Amendments in Maharastra VAT

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Aisha

Finance Professional

8749 Points Joined October 2007

Dear All,

The Government of Maharashtra made the amendments to Maharashtra Value
Added Tax Rules, 2005 vide Maharashtra Value Added Tax ( Second
Amendment ) Rules, 2007 dated 31st October, 2007. The main and important
amendments are listed below for ready reference -

(A) PAN made complusory at the time of registration by removing the word
"if any" appearing in the section 8(9)

(B) 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 https://www.mahavat.gov.in

Changes w.e.f. 1st April, 2007 :

(A) Reduction in set-off reduced from 4% to 3% in following cases
(i) in respect of any taxable goods used as fuel;
(ii) in respect of any taxable goods purchased by him (not being
goods treated as capital assets or used as fuel) corresponding to
manufacture of any tax free goods;
(iii) in respect of any packing material purchased by him
corresponding to resell of any tax free goods packed in material;
(iv) in respect of any taxable goods purchased by him (not being
goods treated as capital assets or used as fuel) corresponding to
dispatches of any taxable goods outside the State, to any place within
India, not by reason of sale, to his own place of business or of his
agent or where the claimant dealer is a commission agent, to the place
of business of his principal;
(v) in respect of any purchase of office equipment, furniture or
fixtures and has treated them as capital assets and he is not engaged in
the business of transferring the right to use these goods (whether or
not for a specified period) for any purpose;

(B) The report of the audit under section 61 shall be submitted within
ten months as against eight months earlier of the end of the year to
which the report relates.

Changes w.e.f. 1st April, 2008 :

(A) Six Monthly Returns will be applicable to dealers whose
(i) tax liability during the previous year was Rs.1,00,000/- or
less instead of Rs.36,000/- or less as earlier or
(ii) whose entitlement for refund during the previous year was
Rs.10,00,000/- or less instead of Rs.36000/- or less as earlier.

(B) Monthly Returns will be applicable to dealers whose
(i) tax liability during the previous year had exceeded
Rs.10,00,000/- instead of Rs.1,00,000/- as earlier or
(ii) whose entitlement for refund during the previous year had
exceeded Rs.1,00,00,000/- instead of Rs.1,00,000/- as earlier.

Thanks.

Replies (4)

KAAPIL

COACHING

11717 Points Joined May 2007

Thanks for the updation.

Guest

425530 Points Joined August 2012

TRADE CIRCULAR Date: 31.10.2007 No.VATMMB-1006/152/Adm-3 Trade Cir. No. 66 T of 2007 Sub : Submission of Audit Report in Form 704 for the year 2005-06. Ref: 1) Writ petition No. 3203 of 2006. The Sales Tax Practitioner Association of Maharashtra and Another Versus The State of Maharashtra and Another. 2) Trade circular No. 9T of 2007, Mumbai dated 29.01.2007. 3) Trade circular No. 20T of 2007, Mumbai dated 27.02.2007. 4) Trade Circular No. 36T of 2007, Mumbai dt. 28.4.2007. 5) Trade circular No. 45T of 2007, Mumbai dated 20.6.2007. 6) Trade circular No. 49T of 2007, Mumbai dated 30.6.2007. 7) Trade circular No. 51T of 2007, Mumbai dated 31.7.2007. 8) Trade circular No. 58T of 2007, Mumbai dated 23.8.2007. 9) Maharashtra Act No. XXV of 2007 dated 6.8.2007 Gentlemen/Sir/Madam, 1. The Hon'ble High Court has fixed the hearing of Writ Petition No. 3203 of 2006 regarding Form 704 in the month of December 2007. Therefore, date of filing of Form 704 is required to be extended. Accordingly, the date for filing of Form 704 in respect of the year 2005-06 is hereby extended to 31st December, 2007. 2. Date of filing of the Audit Report in Form 704 for the year 2006-07 is 30th November 2007. This date is also extended upto 31st December 2007. 3. Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2007 (Mah. Act No. XXV of 2007) has come into force from 5th August 2007 by which amendments to section 61 of the Maharashtra Value Added Tax Act, 2002 are made. It is decided administratively to give concessions to the dealers on following two points,- (a) Audit of the dealers who have not done their audit u/s. 61 and not submitted their Form 704 till today can get their accounts audited by "a Cost Accountant within the meaning of the Cost & Works Accountants Act, 1959" in respect of the years 2005-06 and 2006-07. (b) Government authorities who have not submitted their Form 704 till today are not required to submit their Form 704 now whether in respect of the year 2005-06 or 2006-07. These authorities as defined in the Act are as follows :- "Departments of the Union Government, any Department of any State Government, local authorities, the Railway Administration as defined under the Indian Railways Act, 1989, the Konkan Railway Railway Corporation Limited and the Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1959." 4. If any discrepancies are shown in the Audit Report regarding the relevant underlying returns already filed by the dealer, then a revised return is to be filed. In such cases, the last date for filing of this revised return is now extended to 31st January 2008. No legal action will be taken against the dealers who abide by the above mentioned revised deadlines. 5. Though the dates are extended, the dealers are advised to submit Form 704 as early as possible before the extended date to avoid last minute rush. The Chartered Accountants should phase out their work in such a manner that the submission of audit reports in form 704 is spread over the extended period, if not already submitted, so that there will not be any inconvenience to any one. 6. In the year 2005-06, dealers were holding old B.S.T.R.C.Nos. which must be shown in the audit report form 704. From 1.4.2006 these numbers have been replaced by TIN. It is requested that while filling Form 704, the corresponding TIN should also be shown in the right hand top corner of the front page the form in bold letters with borders in red ink as shown below: T.I.N. 2 7 1 2 3 4 5 6 7 8 9 V This will facilitate the department to update the dealer's data and will also be helpful to the dealers. 7. Dealers are also requested to submit their e-mail addresses at the time of filing the audit report in form-704. 8. In areas other than Mumbai, form 704 will be accepted in the office of the respective Joint Commissioner of Sales Tax (Adm). In the places where the office of the Joint Commissioner of Sales Tax is not located, it will be accepted in the office of the Deputy Commissioner of Sales Tax (Adm) or Assistant Commissioner of Sales Tax (Adm), as the case may be. 9. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification. 10. You are requested to bring the contents of this circular to the notice of the members of your association. (SANJAY BHATIA) Commissioner of Sales Tax, Mah. State, Mumbai.