A-53	Tax free
C-52	Dhoop is added in the entry relating to incense sticks	4% tax
C-60	Products of lac and shellac added	4% tax
C-70	Paper entry clarified and recasted	4%
	C-70
	a) Paper, newsprint, paper board, waste paper
	b) All types of paper stationery for computer  carbon paper, ammonia paper
C-83	Roasted and fried pulses including grains when served for consumption not to subject to 4%	12.50%
C-87	All kinds of sewing needle and knitting needle	4%
C-89	Entry relating to skimmed milk powder and UHT milk modified	4%
	C-89 :
	a) Milk powder including skimmed milk powder
	b) UHT milk
	c) Condensed milk whether sweetened or not, when sold
	on or after 1st April, 2005.
	d) Milk containing any ingredient and sold under a brand
	name, when sold on or after 1st April, 2005.
	Explanation : UHT milk, condensed milk whether sweetened or not and milk containing any ingredient and sold under a brand name will not be covered by the scope of this entry when served for consumption
C-91	Entry, modified for the period starting from 1-4-2006 chilli, turmeric, tamarind, coriander seeds, fenugreek and parsley (Suva) whether whole or powder	4%
C-94	Entry recasted	4%
	a) Sweet and sweetmeats including Shrikhand, Basundi, Doodhpak except when served for consumption excluding ice-cream, other edible ice whether or not containing Cocoa, Kulfi, non-alcoholic drinks containing ice-cream or kulfi, sweet drops, toffees, chocolates, other confectioneries and all kinds of bakery products.
	b) Varieties of farsan as may be notified from time to time by the State Government in the Official Gazette.
C-96	Entry recasted	4%
	C-96 (a)
	Tractors, trailers and trolleys (being agricultural tractors, trailers and trolleys), harvesters, attachments, parts, components, accessories, tyres and tubes thereof.
	When sold on or after 1st April, 2005 threshers and attachments parts, components, accessories, tyres and tubes thereof.
C-97	Components and parts of transformer	4%
C-99	Entry recasted components parts and accessories of umbrella except garden umbrella included in  C-99	4%
C-103	Components parts and accessories of windmill for water pumping and generation of electricity	4%
C-107(11)	recasted	4%
	a) Raw meat, raw flesh of poultry and raw seafood including fish, prawns, lobsters, crabs and shrimps, when sold in frozen state or in sealed container;
	b) Fruits and vegetables when sold in frozen state or in sealed container;
	c) Processed, semi-processed or semi-cooked food articles made from meat of any animal or flesh of bird including ham, bacon, sausages, salami or  kababs, whether or not sold  in frozen state or in sealed container;
	d) Processed, semi-processed or semi-cooked flesh of poultry, seafood including fish, prawns, lobsters, crabs and shrimps, whether or not sold in frozen state or in sealed container;
	e) Processed, semi-processed or semi-cooked fruits and vegetables including fruit jams, jelly, pickle, sauce, porridge, marmalade, cottage cheese (Paneer), honey, preserved fruits, fruit squash, fruit paste, fruit drink, fruit juice, vegetable juice, squashes, syrups, cordials, whether or not sold in frozen state or in sealed container.
	f) Food stuffs and food provisions of all kinds including raw,semi-cooked or semi-processed foods, ready to mix and ready to cook preparations excluding ready to serve foods.
	Explanation : The items referred to in clauses (a) to (f) will not be covered by the scope of this entry when those are served for consumption.
	g) Powders, tablets, cubes, crystals and other solids or liquids from which non-alcoholic beverages and soups are prepared.

Change in the date of filing of returns

The periodicity of return continues to be related to the tax liability of the previous year. However the tax liability under VAT having changed all of you will have to relook at the provision of filing of Return since for the period starting from 1-4-2006 tax liability for the period 1-4-2005 to 31-3-2006 will have to be considered.. Tax liability for the purpose of determining the periodicity of return would mean total of all taxes payable by a dealer in respect of all places of business in the State under the CST Act and MVAT Act after adjustment of set off or refund in the previous year.

For the dealer who are claiming refund or who have carried forward set off to the next return an amendment is made to the provision of filing of return. A new provision is now inserted as per which the dealer who has filed 6 monthly return and has carried forward any set off to the next return or has claimed the same as refund, he shall in place of 6 monthly return for the period 31-3-2006 file a quarterly return for the quarter ending 31-12-2005 on or before 13-3-2006 and for the quarter ending 31-3-2006 the return shall be filed before 21-4-2006.

1. dealer opting for composition; and

2. Dealers whose tax liability in previous year is not more then Rs. 1,00,000/- shall file the returns for January, February and March as follows.

January ….21st February
February…..31st March
March…….21st April

Rest of the provisions for returns are as follows:

No Annual Return

The dealers holding certificate of entitlement are required to file monthly returns for the month of Jan, Feb, March 2006 before 13th March, 20th March and 21st April respectively. Please note this provision is only for Jan, Feb & March, 2006 as far as the backward area units are concerned.

Proposals in State Budget (21st March 2006)

No specific proposals are made in the State Budget. However gist of some important observations by the Finance Ministers are as follows:–

1. Check post would be established for monitoring the goods traffic at the borders of the State, at major seaports and airports.
    

2. The reorganization and automation of Sales Tax Dept would be completed by the end of financial year.
    

3. The concession and exemption in tax rate were for one year. The State has requested the Union Government to allow the present arrangement to continue for 6 more months. This means certain rate of tax in the schedule entries which were applicable only up to
   31-3-2006 may be made applicable for 6 more months. However speech states State Government may take appropriate decisions in the next few days. Therefore much depends on the appropriate decision of the State Govt.
    

4. The C form, F form, H form all these applications can now be made online. Shortly the Returns also would be allowed to be filed online. Tax-payers’ guide will be prepared by the Department.
    

5. The minimum amount for application of profession tax for an employee was salary of Rs. 2,000/- per month. It is proposed to increase this limit to Rs. 2,500/- Therefore the employees drawing salary up to 2,500/- will not be liable for payment of Profession Tax w.e.f. 1-4-2006.
    

6. Though lottery tickets are excluded from the provision of goods under MVAT and new law for levy of tax on lottery ticket will be prepared and introduced. Heavy tax would be imposed on lottery to discourage addiction to lottery by young people.
    

7. Many amendments are proposed to be made to the stamp duty.
    

8. The licence for IMFL and country liquor are also proposed to be changed so also the State Excise Duty on IMFL and country liquor.
    

9. The motor vehicle tax on privately owned privately is proposed to be increased from 4% to 7%.
    

10. The one time tax on light goods vehicle would be enhanced whereas the goods vehicle tax shall be collected at the prescribed maximum rate.
     

11. Rate of water charges for irrigation and non irrigation use will be increased by 15%.
     

12. It is proposed to increase the entertainment duty applicable TV by 50%.
     

13. A study group is formed to look into to introduce a different taxes in place of octroi.

Recent amendments to CST Act and procedure for submitting declaration under CST Act

Following are some of the recent amendments made to the CST Act:-

1. Definition of sale contained in 2(g) in CST Act was amended to include Works Contract, Lease etc. The definition of sale price is amended and the proviso is added to the effect that in case of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract the sale price of such goods for the purpose of CST Act shall be determined in the prescribed manner by making such deduction from the total consideration for the works contract as may be prescribed in and such price shall be deemed to be sale price for the purpose of this clause.
    

2. Though the rules are yet not prescribed the deduction from sale price for the purpose of CST Act would be at par with rule 58 of MVAT Act
    

3. The works contract for the purpose of CST Act is defined to mean a contract of carrying out any works which include assembling, construction, building, altering, manufacturing, processing fabricating, erection, installation, fitting out improvement, repair or commissioning of any movable or immovable property.
    

4. H-form which is issued for claiming exemption u/s 5(3) of CST Act from payment of tax when the goods are sold to the exporters are now made compulsory.
    

5. Sale of aviation turbine fuel to designated Indian carrier for the purpose of international flight shall be deemed to be sale in course of export.
    

6. The interstate sales to foreign diplomatic mission, Consulates, United Nations or any other similar international body shall not attract payment of tax. The exemption subject to furnishing prescribed declaration Form J.
    

7. A single declaration in Form C can now over transactions which takes place in one quarter of financial year. This amendment has to come in force with effect from 1-10-2005. If a transaction of sale or delivery of goods is spread over two different quarters of financial year or two different quarters of different financial year it shall be necessary to furnish separate declaration in respect of goods delivered in each quarter of financial year.
    

8. E-1 and E-2 wherever applicable will also have to be issued for one quarter.
    

9. The amendment to the CST Act requires the selling dealer to furnish to the prescribed authority within 3 months of the end of the period declaration in Form C, Form F Form H or certificate in Form E-1 or E2 pertaining to that period. The Commissioner of Sales Tax Maharashtra Sales Tax has looking into the difficulty of the dealers to physically deliver the declaration in Form C, F, H, E1 and E2 decided on administrative grounds that the selling dealer making claim of sale against above mentioned declaration need not furnish the declaration to the prescribed authority within 3 months. However the dealer making such claims should furnish a list of declaration which are not received till the due date in the Performa enclosed to the circular No. 28T of 2005 to their assessing authority. Separate list should be furnished for each type of declarations or certificates within 3 months after end of period to which declaration certificates relates. The period for C , E1 and E2 is 3 months from the end of the quarter. H form has to be furnished up to the time of assessment; i.e., within 3 years from the end of the period to which it relates. F form should be submitted one for each month. Therefore list of missing F forms should be submitted at the end of three months from the end of every month. The list of missing forms should be submitted to the assessing authority.
    

10. The SEZ units should furnish Form I and declaration for diplomatic missions, consulate etc. would be in Form–J.

The proforma for furnishing declarations which are not received till date has following columns:

1. Sr. No.

2. Name of the purchasing dealer and address

3. RC No. under local No. and CST Act

4. Invoice No. and date

5. Invoice amount

All the dealers who have CST transactions have therefore to submit this list of missing declarations for the quarter ending October-December by 31st March, 2006.

The Union Finance Minister expressed that VAT has been a resounding success. He hoped the non-VAT States will also join the VAT regime. The next step of reform will be only after all States have implemented VAT.

As regards phasing out the Central Sales Tax, the Hon’ble Finance Minister informed that the States have requested the Centre to compensate the loss of revenue through monetary or non–monetary measures. Once the agreement is reached on these measures with Empowered Committee the effective legislative changes would be made.

The Hon’ble Finance Minister set the 1st April, 2010 as the date for Goods & Service Tax. This GST would be shared between State and Centre.

The coverage of Service Tax & Central VAT rate is progressively increased so that people get used to idea of GST.

Leasing and hire purchase industry were taxed under service tax on all components of payment. Now to avoid double taxation it is proposed to allow abatement of interest and instalment of principle amount for calculating value of services. The principle amount is anyway being taxed under local VAT/sales tax or CST.

To rationalize the high rate of sales tax by the States on liquefied petroleum gas for domestic purpose, the Finance Minister has amended section 14 of Central sales tax Act. Section 14 of CST Act lists the goods of special importance commonly known as declared goods. LPG for domestic use is included in the list of declared goods. Therefore, by virtue of prohibition in section 15 of CST Act the States will not be able to levy the tax on LPG for domestic use at more than 4%. The interstate sale of declared goods with C/D form is subject to 4% tax and 8% without C/D form. LPG gas for domestic use will be taxed accordingly under local and Central Act.

To facilitate timely submission of statutory forms by the form-issuing dealers to the form-accepting dealers, the facility of submitting application online is being introduced. The dealer will be able to fill in the application on computer, file it with the concerned Central Repository online and take a printout of the application, statement of requirement and the statement of the invoice of the highest value for his record. If the dealer exercises the option to file the application online, then the department will issue the statutory forms with the required information printed on it. This would not only reduce the delay in issuance of forms but also reduce the possibility of errors while writing the details on the forms.

3. The facility of online submission of application for CST forms will be presently available to the dealers obtaining forms from the Central Repository situated at Vikrikar Bhavan, Mazgaon, Mumbai only.

Those who wish to apply online will have two options namely –

• Online filling and online submission of application.

• Offline filling and online submission of the application.

1. Online filling and Online submission

1. This facility is more useful to dealers who have an uninterrupted Internet connection and require lesser number of forms. Under this option, the user is allowed to fill and submit the application, statement of requirement and statement of invoice of highest value, online. To avail of this facility, the user will have to choose the option of online filing at the website of the department www.vat.maharashtra.gov.in
    

2. After filling all the required details in the form, the user will have to click on ‘Submit’ option. The system will indicate that the application has been received. The user will also get a Transaction ID, the date on which he is supposed to approach the Central Repository and details of the documents which need to be carried along to obtain the forms. The system will automatically assign an officer and prepare the application form and statement of requirement.
    

3. The user must print the complete application form, which is submitted online, affix on it the court fee stamps of appropriate value, sign it and visit the officer mentioned in the statement, along with the necessary documents on the appointed day for verification. Once the verification by the officer is over, the required number of printed statutory forms duly stamped and signed by the Sales Tax Inspector, will be issued.

2. Offline filling and Online submission

1. This option is more useful to dealers requiring large number of forms. Under this option, the user can download utility software from after filling the form, the user will have to submit the application through Internet. He would be guided to the Web page to submit the application.
    

2. It should be noted that the department will not print and keep the forms ready unless the dealer/authorised representative attends the assigned officer with the printed copy of the application form. This is to avoid the applications made in fictitious names or applications made by a person in other dealer’s name.

4. The dealer requiring large number of forms, say more than 25, will benefit more from this utility. It may also be noted that the current manual process of issuance of forms will also continue.

New return notification

The Government of Maharashtra has amended the rule 17 of the MVAT Rules 2005, by which the earlier return forms 201 to 209 are replaced by the new VAT return forms 221 to 225. These new VAT return forms are to be used in respect of any return to be filed after 1st April, 2006. Any return or revised/ fresh return not filed for past VAT period also have to be filed in the new VAT return forms only.

The new VAT return forms may be downloaded from this Website, from the Website Menu "at your service". The forms may also be obtained privately. If the forms are got downloaded from the Website or obtained privately, then they should confirm with the details of the forms issued by the Sales Tax Department and the paper used should be of white colour, A4 Size and of minimum thickness of 70 g.s.m. or of the executive bond variety.