What is maharashtra vat




















All equipments for electronic communication by wireless or by wire including Private Branch Exchange P. All kinds of bricks including fly ash bricks and [refractory bricks and monolithics] , asphaltic roofing tiles, earthen roofing tiles. All kinds of bricks including fly ash bricks and refractory bricks and monolithics, asphaltic roofing tiles, earthen roofing tiles.

All types of yarn whether covered with any material or not other than cotton and silk yarn in hank; sewing thread; waste of any of them.

Aluminum, its alloys and products as may be notified from time to time by the State Government in the Official Gazette.

Aviation Turbine'Fuel sold to a Turbo-prop aircraft. Bamboo and bamboo products. Bicycles, tricycles, cycle rickshaws [and parts, components and accessories and tyres and tubes thereof. Bicycles, tricycles, cycle rickshaws and parts, components and accessories and tyres and tubes thereof. Bulk drugs, whether imported or manufactured under licence under the Drugs and Cosmetics Act, Centrifugal, monobloc and submersible [pumps and pump sets] and parts thereof.

During the periods starting on or, after 1st April Rice, wheat and pulses in whole grain, split or broken form. During the period starting on or after [1st October ] [Paddy and Rice] , wheat and pulses in whole grain, split or broken form.

During the periods starting on or, after 1st April Paddy and Rice, wheat and pulses in whole grain, split or broken form.

During the periods starting on or, after 1st October Paddy and Rice, wheat and pulses in whole grain, split or broken form. During the periods starting on or, after 1st April, Paddy and Rice, wheat and pulses in whole grain, split or broken form. Cotton, that is to say, all kinds of cotton indigenous or imported in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise including cotton waste. Crude oil, that is to say, crude petroleum oils, and crude oils obtained from bituminous minerals such as shale, calcareous rock, sand , whatever their composition, whether obtained from normal or condensation oil deposits or by the destructive distillation of bituminous minerals and whether or not subjected to all or any of the following processes :- 1 decantation; 2 de-salting; 3 dehydration; 4 stabilisation in order to normalise the vapour pressure; 5 elimination of very light fractions with a view to returning them to the oil deposits in order to improve the drainage and maintain the pressure; 6 the addition of only those hydrocarbons previously recovered by physical methods, during the course of the abovementioned processes; 7 any other minor process including addition of pour point depressants of flow improvers which does not change the essential character of the substance.

Drugs including Ayurvedic, Siddha, Unani, spirituous Medical Drugs and Homoeopathic Drugs , being formulations or preparations conforming to the following descriptions:- Any medicinal formulation or preparation ready for use internally or on the body of human beings, animals, and birds for diagnosis, treatment, mitigation or prevention of any diseases or disorders, which is manufactured or imported into India, stocked, distributed ,or sold under licence granted under the Drug and Cosmetic Act, , and includes devices notified by the Central Government under sub-section iv of clause b of section 2 of the said Act, but does not include mosquito repellants in any form.

Edible oil, edible oil in unrefined form and oil cakes. Edible oil, edible oil in unrefined form and [oil cakes excluding sarki pend]. Excavators covered under tariff heading No. Exercise book, graph book, [laboratory note books and drawing books]. Ferrous and non-ferrous domestic utensils other than those. Fertilizers including biofertilisers, insecticides, pesticides, fungicides, weedicides, rodenticides, herbicides, antispouring products, plant growth promoters or regulators, but not including disinfectants.

Fertilizers including biofertilisers, insecticides, pesticides, fungicides, weedicides, rodenticides, herbicides, antispouring products, plant growth promoters or regulators, [and micronutrients] but not including disinfectants. Fertilizers including biofertilisers, insecticides, pesticides, fungicides, weedicides, rodenticides, herbicides, antispouring products, plant growth promoters or regulators, micronutrients but not including disinfectants.

Fireclay, [coal ash] , coal boiler ash, coal cinder ash, coal powder clinker. Flours of cereals and pulses whether singly or in a mixed form including atta, maida, rawa, suji and besan. Sold on or after 1st April, ]. Sold on or after [1st October, ]. Sold on or after [1st April, ]. Goods of intangible or incorporeal nature as may be notified from time to time by the State Government in the Official Gazette. Gur, jaggery, and edible variety of rub gur for the periods starting on or after 1st April, Gur, jaggery, and edible variety of rub gur for the periods starting on or after 1st October, Gypsum of all forms and descriptions [excluding gypsum boards].

Gypsum of all forms and descriptions excluding gypsum boards [and plaster of paris. Herb, bark, dry plant, dry root, commonly known as jari booti and dry flower. Herbs, katha catechu , gambiar, bark, dry plant, dry root, commonly known as jari booti and dry flower. 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 thereof.

Rice Bran]. Imitation jewellery, beads of glass, plastic or of any metal other than precious metals, hair pins and parts and components of all of them. Hair Pins. Incense sticks commonly known as, agarbatti, [Dhoop, dhupkathi or dhupbatti. Industrial cables High voltage cables, plastic coated cables, jelly filled cables, optical fibre cables. Industrial cables high voltage cables, plastic coated cables, jelly filled cables, optical fibre cables.

Industrial inputs and packing materials as may be notified from time to time by the State Government in the Official Gazette. Iron and steel, that is to say, i pig. Jute that is to say, the fiber extracted from plants belonging to the species Corchorus Capsularies and Corchorus. Jute that is to say, the fiber extracted from plants belonging to the species Corchorus Capsularies and Corchorus oiltorius and the fiber known as mesta or bimli extracted from plants of the species Hibiscus Cannabinus and Hibiscus subdariffa-varaltissima and the fibre known as Sunn and Sannahemp extracted from plants of the species Crotalaria Juncea, whether baled or otherwise.

Lac, shellac, and their products. Lac, shellac and their products sold on or after 1st April, ]. Napa Slabs Rough flooring stones [and Shahabadi stones. Non-ferrous metals and alloys in primary forms and scrap as may be notified from time to time by the State Government in the Official Gazette. Latifolia, Bassia, Latifolia and Madhuca longifolia Syn. Glabra ; xiv Kusum Schlechera Oleosa, Syn.

Paper, newsprint, paper board [waste paper, computer paper, stationery of all types, carbon paper, ammonia paper. Paraffin wax of food grade standard and other than food grade standard including standard wax and match wax; slack wax. Pipes of all varieties including G. Pipes, C. Plastic granules, [master batches, plastic powder and scrap. Poultry machinery and equipments as may be notified, from time to time, by the State Government in the Official Gazette.

Printed material including annual reports, application forms, account books, calendars, diaries, catalogues, race cards and publications which mainly publicise goods, services and articles for commercial purposes.

Rail coaches, engines and wagons [and parts thereof]. Readymade garments and other articles of personal wear, clothing accessories, made up textile articles of personal wear, clothing accessories, made up textile articles and sets as may be notified, from time to time, by the State Government in the Official Gazette.

Renewable energy devices and spare parts as may be notified from time to time by the State Government in the Official Gazette. Renewable energy devices as may be notified, from time to time, by the State Government in the Official Gazette and spare parts thereof. Ribbon, Bow and Kajal. Roasted or fried pulses including gram [except when served for consumption].

Rock Salt. Rubber that is to say a raw rubber, b latex c dry ribbed sheet of all grades. Safety Helmets. Sewing machines [and parts, components and accessories thereof.

Sewing machines and parts, components and accessories thereof [and all kinds of sewing needles and knitting needles]. Sewing machines and parts, components and accessories thereof and all kinds of sewing needles and knitting needles. Skimmed milk powder [and UHT milk. Species of all varieties and forms including cuminseed, aniseed, turmeric and dry chillies.

Spices including cumin seed, hing asafoetida , aniseed, saffron, pepper and poppy seed]. Tractors, [being agricultural tractors] trailers and trolleys [being agricultural trailers and trolleys] threshers, harvesters and attachments and parts, thereof.

Tractors, [being agricultural tractors] trailers and trolleys [being agricultural trailers and trolleys] threshers, harvesters and attachments and parts, components, accessories and tyres and tubes thereof. Transformers and components and parts thereof.

Varieties of sugar, tobacco, textile and textile articles as may be notified from time to time by the State Government in the Official Gazette. Windmill for water pumping and for generation of electricity [and its components, parts and accessories. Windmill for water pumping and for generation of electricity and its components, parts and accessories. Zari and embroidery materials of gold, silver and gilded metal, badla and kasab. Embroidery or Zari material that is to say,— i imi; ii zari; iii kasab; iv saima; v dabka; vi chumki; vii gota; viii sitara; ix naquasi; x kora; xi glass beads; xii badla; xiii gizal; xiv embroidery machines; xv embroidery needles.

Embroidery or Zari material that is to say,— i imi; ii zari; iii kasab; iv saima; v dabka; vi chumki; vii gota; viii sitara; ix naquasi; x kora; xii badla; xiii gizal; xiv embroidery machines; xv embroidery needles. During the period starting on 1st May, and ending on 31st March, a Dry fruits including raisins and currants; b Tea in leaf or powder form including instant tea. Dry fruits excluding cashew kernels and cashew nuts and those to which entry 59 of Schedule A Applies.

Dry fruits excluding raisins and currants. Papad, except when served for consumption sold on or after 1st October Clearing nuts Shikekai and Soap nuts Ritha in whole or powder form.

Clearing nuts. Shikekai and Soap nuts Ritha in whole or powder form. Cotton ginning and pressing machinery covered by sub-heading 19 10 of the Central Excise Tariff Act, Vehicles operated on Battery or Solar power. Adult diapers and sanitary napkins. Foreign liquor as defined from time to time in rule 3 6 1 of the Bombay Foreign Liquor Rules, Foreign liquor as defined from time to time in rule 3 6 1 of the Bombay Foreign Liquor Rules, [, excluding wine].

Foreign liquor as defined from time to time in rule 3 6 1 of the Bombay Foreign Liquor Rules, , excluding wine. Liquor imported from any place outside the territory of India, as defined from time to time in rule 3 4 of Maharashtra Foreign Liquor Import and Export , Rules Liquor imported from any place outside the territory of India, as defined from time to time in rule 3 4 of Maharashtra Foreign Liquor Import and Export , Rules [, excluding wine].

Liquor imported from any place outside the territory of India, as defined from time to time in rule 3 4 of Maharashtra Foreign Liquor Import and Export , Rules , excluding wine. Wines, as defined, from time to time, in rule 3 6 1 of the Bombay Foreign Liquor Rules, and in rule 3 4 of the Maharashtra Foreign Liquor Import and Export , Rules [but excluding to those entry 3B of this Schedule applies]. Aviation Turbine Fuel Duty paid when sold within Maharashtra excluding the geographical limits of Brihan Mumbai Corporation and Pune District during the period starting on 1st April, and ending on 31st March, Aviation Turbine Fuel Duty paid when sold within Maharashtra excluding the geographical limits of Brihan Mumbai Corporation and Pune District during the period starting on 1st April, and ending on [31st March, or the date on which the Goods and Services Tax Act comes into force, whichever is earlier.

Tobacco, manufactured tobacco and products thereof including cigar and cigarettes [but excluding. Tobacco, manufactured tobacco and products thereof but excluding,—. XIII of , dated the 31st March, Extraordinary No. XIV of dated the 31st March, w. The amount so paid under this section shall be deemed to have been paid on behalf of the auction purchaser, dealer or person and it shall be adjusted towards their tax liability, if any.

Section 51 was substituted by Maharashtra 32 of , Section 50, w. Prior to its substitution read as under: Provisional refunds 1 If a registered dealer has filed any returns or revised returns as required by or under this Act, and such returns show any amount to be refundable to the said dealer, then the said dealer may apply in the prescribed form to the Commissioner for grant of a provisional refund pending assessment.

Schedule E Goods not covered Elsewhere for which the rate of Tax is Revolutionising Law Reporting! Install Now! Get it Now! Instant Activation! Mobile Username and password will be sent on this number :. Close Activate Trial Pack. Headlines with Full Text of Cases! Searchable Back Volumes from ! Searchable Back Volumes! With Searchable Back Volumes from ! Explanation III. If within the period aforesaid, an application in writing in the prescribed form raising an objection as to such exercise of power by or the jurisdiction of any such officer or person is made to such officer or person, he shall refer the question to the Commissioner, who shall, after giving the applicant a reasonable opportunity of being heard, make an order determining the question.

The order made by the Commissioner shall be final. In case of fresh registration Proof of constitution of business as appropriate :. In case of proprietary firm: No proof required.

In case of partnership firm: Registered or unregistered Copy of partnership deed. In case of other constitution: Copy of relevant documents. Copy of driving licence. Copy of election photo identity card. Copy of latest paid electricity bill in the name of the applicant. Proof of place of business In case of owner: Proof of ownership of premises; viz. Challan in original showing payment of registration fee. As per new procedure, the amount of fees is payable through a bank draft to be deposited with the registering authority along with the application.

Registration in case of change in constitution of the dealer Proof of change in constitution e. Copy of latest return-cum-challan. Pay order for payment of fees. PAN of new firm. Proof of permanent residential address. Registration in case of transfer of business All documents from 1 to 6 given in 'A'. Copy of transfer deed. Copy of latest return-cum-challan of the original dealer. In case of corporate bodies, the details of place of residence and PAN, etc.

Further, in case of Voluntary Registration, it is necessary that the applicant dealer is having a current bank account and such dealer has to be introduced either by a registered dealer or by an advocate, chartered accountant or sales tax practitioner.

The fees payable for voluntary registration is Rs. In addition to payment of fees, as mentioned above, a dealer seeking Voluntary Registration, on or after 16th August , has to be make an advance payment of Rs. This advance may be adjusted by the dealer against tax, interest or penalty, if any, payable during the year of registration or in the immediate succeeding year.

Any amount remaining unadjusted after the end of the 2nd year shall be refunded. Rate of Tax: [Secs. A dealer is liable to pay tax on the turnover of sales of goods, within the State, as per the rates specified in the schedules.

The tax so payable for any tax period shall be reduced by the amount of input tax credit set off for which the dealer is eligible during the same tax period. Tax Period in relation to a dealer may be a calendar month, quarter a period of three months; i. Filing of Returns and payment of Taxes. Every registered dealer shall be required to file correct, complete and self-consistent return, in prescribed form, by the due date. For the periods commencing from Category Periodicity 1.

C Newly registered dealers w. All other dealers whose tax liability, in the previous year, exceeds Rs. Monthly The due date for filing return and for payment of taxes continues to be same i.

For half yearly it is extended to 30 days from Further all returns can be uploaded within further period of 10 days from the end of due date as per Trade Circular Nos.

Tax Liability for the purpose means aggregate of taxes payable by a registered dealer, in respect of all places of business within the State of Maharashtra, under the Central Sales Tax Act and MVAT Act after adjustment of amount of set off claimed. The sales tax department is determining, from time to time, periodicity of returns of all dealers and is made available on website. The dealers are required to file return as per the periodicity determined by the department.

If there is any mistake in it, the dealers are required to approach the concerned officer for correction in it. It may be noted that failure to file return as per prescribed periodicity, within the prescribed due date, attracts mandatory penalty of Rs. Return Forms and Payment of Tax. From 1st April , all dealers, whether required to file monthly, quarterly or six monthly returns, have to submit their returns in electronic format only. There are separate return forms prescribed for various categories of dealers, i.

A dealer has to use appropriate form as may be applicable to him. All these forms have to be submitted electronically within the prescribed due date. A dealer shall first make payment of tax due in to the Government treasury through challan Form No.

A grace period of 10 days has been permitted for uploading of e-returns but the tax due, if any, has to be paid within the prescribed due date. It may further be noted that from 1st June, it is now mandatory for the dealers required to file monthly returns to make payment of taxes electronically.

Such interest is mandatory and shall be paid before filing of return. As per the provisions of MVAT, refund cannot be adjusted against liability of the subsequent year; i.

However, for refunds relating to financial years as well as for , the Commissioner has issued Trade Circulars whereby the refund for these financial years could be carried forward to the subsequent year. Revised return, for any period, can be filed within 9 months from the end of the year in which such tax period falls or before receipt of notice for assessment, whichever is earlier.

Eligibility : — All registered dealers, whether manufacturer or traders, are eligible to take full set off of the taxes paid on inputs; i. ITC on Capital Goods : — Tax paid on certain items of capital goods defined such as machinery, components, parts and spares etc. On certain other items of capital assets such as furniture and fixtures, office equipments, etc. Reduction in set off : The amount of set off, available to a registered dealer, shall be reduced to the extent as provided, under the following circumstances: -.

No such reduction if such branch transferred goods is received back in the State within a period of 6 months whether after processing or otherwise.

Specified percentage of set off, if taxable goods used in Works Contract for which the dealer has chosen to pay tax under the Composition Scheme. In case of Hotels and clubs covered by this Rule, in addition to set off on goods sold as above, the set off will be available on capital assets and consumables pertaining to kitchen and service of foods and drinks.

In case of closure of business, the set off on goods held in stock other than capital assets , on the date of closure, to be disallowed and accordingly be reduced fully. This is not applicable to dealer who leases these goods. Wherever such reduction in set off is required to be done, it shall be done in the tax period in which such contingency arises. If, for the purpose of reduction of set off, wherever required, it is not possible to identify the corresponding purchases then proportionate reduction on FIFO basis.

Set off to be allowed only to a registered dealer. A valid Tax Invoice is must to claim set off. The set off on eligible goods, purchased on or after 1st April , has to be claimed in the tax period in which the goods has been purchased entered in the books of account. In case of newly registered dealers, set off can be claimed on the goods including capital assets purchased before the date of registration, within the same financial year, provided that the goods so purchased is not sold or disposed of before the date of registration.

Effective from Tax on earlier transaction is received in Government Treasury. No set off :- No set off, under any Rule shall be admissible in respect of;. Purchase of passenger motor vehicles and parts components and accessories thereof unless the dealer is engaged in the business of trading in motor vehicles or transferring the Right to Use Leasing.

Purchase of motor spirit by any dealer other than a dealer in motor spirit. Purchase of Crude Oil, used by an oil refinery for refining. Any purchase of consumables or capital assets by a job worker pure labour job , whose only sales are waste or scrap of goods obtained from such labour job.

Such units are entitled for refund of tax paid on purchases. Soft wares in the hands of a trader in Soft wares. Copyrights, if resold within 12 months from the date of purchase. Except above, all other intangible goods are debarred from set off. However, a contractor, who undertakes construction of immovable property by way of works contracts, is eligible to claim setoff on purchase of such goods.

There is no set off of CST paid on inter-state purchases. There is no set off for any other taxes paid such as excise duty, import duty, service tax, octroi or such other levy or levies. The excess credit may be carried forward in this manner till the end of the accounting year. The balance, if any, thereafter shall be claimed as a refund in Form from the department, within a period of three years from the end of the year for which it relates.

Exports : — Exports are treated as zero-rated. Thus no tax is payable on export of goods out of India. As per earlier provisions of MVAT Act, refund could not be adjusted against liability of the subsequent year; i. However, the Commissioner of Sales Tax was having powers to permit carry forward of refund of one financial year to the subsequent financial year.

Accordingly, circulars were issued from time to time. VIII of , which provides that for the period commencing on or after 1st April, , a dealer whose refund claim in a year is Rupees Five lakhs or less, may carry forward such refund to the return or revised return for immediate succeeding year to which such refund relates.

Thus, excess credit if any up to Rupees Five lakhs in the return of the last period of a financial year can now be carried forward to next financial year. Applicable for financial year and onwards. At his own — to rectify any mistake or omission — within 10 months from the end of financial year in which such tax period falls or before receipt of notice for assessment, whichever is earlier,. This return shall also be one single return annual revised return for the whole year. It has further been provided that any such person or dealer cannot furnish more than one revised return under each of aforesaid clauses a to c and such revised return may include revision of original return or revised return filed earlier.

Ref: Trade Circular 6T of dated 14th May, The Commissioner of Sales Tax is empowered to grant administrative relief in cases of genuine hardship whether to a particular dealer or to a class of dealers or in general.

Circulars to this effect have been issued from time-to-time. Some of these circulars are:. Trade Circular Nos. Eligibility: All registered dealers, whether manufacturer or traders, are eligible to take full set off of the taxes paid on inputs; i.

ITC on Capital Goods: Tax paid on certain items of capital goods defined such as machinery, components, parts and spares etc. Reduction in set-off: The amount of set off, available to a registered dealer, shall be reduced to the extent as provided, under the following circumstances:. It is further provided, w. Provided further that no such reduction, if such branch transferred goods is received back in the State within a period of 6 months, whether after processing or otherwise.

Specified percentage of set off, if taxable goods used in Works Contract for which the dealer has chosen to pay tax under the Composition Scheme as provided in section 42 3. Applicable up to , refer Notification No. In case of hotels and clubs covered by this Rule, in addition to set off on goods sold as above, the set off will be available on capital assets and consumables pertaining to kitchen and service of foods and drinks. In case of closure of business, the set off on goods held in stock other than capital assets , on the date of closure, to be disallowed and accordingly be reduced fully.

This is not applicable to dealers who are in the business of leasing of these goods. Wherever such reduction in set off is required to be done, it shall be done in the tax period in which such contingency arises.

If, for the purpose of reduction of set off, wherever required, it is not possible to identify the corresponding purchases then proportionate reduction on FIFO basis. The set off on eligible goods, purchased on or after 1st April , has to be claimed in the tax period in which the goods have been purchased entered in the books of account.

In case of newly registered dealers, set-off can be claimed on the goods including capital assets purchased before the date of registration, within the same financial year, provided that the goods so purchased is not sold or disposed of before the date of registration. Effective from The amount of set off on any purchase of goods shall not exceed the amount of tax in respect of same goods, actually paid, if any, under the MVAT Act, or any earlier law, into the Government treasury, except to the extent where purchase tax is payable by the claimant dealer on the purchase of the said goods effected by him.

It has further been clarified through section 48 5 that where tax levied or leviable under MVAT Act or any earlier law is deferred or is deferrable under any Package Scheme of Incentives, implemented by the State Government, then the tax shall he deemed to have been received in the Government Treasury for this purpose.

Purchase of passenger motor vehicles and parts components and accessories thereof. Purchase of motor spirit specified by any dealer other than a dealer in motor spirit.

Any purchase of consumables or capital assets by a job worker pure labour job , whose only sales are waste or scrap of goods obtained from such labour job. Purchase of raw material made by a dealer holding Entitlement Certificate under a Package Scheme of Incentives. Such units are entitled for refund of tax paid on purchases. Copyrights, if resold within 12 months from the date of purchase.

Except above, all other intangible goods are debarred from set off. However, a contractor, who undertakes construction of immovable property by way of works contracts, is eligible to claim set off on purchase of such goods. There is no set-off for any other taxes paid such as excise duty, import duty, service tax, octroi or such other levy or levies.

The unadjusted credit i. The excess credit may be carried forward in this manner till the end of the accounting year. The balance remaining at the end of financial year, if more than the permitted limit at present rupees five lakhs , shall be claimed as a refund in Form from the department, within a period of eighteen months from the end of the year for which it relates.

However, if the excess credit at the end of financial year is within the permissible limit up to rupees five lakhs , the dealer may opt either to carry forward it to the next financial year or claim refund by submitting Form as per prescribed procedure. Exports: — Exports are treated as zero-rated. Thus no tax is payable on export of goods out of India. However full set-off is available of input tax paid on purchases, from within the State of Maharashtra, used in such exports.

Thus the tax on such sale is levied according to the provisions of CST Act. Such transactions are not liable for MVAT. However full input tax credit is available for the value added tax paid in Maharashtra. A registered dealer is entitled to claim set off only on the basis of a valid Tax Invoice. Set-off is not available on purchases effected through a bill or cash memorandum.

To be a valid Tax Invoice, section 86 2 provides that it shall contain the following particulars:—. Such dealers shall issue a Bill or Cash Memorandum. A bill or cash memorandum should be serially numbered, dated and signed by the dealer or his servant or manager. Earlier the period of preservation was three years only however the period of preservation it is now changed to eight years by an amendment through Mah.

Act No. VIII of dated Section 42 provides for Composition Schemes for various classes of dealers, as may be notified by the State Government from time-to-time.

The dealers opting for such composition schemes shall pay tax at such rates, with such conditions, as may be prescribed in the scheme. Accordingly, the Government of Maharashtra has notified different types of composition schemes for following classes of dealers:. It may be noted the Composition Scheme for Retailers has been redesigned w. Refer Trade Circular 17T of dated 20th September, There is no separate Act governing works contract transactions, all such transactions are now taxable as deemed sales under the MVAT Act.

The rate of tax, on such deemed sales of goods, used in the execution of works contract, shall remain same as prescribed in the aforesaid schedules to the respective goods. However the sale price of such goods has to be determined in accordance with the provisions contained in Rule 58 of the Maharashtra Value Added Tax Rules, Accordingly the value of the goods, at the time of the transfer of property in the goods whether as goods or in some other form involved in the execution of works contract, has to be determined by effecting the following deductions from the value of entire contract in so far as the amounts relating to the deduction pertain to the said works contract:.

Amounts paid by way of price for sub-contract, if any, to sub-contractors. Charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract. Cost of consumables such as water, electricity, fuel used in the execution of works contract, the property in which is not transferred in the course of execution of the works contract. Cost of establishment of the contractor to the extent to which it is relatable to supply of the said labour and services. Other similar expenses relatable to the said supply of labour and services, where the labour and services are subsequent to the said transfer of property.

Profit earned by the contractor to the extent it is relatable to the supply of said labour and services. Provided that where the contractor has not maintained accounts which enable a proper evaluation of the different deductions as above or where the Commissioner finds that the accounts maintained by the contractor are not sufficiently clear or intelligible, the contractor at his option or, as the case may be, the Commissioner may in lieu of the deductions as above provide a lump sum deduction as provided in the Table below and determine accordingly the sale price of the goods at the time of the said transfer of property.

The percentage given in the Table should be applied on total contract price after deducting the price on which tax is paid by sub-contractor. It is also provided that if any tax is separately charged by the contractor as per terms of contract then the deduction should be after excluding such separate tax. The value of goods so arrived at under Rule 58 1 shall, for the purposes of levy of tax, be the sale price or, as the case may be, the purchase price relating to the transfer of property in goods whether as goods or in some other form involved in the execution of a works contract.

The dealer, opting to pay tax as per the above scheme, is entitled to take full input tax credit; i. Thus no VAT on service tax collected separately. In case of a construction contract, where along with the immovable property, the land or, as the case may be, interest in the land, underlying the immovable property is to be conveyed, and the property in the goods whether as goods or in some other form involved in the execution of the construction contract is also transferred to the purchaser, the value of the said goods at the time of the transfer shall be calculated after deducting cost of the land from the total agreement value.

The cost of the land shall be determined in accordance with the guidelines appended to the Annual Statement of Rates prepared under the provisions of the Bombay Stamp Determination of True Market Value of Property Rules, , as applicable on the 1st January of the year in which the agreement to sell the property is registered Provided that, after payment of tax on the value of goods, determined as per this rule, it shall be open to the dealer to provide before the Department of Town Planning and Valuation that the actual cost of the land is higher than that determined in accordance with the Annual Statement of Rates including guidelines prepared under the provisions of the Bombay Stamp Determination of True Market Value of Property Rules, On such actual cost being proved to be higher than the Annual Statement of Rates, the actual cost of the land will be deducted and excess tax paid, if any, shall be refunded.

Where the dealer undertakes the construction of flats, dwellings, buildings or premises and transfers them in pursuance of an agreement along with the land or interest underlying the land then, after deductions under sub-rules 1 and 1A from the total contract price, the value of the goods involved in the works contract shall be determined after applying the percentage provided in column 3 of the following TABLE depending upon the stage at which the purchaser entered into contract.

For determining the value of goods as per the Table clause a , it shall be necessary for the dealer to furnish a certificate from the Local or Planning Authority certifying the date of completion of the stages referred above and where such authority does not have a procedure for providing such certificate then such certificate from a registered RCC consultant.

If the dealer fails to establish the stage during which the agreement with the purchaser is entered, then the entire value of goods as determined after deductions under sub-rules 1 and 1A from the value of the entire contract, shall be taxable. After deducting there from the amount paid towards sub-contract, if any.

Sub-section 3A is inserted w. A dealer contractor is free to choose either sale price method or composition scheme, as he may deem fit, qua each contract. There is no requirement of any prior approval etc. The relationship between the contractor and sub-contractor is considered as that of principal and agent.

Thus, the responsibility for payment of tax is joint and several. It has been provided, therefore, that liability to pay tax may be discharged either by the main contractor or the sub-contractor. If the main contractor chooses to pay tax on the entire contract, he may issue a declaration and certificate in Forms and whereby the sub-contractor shall not be liable to pay tax on the portion of work undertaken by him.

Similarly where the sub-contractor undertakes to pay tax, he shall issue a declaration and a certificate, in Forms and , to the main contractor regarding payment of taxes made by him on his portion of works contract.



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