Maharashtra VAT Rules- By MITZZ-XP

8/9/2019 Maharashtra VAT Rules- By MITZZ-XP

1/75C:\ DOCUME~1\ rajurkar\ Des kto p\ Draft Maharashtra Value Added Tax Rules.d oc,

T h e B i ll f o r t h e i n tr o d u c t i o n o f

VAT i s not y e t not if i e d in th e

O f fi c i a l G a z e t t e.

A Draft Sc h e m e of Rules for t h e

pro po se d Ac t is n ot ifie d for Public

Scrutiny



NOTIFICATION

Finance Department,

Mantralaya, Mumbai 4 0 0 03 2. Dated t he _______ 20 0 5

In exercise of the powers conferred by section 83 of the Maharastra

Value Added Tax Act, 2002 and all other powers enabling i t in this behalf

(Mah. LX of 2002), the Government of Maharashtra hereby makes the

followin g ru les , n a m ely:-

1 . Short Title.(1) These rules may be called the Maharashtra Value AddedTax Rules, 2005, (Mah.LX of 2003.)

(2) Th ey sh all come into effect from t h e 1s t

Apr il 20 05 .

2. Definitions,-- (1) In thes e ru les, u nless th e context otherwise requires,--

(a) "the Act" mea ns the Mah ara sh tra Valu e Added Tax Act, 200 2 (Mah .

LX of 2002);

(b) "agent" means a person authorised in writ ing under section 82 of

the Act to appear on behalf of a dealer or other person before any

au thority appointed or const i tuted u nd er this Act ;

(c) "assess ing authori ty" means any authori ty competent to assess a

dealer or , as the case may be, any authori ty to whom the power to

assess a dealer has been delegated by the Commissioner and within

whose jurisdict ion the place of business or , as the case may be, the

principal place of bu siness of the d ealer, is s itu ated ;

(d)"Comm issioner" includ es a n Additiona l Comm issioner , a J oint

Commissioner, and such other officers to whom the Commissioner

delegates his powers and dut ies ei ther general ly or as respects any

pa rt icular ma t ter or clas s of ma t ters ;



(e) "Form" mea ns a form ap pen ded to th ese ru les;

(f) "Government Treasury" means

(i) as respects a dealer who is, or is l iable to be, registered within the

jurisdiction of a registering authority in Brihan Mumbai, the bank or

Treasury shown in column number 2 , i f he makes payment in the

ma nn er shown in co lum n n um ber 3 :-

Sr .

No.

Nam e of the Ba nk or Treasu ry

for ma king payment

Man ner of paymen t

1 2 3

3 (a ) 3 (b)

i) Th e Res erve Ba nk of In dia ;

Mumbai ,

By

cash , o r

By cheque drawn on any

bran ch of an y bank s itua ted

in Mah aras h t ra .

ii) An y b ra n ch of th e Sta te Ba nk

of Ind ia or an y of i ts Su bs idiary

Banks as defined in the State

Bank of India (Subsidiary

Banks) Act, 1959 (38 of 1959)

s itua ted in Br ihan Mum bai

By

cash , o r

By cheque drawn on an y

bran ch of an y bank s itua ted

in Brihan Mum bai .

iii) An y b ra n ch s itu a ted in B rih a n

Mumbai of a bank appointedby the Reserve Bank of India

as i t s agen t under the

provisions of sub-section (1) of

section 45 of the Reserve Bank

of Ind ia Act, 1 93 4 (2 of 19 34 );

By

cash , o r

By chequ e drawn on the

s am e b ranch .

iv) An y b ra n ch situ a ted in Brih a n

Mumbai of a bank notified by

the State Government in the

Official Gazette for the

purposes of this paragraph

after consultation with the

Reserve Bank of In dia,

By

cash , o r

By chequ e drawn on the

s am e b ranch .

(ii) as respects a dealer who is, or is liable to be, registered within the

ju risdiction of a r egistering au thority ou tside Brihan Mu mb ai,

(A) where th e principal place of bu siness of the dea ler is si tua ted a t th e d istrict



headquar ters , the bank or Treasury shown in co lumn number 2 i f he makes

payment in th e man ner sh own in colum n n um ber 3 :-

Sr .

No.

Name of the Ban k or Trea su ry for

ma king payment

Man ner of paymen t

1 2 3

3 (a ) 3 (b)

i) Res er ve Ba n k of In d ia , CBD Bela pu r

where the principal place of business of

the dealer is si tuated within the l imits of

th e Mun icipa l corpora tion of Navi

M um ba i

By cash,

or

By cheque drawn

on any branch of

any Bank s i tua ted

in Maharash t ra .

ii) Re s er ve Ba n k of In d ia , Na gp u r wh e re th e

principal place of business of the dealer

is si tuated within the l imits of the

Mun icipa l Corpora tion of Nagpu r;

By cash,

or

By cheque drawn

on any Branch of

any Bank s i tua ted

in the Nagpur

Distsrict .

iii)

The Treasury of the district where the

principal place of business of the dealer

within that jurisdiction is si tuated.

By ca s h . --

iv) An y b ra n c h of t h e S ta t e B a n k of In d ia o r

an y of i ts Su bsidiary Ban ks as defined in

the State Bank of India (Subsidiary

Banks) Act,1959 (38 of 1959) si tuated at

the Dis t r ict Head qua rters .

By cash,

or

By cheque drawn

on any branch of

any bank s i tua ted

at the s am e dis t r ict

head quar ters .

v) An y b ra n ch of a b an k a pp oin ted b y th e

Reserve Bank of India as i t s agent under

th e pr ovisions of su b s ection (1) of section

45 of the Reserve Ban k of India Act, 19 34

(2 of 1934) si tuated at the District

Headquar ters .

By cash,

or

By cheque drawn

on t he s am e

branch

vi) An y br a n ch s it u a ted a t t h e dis tr ict

headquarters of a bank, not i f ied by the

State Government in the Official Gazette

for the purposes of this paragraph after

consultation with the Reserve Bank ofIndia.

By cash,

or

By cheque drawn

on t he s am e

branch .

(B)if the principal place of business of the dealer is si tuated at a placeother tha n the dis t r ict hea dqua rters , the bank or the Treas ur y sh own

in co lumn number 2 , i f he makes payment in the manner shown in

colum n n um ber 3 :-



Sr.

No.

Name of the Bank or Treasury for making

payment

Man ner of pa yment

1 2 3

3 (a ) 3 (b)

i) Th e Tr ea s ur y or su b -Trea su ry a s th e ca se

may be of the district or taluka, where the

principal place of business of the dealerwithin that jurisdiction is si tuated;

By ca s h , --

ii) An y b ra n ch of t h e S ta t e Ba n k of In d ia or a n y

of i ts Subsidiary Banks as defined in the

State Bank of India (Subsidiary Banks) Act,

195 9 (38 of 195 9) si tua ted in th e District;

By cas h , o r By cheque

d rawn on any

branch of any

bank s i tua ted

in the same

ta luka .

iii) An y b ra n c h of a b an k a pp oin t ed by t h e

Reserve Bank of Ind ia a s i t s agent u nd er the

provisions of sub section (1) of section 45 of

the Reserve Bank of India Act, 1934 (2 of

1934) s i tuated in the Dis t r ict which branch

is notified from time to time in the Official

Gazette by th e Comm issioner of Sales Tax.

By cas h , o r By cheque

drawn on the

s am e b ranch .

iv) a n y b ra n ch s it u a te d in t h e Dis tr ict of a Ba n k

notified by the State Government for the

pu rposes of this pa ragraph after

cons u ltation with th e Reserve Ban k of India.

B y C a s h or B y C h eq u e

drawn on the

s am e b ranch .

(III) as resp ects a n on-residen t dea ler, the Res erve Ban k of India, Mu mb ai;

(g) Mega Project m ean s t h e Eligible Indu st rial Unit in res pect of wh ich th e

Eligibility Certificate is issued in terms of Government Resolution, Industries,

Energy and Labour Department, No. IDL.1096 (13211)IND-8, dated the 20 th

J un e 1997 as amend ed from t ime to t ime.

(h ) "Pack a ge Sch em e of Incen tives " m ean s an y of th e following sch em es

designed b y the Sta te Governm ent , a s a mend ed, from t ime to t ime, n am ely:-

(i) the 1979 Scheme as out l ined in the Government Resolut ion,Industries, Energy and Labour Department, No. IDL.

7079 / (2043 )IND-8, dated the 5 th January 1980 read wi th the



Government Resolut ion, Industr ies , Energy and Labour

Departmen t , No. IDL. 708 2/ (3559 )/ IND-8, dated th e 5 th J u l y

1982 ;

(ii) the 1983 Scheme as out l ined in the Government Resolut ion,Industries, Energy and Labour Department, No. IDL.

1082 / (4077 )/ IND-8, da ted the 4th May 1983 read with


Departmen t , No. IDL. 108 8/ (6612)/ IND-8, dated the 2 5 th March

1988 ;

(iii) the Electronic Scheme as out l ined in the GovernmentResolution, Industries, Energy and Labour Department, No. IDL.

l085/ (5315)/ IND-8, dated th e 3rd September 1985 r ead with th e


Departmen t , No. IDL. 1085/ (5315 )/ IND-8, da ted the 29 th J u ly

1987 ;

(iv) the 1988 Scheme as out l ined in the Government Resolut ion,Industries, Energy and Labour Department, No. IDL.

1088/ (6603)/ IND-8 , da ted the 30 th September 1988;

(v) the 1993 Scheme as out l ined in the Government Resolut ion,Industries, Energy and Labour Department, No. IDL.

1093 / (8889 )/ IND-8, dated the 7th May 1993;

(vi) Package Scheme of Incentives for Tourism, 1993, as outlined inthe Government Resolution, Home Department (Tourism) No.

MTC-91/ GR-409/ (Tourism), da ted the 30 th November 1993;

(vii) New Package Scheme of Incentives for Tourism Projects -1999,as out l ined in the Government Resolut ion, Home Department

(Tour ism), No. MTC-0399 / GR-142 / (Tour ism), da ted th e 8 th J u l y



1999 ;

(viii) Power Generation Promotion Policy, 1998, outlined in theGovernment Resolut ion, Industr ies , Energy and Labour

Departmen t , No. NCP-1097/ CR-57/ NRG-7, da ted the 12 th March

1998 ;

(i) "principal place of business" means in relation to a dealer in any area

within the jurisdiction of a registering authority, the place of business

mentioned as his principal place of business in the certificate of registration

granted u nd er the Act ;

(j) "Qua rter", mean s, th e period of three m onths ending on th e 30th J u ne,

30th September, 3ls t December or 3ls t March,

(k) "registering authority" means --

(i) as respect a dealer not being a n on-res ident dea ler , the as sess ingauthority having jurisdiction over the local area in which any

place or places of business of the dealer are si tuated; and

(ii) as respect a non-res ident dealer , the assess ing authori tydesigna ted as the a ss ess ing au thority for the non-res ident ci rcle,

Mumbai ;

(l) "Sch edu le" mea ns a S ched u le ap pen ded to th e Act;

(m ) "sect ion " m ea n s a section of th e Act;

(n) Very Large Project means the Eligible Industrial Unit in respect of which

the Eligibility Certificate is issued in terms of the Government Resolution,

Ind u str ies , Energy and Labou r Departm ent No.IDL-1098/ 121/ IND-8,dated

the 11 th Augu st 1998 .

(2) The words and expressions used in these Rules but not defined

hereinabove shal l have the same meanings as respect ively ass igned to them



un der th e Act .

3. Goods Returned And Deposits Refunded.The period for return of goods

and refund of deposits for the purposes of clauses (32) and (33) of section 2

shal l be s ix months from the date of the purchase or , as the case may be, the

sale.

4. Subordination Of Office rs. For th e pu rposes of su b-section (9) of section

10, th e su bordina tion of officers a nd pers ons sh all be a s follows, tha t is to say,

--

S r . No . Des igna t ion of t he Officer Officer s hown in colum n nu m ber 2 s ha ll

be subordinate to the Officer shown in

Column number 3 wi th in whose

jurisdiction h e perform s h is fun ctions .

1 2 3

(i) a J oin t Com m is s ion er a n Add it ion a l Com m iss ion er

(ii) a Sen ior Depu ty

Commissioner

a J oint Comm issioner a nd an Addi t ional

Commissioner

(iii) a Dep u ty Com m is sion er A Sen ior Dep u ty Com m iss ion er, a J oin t

Commissioner an d an Addi t ional

Commissioner;

(iv) a n As s is ta n t

Commissioner or , as the

case may be, a Sales Tax

Officer.

a Deputy Commissioner, a Senior

Deputy Commissioner, a Joint

Commissioner and an Addi t ional

Commissioner;

(v) a n officer or pers on

app ointed un der claus e (f)

of sub-section (2) of

section 10

a Sales Tax Officer, an Assistant

Commissioner, a Deputy Comm issioner,

a Senior Depu ty Commissioner, a J oint

Commissioner and an Addi t ional

Commissioner,

5. Qualifications Of Members Of Tribunal And Term Of Office. (1) Every

mem ber of the Tribu na l sha ll be a person who

(a ) is or h as b een a J ud ge of the High Cou rt , or



(b) is or h as b een a Dis t r ict J u dge, or

(c) is qualified for appointm ent a s a District J u dge, an d h as held judicialoffice for n ot less th an ten years, or

(d)has, for a continuous period of not less than three years held an office,not b elow the ra nk of J oint Com missioner of Sales Tax, in th e Sa les Tax

Departmen t of the State Governm ent ; or

(e) i s a Chartered Accountant and has pract ised as such for not less thanseven year s, or

(f) not being a person described in clause (e), has in the opinion of theState Government, adequate knowledge of, or experience in accounting,

or ha s, in th e opinion of the Sta te Govern m ent, s pecial kn owledge of, or

experience in commerce or industry.

(2) A person appointed as a member of the Tribunal under clause (d) shall not

be eligible for further employment in the Sales Tax Department, after he

ceas es to h old office as a m emb er of the Tribu na l:

(3) The appointment of a member of the Tribunal may be terminated before

th e exp iry of h is ter m of office, if th e m emb er--

(a ) is a djud ged an ins olvent , or(b)engages during his term of office in any paid employment outside

th e d u ties of his office, or

(c) is , in th e opinion of the Sta te Govern men t u nfit to continu e in officeby reas on of infirm ity of mind or of body, or an y other rea son .

(4) A Member of the Tribunal shall, on the expiry of his term of office. be

eligible for re-appointment.

(5) A Member of the Tribunal may, at any t ime, by writ ing under his hand



addressed to the State Government, resign his office, and his resignation shall

tak e effect from th e da te on which i t is a ccepted.

6. Application For Registration Of Dealers Liable To Tax Under The Act.--

(1) In the case of a dealer who becomes l iable to pay tax under this Act, an

application for registration under section 16 shall be made,-

(a ) within thirty da ys from the a ppointed d ay, if he holds a certificate ofregis t rat ion or , as the case may be, a l icence granted under any of

the earlier laws and which is in force immediately before the

appointed day but does not hold a certificate of registration under

the Bombay Sales Tax Act, 1959 (Bom LI of 1959) immediately

before the appointed day ;

(b) in th e case of a d ealer to wh om s ub -section (2) of section 3 ap plies,within 30 days from the day on which his turn over of sa les and of

al l pu rcha ses du ring the year comm encing on the a ppointed d ay or ,

as the case may be, during any subsequent year , f i rs t exceeds the

releva n t lim it specified in su b-s ection (4) of section 3 ;

(c) in the case of a dealer to whom sub-section (7) of section 3 applies,who becomes l iable at any t ime after the appointed day to pay tax

under the Central Sales Tax Act , 1956 within thirty days of

incu rring s u ch liabil ity;

(d) in the case of a dealer to whom sub-section (8) of section 3 applies,within thi r ty da ys from the date of su ccession to the bu siness as

provided in clause (a) of sub-section (1) or sub-section (4) of section

44; and

(e) in the cas e of a pers on wh ose certificate of registra tion is l iable to becancel led on the ground that the place of business is changed to a

different local area, within thirty days of the change in place of



bu s iness ; and

(2) The application for registration shall be complete in all respects. An

application incomplete in any respect shall not be considered to be an

app licat ion m ade u nder th is r u le an d sh al l accordingly not be accepted.

(3) Where a dealer has more than one place of business within the State, he

shall make a single application in respect of all such places except any place

for which he has obtained a Certificate of Entit lement under any of the

Package Schemes of Incentives other than the Power Generation Promotion

Policy, 1998 specifying therein one of such places as the principal place of

business and submit i t to the registering authority within whose jurisdiction

su ch p rincipa l place of bu siness is s itua ted:

Provided that , such dealer may, at his opt ion, make a separate

application in respect of any of his other places of business, not being the

principal place of business, to the registering authority having jurisdiction

over su ch other p lace of bu siness .

Provided further that, where such dealer has obtained a Certificate of

En tit lemen t un der a ny of the Pack age Schem es of Incen tives, except the Power

Genera tion Pr omotion Policy 1998 , in resp ect of an y of his p laces of bu sines s,

he s ha ll make a separ ate ap pl icat ion to th e regis ter ing au thority within wh ose

jurisdiction such place of business is si tuated.

(4) Every app lication for registra tion sh all be m ad e, signed an d verified in th e

case of an y bus iness engaged in by,-

(a) an individual, by the proprietor or by a person having due authority

to act on beh alf of su ch p roprietor;

(b) a firm , by a pa rtn er th ereof;

(c) a Hindu Undivided Family, by the Karta or an a du lt memb er thereof;



(d) a body corporate (including a company, a co-operative society, or a

corporation or local authority) by a director, manager, secretary or the

principal officer thereof, or by a person duly authorised to act on i ts

behalf;

(e) an association of individuals to which clause (b), (c) or (d) does not

ap ply, by the p rincipa l officer of, or person ma na ging the b u sines s;

(f) any department of the Union Government or any State Government,

by a p erson d u ly au thorized to a ct on i ts beh alf.

(5) In the case of a firm every partner thereof shall furnish the declaration tothe registering authority as provided in the form for application for

registration.

(6)The person signing and verifying an application for registration shallspecify the capacity in which he does so, and shall wherever possible, give

particulars of the authority vested in him for signing and verifying the

application.

(7)Every person signing and verifying an application for registration in thecapacity specified in clause (a), (b), (c), (d) or (e) of sub-rule (3) other than the

Director, Manager; Secretary or Principal officer of, or a person duly

authorised to act on behalf of, a public l imited company, public trust ,

corporation or a local authority shall also furnish with the application a copy

of his recent photograph in passport size.

(8)The p erson so fu rnishing the ph otograph sh al l, when cal led u pon to do so,atten d b efore the registering au th ority an d s ign, b efore h im, on the copy of the

ph otograph furnish ed by him.

(9)Where the engagement in business is by an individual , a f i rm, a HinduUndivided Family or any unincorporated association of individuals, the name,



permanent res ident ial address and the Permanent Account Number, i f any,

under the Income Tax Act, 1961 (43 of 1961), of such individual, each of the

pa rtners of the f irm, m embers of the fam ily or , as the ca se m ay be, m embers

of the managing committee of the association and of persons having any

interes t in the business or the Karta of the said family shall be stated in the

ap plication for r egistra tion.

(10) Every application for registration shall state in general terms theclasses of goods in which the applicant deals and specify the nature of the

bus iness .

(11) A dea ler or a pers on wh o volu nta rily app lies for registration s h all,-(a ) have obtained the Permanent Account Number under the Income

Tax Act, 1961 and provide i t to the registering authority along with

proof of the sa me,

(b) ha ve a curren t ban k account a nd produ ce proof of the sam e, an d(c) be introduced by a registered dealer whose registration certificate is

in force on the date of introduction and who is registered under the

Act or as th e cas e ma y be, u nd er an y earlier law for five

cont inu ous years imm ediately preceding the year in which th e

application is made or by a Sales Tax Practi t ioner , or a Chartered

Accoun tan t or a Cost Accoun tan t or an Advocate;

7. Grant Of Certificate Of Registration.-- (1) Where a dealer applying for

registra tion is a firm, Hindu u n divided fam ily, body corpora te or a ssociation of

individuals or a department of a Government, the certificate of registration

shall be issued in the name of such firm, family, body corporate, association

or the depar tment of the Governm ent , as the cas e may be.

(2) Where a certificate of registration is issued on an application made

therefor, then



(a ) if it was made within the period specified in clause (a) of sub-rule (1)of ru le 6, it s ha ll tak e effect from the app ointed da y;

(b) if it was made within the period specified in clause (b) of sub-rule (1)of rule 6, i t shall take effect from the t ime on which the dealer 's

tu rn over first exceeded th e relevan t l imit sp ecified in su b-section (4)

of section 3;

(c) if it was made within the period specified in clause (c) of sub-rule (1)of rule 6, i t shall take effect from the day, the dealer becomes l iable

to pay tax u nd er the Cen tral Sales Tax Act , 1956;

(d) if i t was ma de on a ccoun t of incu rring liabili ty u nd er s ub -section (8)of section 3, it shall take effect from the date of succession if it is

ma de within th irty da ys of the incu rring of su ch l iab ili ty; an d

(e) if i t is made any time after the change of address of business to adifferent local area, it shall take effect from the date of the said

cha nge of add ress ;

(f) if it is made under sub-section (9) of section (3), it shall take effectfrom the date of application if the conditions laid down in the rules

an d s ection 1 6 a re fulfilled an d

(g) if su ch a pplication was m ad e after th e expiry of th e aforesaid period,it sh all tak e effect from th e date on wh ich th e app lication was ma de.

(3) Wher e the d ealer ha s two or more places of bu siness within the ju risdiction

of the registering authority, the registering authority shall issue to the dealer

one copy of the certificate of registration for each additional place of business

(n ot being m erely a wareh ous e) specified in the ap plication for registra tion .

8. Exhibition Of Certificate Of Registration.Every registered dealer shall

display conspicuously at each place of his business (not being merely a



wareh ous e) the certificate of registration or a copy thereof

9. Cancellation Of Certificate Of Registration. (1) An application for

cancellation of registration under sub-section (6) of section 16 shall be made

to the registering authority and if the application is made under clause (a) of

that sub-section, i t shall be made within thirty days of the date of

discontinuance, transfer or disposal of business or change of place of business

to a differen t local a rea .

(2) If the registering au thority is satisfied tha t the application is in order, i t

shall, by order in writing, cancel the registration with effect from a date fixed

in accordance with sub-rule (3). A copy of such order shall be served on the

dealer.

(3) Where registra tion is to be can celled -

(a) on th e grou n d referr ed to in clau se (a ) of su b-s ection (6) of section

16, the date on which the business has been discont inued or

otherwise disposed of or ha s been tran sferred, or the place of

business has been changed to a di fferent local area shal l be the

date of cancellation of registration;

(b) on th e groun d referred to in clau se (b) of su b-s ection (6) of sec tion

16, the date for cancellation of the registration shall not be later

tha n th e first da y of the mon th next following the da te of pa ssing of

the order r eferred to in s u b-ru le (2).

(4) Wher e the registration of a dealer is to be can celled un der the first

proviso to sub-section (6) of section 16, the Commissioner shall after giving

the dealer a reasonable opportunity of being heard, cancel the registration by

an order in writ ing with effect from such date as the Commissioner may fix to

be the date on which the business has been discont inued or t ransferred or

disposed off or cha nged to a differen t local area a s th e case m ay be. A copy of



su ch order sh al l be served on th e dealer .

(5) If the registration of a dealer is cancelled either on his application orunder the first proviso to sub-section (6) of section 16, the dealer shall

surrender the certificate of registration and the copies thereof, if any, granted

to him to the registering authority within fifteen days from the date of receipt

by h im of the ord er can celling th e registra tion.

10 . Addition al Copies Of Certificate Of Registration. (1) When a registered

dealer opens a new place of business in addition to the place or places which

were in existence at the t ime of his registration, the authority issuing a

certificate of registration, shall issue an additional copy of the certificate of

registra tion, on th e dealer 's app lying for the s am e.

(2) A registered dealer may obta in from the registering au thority a

duplicate copy of a certificate of registration or of an additional copy thereof,

iss u ed to him, bu t which is lost , des troyed, or defaced .

11. Production Of Certificate Of Registration, Etc. (1) The Commissioner

ma y, by notice in writ ing, requ ire a registered dea ler to p rodu ce before h im his

certificate of registration for the purpose of carrying out any amendment

therein u nd er the Act .

(2) Every such dealer shall , within ten days from the date of service on him of

a notice as aforesaid, produce the certificate of registration, to the

Commissioner.

12. Information Under Section 18 And Changes In Forms Of Certificate

Of Regist ration. (1) Informa tion u nd er section 18 sh all be given in

writing within sixty days from the date of the occurrence of any of the events

mentioned in that section to the registering authority.

(2) While giving any information under sub-rule (1), the certificate of

registra tion held by the dealer an d a ll copies th ereof sh all also be delivered to



the a u th ority to whom the information is given.

(3) Wher e, after the iss u e of certificate of registra tion u nd er ru le 7 an d copies

thereof, if any, obtained by the dealer from the authority issuing the

registration certificate, there have been any changes in the Form of certificate

of registration, either by way of amendment in the said Form or substi tution

thereof by a new Form, then within sixty days from such change, the dealer

shall deliver the certificate of registration and all copies thereof to the

registering a u thority.

(4) The registering au thority, sh all, u nless the certificate of registra tion so

delivered is not can celled by it , retu rn th e certificate of registra tion to the

dealer , af ter ma king therein s u ch a men dm ents a s m ay be necessa ry in view of

the information, or the changes in the said Form or issue a certificate of

registration in the new Form.

13 . Declaration Under Section 1 9. (1) Where the declaration under section

19 is to be made for the first t ime, i t shall be made within the respective

period specified in rule 6 for making an application for registration to the


(2) Where any such declaration is to be revised, i t shall be sent within thirty

da ys from the da te on which th e ma na ger or ma na gers p reviously declared are

changed to the registering authority.

(3) A declaration under sub-section (2) of section 19 shall be made to the


(a ) within sixty days from the appointed day by a dealer who is l iableunder sub-section (1) of section (3);

(b)at the t ime of ap plication for registra tion, if the dea ler is l iab le un derthe other provisions of section 3;

(c) within fifteen days of obtaining the Permanent Account Number,



under the Income Tax Act ,1961 i f the said number is obtained at

any time after applying for the certificate of registration.

14. Submission Of Returns.-- (1) The Forms of retu rn s m ay be obta ined from

the office of the assessing authority or after the 1 s t April 2006 may be

downloaded from th e website of the Sta te Govern men t. The form s m ay also be

obtained privately if they conform with the size of the forms issued by the

as sess ing au thority.

(2) Every registered dea ler, who is requ ired to fu rn ish a r etu rn sh all sub ject to

the provisions of this rule , furnish i t duly signed by him or by a person

au thorised by him to th e au th orit ies specified hereina fter, tha t is to sa y, -

(a) where tax including lump sum, interes t or penal ty is due and

payable according to the return, to the Government Treasury while

making payment of the tax, lump sum, penal ty or interes t under rule

29;

(b) where no tax including lump sum, penal ty or interes t i s due and

pa yable according to the return , the return sh al l be fu rnished, -

(i) to the registering authority (Non-Resident Circle), Mumbai, if

the dea ler has been regis tered by such au thority;

(ii) to th e a u th ority referr ed to in pa ra grap h (b) of su b-s ection (2)

of section 20, if the Commissioner has permitted the registered

dealer who has places of business within the jurisdiction of

different registering authorit ies, to furnish a consolidated return

in res pect of all or an y of thes e places of bu sines s; or

(iii) to the registering authority within whose jurisdiction the

place or places of business, as specified in the certificate of

registra tion of the r egistered d ealer is or ar e si tua ted.



(3) Every dealer who is required to fi le monthly returns under sub-rule (4), if

he is covered by th e notification issu ed u nd er su b-section (4) of section 41 a n d

if he is sp ecified in the sa id n otification for th e pu rposes of this s ub -ru le sha ll

fi le monthly returns within 15 days of the end of the month to which the

return relates :

Provided that, the said dealer may fi le the return in accordance with

clause(c) of sub-rule (4) if he makes ad-hoc payment equal to 80 per cent. of

the tax paid by him in respect the month imm ediately preceding the month

to which the retu rn relates and pa ys the remaining am oun t , if an y, at the

time of fi ling of the r etu rn in accorda n ce with su b-ru le(4).

(4) Subject to th e other p rovisions of this ru le an d of rule 15.

(a ) every registered dealer who is a retailer and who has opted forcomposition of tax u nd er s ub -section (1) of section 42 sh all fi le a six

mon thly return within twen ty-five da ys from th e end of the period of

s ix month s to which the retu rn relates ;

(b)every registered dealer to whom clau se (a) does not app ly an dwhose tax l iabil i ty during the previous year was Rs.12,000 or less

sh all fi le a s ix- mon thly retu rn within twenty-five da ys from the end

of the per iod of six mon ths to which th e retu rn relates.

(c) every registered d ealer to whom clau se (a) or (b) does n ot apply an dwhose tax l iabil i ty during the previous year had exceeded rupees

one lakh s ha ll fi le a mon thly return within twen ty days from th e end

of the m onth for J an ua ry and Februa ry and within twenty five days

in a ny other cas e;

(d)any other registered dealer shall fi le a quarterly return withintwenty-five days from the end of the quarter to which the return

relates.



Explanation- I -- For the purpose of this rule, the expression, "tax

liability" in relation to a registered dealer means - the total of all taxes payable

by him in respect of al l h is places of business in the State under the Central

Sa les Tax Act, 195 6 an d the Mah ar as h tra Valu e Added Tax Act, 200 2, or as

the case m ay be, the Bomba y Sales Tax Act , 1959, after adjus tmen t of the

am oun t of set-off or refu nd claimed by him, if an y un der th e resp ective Act.

For the purposes of this rule, the expression "previous year" includes the year

ending on the 31 s t March 2005 .

Explanation II.For the purposes of this rule, the first six monthly

return shal l be for the period s tar t ing on the appointed day or , as the case

may be, 1 s t April and ending on the 30 th September. The second s ix monthly

return shal l be for the period s tar t ing on the 1 s t October and ending on the

31 s t March.

15 . Spec ial Provis ion For First And Last Return In Certain Cases And For

Dealers Under The Package Scheme Of Incentives. (1) Wher e a dealer h as

become liable to be registered under this Act, the first return to be furnished

by him shall be for the period from the appointed day, 1 s t April of the year, or

as the cas e ma y be, from th e date of event wh ich ma kes him l iable to pay tax

to the end of the quarter containing the date of registration. He shall continue

to fi le qua rterly retu rn s in r esp ect of periods end ing on or before the en d of the

year containing the date of effect of registration. The quarterly return shall be

filed within twenty-five days of the end of the quarter to which the return

relates.

(2) Where the business in which the dealer is engaged is discontinued or

otherwise disposed off or has been transferred or the place of business is

cha nged to a di fferent local area, then the las t m onthly or , as the ca se m ay be,

quarterly or six monthly return shall be for the period beginning with the first

da te of the m onth or , as the cas e ma y be, firs t da te of the qu arter or th e firs t



date of the six month period and ending with the date of the said

discontinuance, disposal, transfer or change of place of the business. The

provisions contained in sub-rule (4) of rule 14 regarding the t ime in which

monthly or quarterly or six monthly returns are to be fi led shall apply to such

re turn .

(3) (a) A dealer to whom a Certificate of Entitlement has been granted for the

purpose of availing of incentives by way of exemption from payment of tax

shall fi le a return for the period beginning with the first day of the month or,

as the case may be, first day of the quarter or the first date of the six month

period to the date immediately preceding the date of effect of the said

certificate. Ther eafter he sh all file qu ar terly retu rn s an d a ccordingly the first

retu rn after obta ining the Certificate of Entit lemen t sh all be fi led from th e da te

of effect of the said Certificate to the end of the quarter. The last return shall

be for the period beginning with the first date of the quarter and ending with

the date on which the said certificate ceases to be valid. The next immediate

return shall be for the period commencing with the date immediately

succeeding the date on which the said certificate ceases to be valid to the end

of quarter. For the balance period of the year, if any, he shall fi le quarterly

returns. The periodicity of the returns for the immediately succeeding year

shal l be decided in accordance with rule 14 and for this purpose the

provisions contained in sub-rule (4) of rule 14 shall apply to such dealer as if

the expr ession tax l iab ili ty of the d ealer in clu ded th e cu m u lative qu an tu m of

benefits availed by the dealer in the year containing the date in which the

certificate of entitlement ceases to be valid.

(b) The provisions con tained in s ub -ru le (a) sh all mutatis mutandis apply to a

dea ler to wh om a certificate of enti t lemen t b y way of defermen t of pa yment of

t ax has b een gran ted .



16. Consol idated Returns. A dealer shal l make an appl icat ion to submit

consolida ted return s to th e Commissioner:

Provided that, he shall not be permitted to fi le a consolidated return in

resp ect of a place of bu siness for which th e dealer ha s obta ined a Certificate of

Entit lement under any of the Package Schemes of Incentives except the Power

Genera tion Promotion Policy, 199 8.

17 .Com plete And Self Consist ent Return. Any retu rn sh all be deemed to

be comp lete an d self consisten t only if, al l the i tems in the retu rn perta ining to

turnover of sales and purchases, claim of set-off, amount of set-off carried

forward a nd a mou nt of set-off claimed a s refun d, ca lcu lation of tax as also the

details where applicable regarding the cumulative quantum of benefits,

am oun t of pa yment d efered, m oneta ry ceilin g, period of incentives a nd refu nd s

are fi l led in their appropriate places and are ari thmetically self consistent and

if the details provided in the return regarding name, address, registration

number, period of return and the Ent i t lement Cert i f icate number, where

a pp lica ble, a re filled in fu lly.

18. Order Of Assessment. An order imposing a penalty or interest or an

order of forfeiture with or without penalty or an order granting interest on

refund in respect of any period may be incorporated in the order of

as sess men t relat ing to tha t period.

19. Supply Of Copy Of Order Of Assessment. (1) A certified copy of an

order of assessment shal l be furnished to the assessee free of charge

alongwith th e notice iss u ed in accorda nce with su b-section (4) of section 32.

(2) A dealer or a person to whom section 43 applies and who requires

add it ional copies of su ch order s ha ll be supp lied with the s am e on his m aking

an application in this behalf.

20. Submission Of Appeals. (1) Every first or second appeal shall -

(a ) be in writing,



(b)specify the na me a nd add ress of the ap pellan t ,(c) sp ecify the da te of the order agains t which i t is m ad e,(d)contain a clear s tatemen t of fact ,(e) sta te p recisely an d in b rief the relief pra yed for, an d(f) be accompanied by the challan for proof of having paid the required

fees.

(g) s tate th e qua ntu m of relief sou ght .(h )be signed and verified by the appellant or by an agent duly

authorised by him in writ ing in that behalf, in the following form,

namely :-

"I . . . . . . . agent appointed by the appellant named in the above

memorandum of appeal do hereby declare that what is s tated

her ein is tru e to the b est of my knowledge an d belief.

-------------------

(Signature)".

(2) The memorandum of appeal shall be accompanied by either the certified

copy of the order supplied to the dealer or duly authenticated copy thereof,

u nless th e omission to produce s u ch order or copy is explained a t th e t ime of

the presentation of the appeal to the satisfaction of the appellate authority.

(3) The memorandum of appeal shall either be presented by the appellant or

his agent to the appel late authori ty or be sent to the said authori ty by

registered post.

21. Application For Stay. (1) An y app ellan t des irin g to obta in sta y in fu ll or

in part to the operat ion of the order , disputed in appeal , may make an



ap plication for gran t of su ch s tay, to th e app ellate a u thority.

(2)Th e ap pellate au thority, on a ny one of the following grou nd s, m ay rejectthe application, namely:-

(a) If the appeal fi led by the appellant is summarily rejected by theapp ellate au thority;

(b) any other ground, which the appel late authori ty may considersufficient:

Provided that, no such application for stay shall be rejected by the appellate

authority unless the appellant is given a reasonable opportunity of being

hea rd a nd the ground s for reject ion s ha ll be recorded by the sa id a u thority.

22. Summary Rejection.-- (1) If the memorandum of appeal omits to state

any of the part iculars required under rule 20 or is not accompanied with the

certified copy of the order supplied to the dealer or a duly authenticated copy

thereof, the appeal may be summarily rejected :

Provided that , no appeal shal l be summari ly rejected under this sub-

rule unless the appel lant is given a reasonable opportuni ty to amend the

memorand um of appeal.

(2) The appeal may also be summari ly rejected on grounds other than those

sp ecified in s u b-ru le (1), which th e app ellate a u thority ma y consider s u fficient

and which shall be reduced to writ ing by the appellate authority :

Provided th at , before an order s u mm ari ly reject ing an appea l und er th is su b-

rule is passed, the appellant shall be given a reasonable opportunity of being

hea rd .

(3) If within thirty days from the date on which any appeal is summarily

rejected under sub-rule (1) or (2), the appellant makes an application to the

appellate authority for sett ing aside the order of summary rejection and

satisfies i t that the notice under the proviso to sub-rule (1) to amend the



mem orand um of appea l or of a hea ring u nd er the p roviso to su b-rule (2) was

not duly served on him, or that he was prevented by sufficient cause from

am ending the memora nd um of app eal or from app earing when th e appeal was

cal led on for hearing, the sa id a uth ority sha ll ma ke an order set t ing a s ide the

summary rejection and restore the appeal to i ts fi le:

Provided tha t if an ord er on th e application for sett ing aside the order of

summary rejection is not made within thirty days of the receipt of the

application, i t shall be deemed that the appeal is restored to the fi le of the

appellate authority -

23 . Hearing. -- (1) (a) If the ap pellate a u th ority does n ot s u mm ar ily reject th e

appeal, i t shall fix a date for hearing. The date so fixed shall not be earlier

than ten days from the date on which intimation thereof is given to the

appellant or to his agent:

Provided that, a date earlier than aforesaid may be fixed for hearing, if

the appellant or his agent agrees thereto in writ ing.

(b) The authority aforesaid may for sufficient reasons adjourn at any stage the

hearing of an appeal to a di fferent t ime on the same day or any other day so

however that the day to which the hearing is adjourned shal l not be earl ier

than ten days from the day on which intimation thereof is given to the

appellant or to his agent:

Provided that, a date earlier than aforesaid may be fixed for hearing an

ap pea l if the a pp ellant or h is a gent a grees thereto in writ ing.

(2) If on the date and at the t ime fixed for hearing or on any other date or at

an y other t ime to which the h earing may be adjou rned, th e ap pellan t does n ot

app ear before the said au thori ty either in person or throu gh an agent , the s aid

authority may dismiss the appeal or may decide i t ex-parte, as i t may think fi t :

Provided that, if within 30 days from the date on which the appeal was



dismissed or decided ex-parte, under this sub-rule, the appel lant makes an

ap plication to the ap pellate a u thority for sett ing aside the order a nd sa tisfies i t

tha t the int imat ion of the da te of hea ring was n ot du ly served on him or th at

he was prevented by suff icient cause from appearing when the appeal was

cal led for hearing the sa id au thority shal l ma ke an order set t ing as ide the

dismissal or ex-parte decis ion upon such terms as i t th inks f i t , and shal l

ap point a da y for proceeding with th e ap peal.

(3) (a) Every app ellate au thority includ ing the Tribu na l sh all ma intainregisters sh owing the particulars regarding th e chr onological order of the

filing of ap pea ls a n d a lso the qu an tu m of relief sou ght.

(b)

For the purposes of these rules, the expression quantum of relief sought

means : - -

(i) the aggregate of the amount of tax or penalty or interest , if any orsum forfei ted on demanded and the amount claimed by the

app ellan t as refu nd able, or

(ii) the difference between the amount of refund claimed by theappel lant and the amount of refund granted in the order against

which th e a ppea l is fi led, or

(iii) the difference of the amount of tax or penalty or interest , if any,or sum forfei ted, demanded and the amount accepted by the

appellant to be payable.

(4) Every appellate a u th ority includ ing the Tribu na l sh all fix dates for hea ring

in su ch a way tha t half of the cases fixed for hearing du ring an y month are

the cases where appeals are f i led against any order passed under sect ion 56

or wher e appea ls are fi led ear lier to all other ap pea ls a nd th e rema in in g ha lf

shall be out of the balance appeals involving the highest quantum of relief

sought .



24. Supply Of Copy Of Order To The Appellant And To The Officer

Concerned. -- A certified copy of an y order pa ss ed in ap pea l sh all be s up plied

free of cost to the p erson or dealer concerned a nd an other copy sha ll be sent

to the officer whose order forms the s u bject of the a ppea l proceedings.

25. Award Of Costs By Tribunal. (1) The costs of all appeals and other

proceedings before the Tribu na l sha ll be in th e discretion of the Tribu na l.

(2) Where the appellant withdraws from the proceedings without the

permission of the Tribunal or fails, without a reasonable excuse, to appear

before the Tribunal on the date and at the t ime fixed by i t under notice served

on h im, h e sha ll be liab le for su ch costs a s the Tribu na l may award.

(3) In i ts final orders, if costs are awarded, the Tribunal shall state who shall

bear the cost an d in wha t proport ion, i f an y.

(4) No costs shall be awarded against a dealer or person unless he is given a

reasonable opportunity of being heard.

(5) Wher e costs a re awa rded, a b ill of costs s ha ll be dra wn u p b y the Registra r

of the Tribu na l an d at ta ched to its jud gment an d order .

26. The Notice For The Purpose Of Sub-Section (11) Of Section 29.

Where an order of forfeiture is made, the Commissioner shall by a notice

pu blish ed in th e Official Gazette n otify th e followin g deta ils for th e informa tion

of the person concerned, namely, -

(a) the name, address and the regis t rat ion number, i f any, held by the

person in whose case the order is pa ssed;

(b) dat e of th e ord er;

(c) the amount forfeited;

(d) the p eriod for which the order is pas sed, an d(e) reas ons for forfeitu re.



27 . Tax Deduction At Source.

(1) (a) Every employer who is required to deduct tax under clause (b) ofsu b-section (1) of section 31 sh all within 10 da ys from the expiry of the

month during which tax is so required to be deducted, remit the ful l

amount of such tax due and deductable to the Government Treasury

irrespective of the actual amount of tax deducted by him, from such

dealer.

(b)The emp loyer required to remit tax, sh all fu rn ish a certificate inrespect of the amount so remitted immediately after the deduction is

ma de, to the dealer in respect of whom su ch dedu ct ion is m ad e.

(c) (i) The employer who ha d d educted a nd remit ted s u ch ta x sh al l send astatement in duplicate to the registering authority who has jurisdiction

over the contractor (and in case of any unregistered contractor, whether

or not res ident in the State of Maharashtra for Mumbai zone send a

s tatement to the regis ter ing authori ty designated for non-res ident

dealers and for such contractor outs ide Mumbai Zone, shal l send a

sta temen t to the resp ective J oint Com miss ioner of Sa les Tax

(Administration) in whose jurisdiction the said contractor is

s i tuated)within 20 da ys after the end of month to which s u ch s tatemen t

relates.

(d )Any emp loyer issu ing a certificate as r equired by para graph (b) sh allmaintain for each year a separate account showing the amount of tax

deducted, certificate of tax deduction issued, and the particulars of

remitances made to the Government Treasury and shal l f i le a return

with the J oint Comm iss ioner of Sales Tax (Adm inistration) in whose

jurisdiction the employer is si tuated within three months of the end of

the year to which th e return relates .



(2) (a) An application for grant of certificate of deduction of tax at source or no

deduction of tax under sub-section (3) of section 31 shall be made by the

dea ler to th e registering a u thority who is h aving jurisdiction over the d ealer.

(b) The application shall be accompanied by copies of the contract, and otherdocuments , on the basis of which the claim is made for deduct ion at source,

or no dedu ct ion, as th e case ma y be.

(c) If the part iculars and documents furnished by the dealer are correct andcomplete in al l respects an d a fter ma king such enqu iry as m ay be deemed

necessary, the registering authority is satisfied that the contract involves

both transfer of property in goods and labour or service, or involves only

labour or service and justifies deduction of tax at source or no deduction

of tax, as the case may be, he shall , after giving the applicant a reasonable

opportu nity of being hear d gran t a certificate within a p eriod of one mon th

from the of receipt of the application and shall forward a copy of such

certificate to the employer for whom the work is executed. If it comes to the

notice of the registering a u thority tha t th e certificate is wrongly gra nt ed or

is not in order, then he ma y on his own motion can cel or modify su ch

certificate, a fter giving th e dea ler a reas ona ble opportu nity of being hea rd.

(3) The t ime per iod for app l ica t ion to the Commiss ioner fo r a llo tment o f

sa les tax (Works Contra ct) dedu ct ion n um ber will be 3 m onths from the d ay

he becomes so l iable to deduct the tax.

28. Time For Payment. (1) Every dealer required to furnish a return under

rule 14 or 15 whether monthly, quarterly or six monthly or for any other

period, sh al l, on or b efore the da te prescribed for s ub mission of such return ,

pa y into Govern men t Trea su ry, the ta x du e from h im for the p eriod covered by

su ch retu rn an d interes t , if an y, payable by him u nder th is Act .

(2) Any sum determined by way of composition of an offence in accordance



with sect ion 78 shal l , wi thin the t ime s tated in the order determining such

composition, be paid in the Government Treasury.

(3) The person liable to pay any amount of fine imposed under sub-section (3)

of section 14 or any other provision of this Act shall pay the same into

Government Treasury before the date specified in the notice issued by the

Commissioner or the Tribunal in that behalf.

29 . Met hod Of Payme nt. (1) Every payment of tax or interest or penalty or

al l of them payable under rule 28 and the amount of balance of tax payable

according to a return or revised retu rn a nd p ena lty an d interes t payable und er

ru le 28 sha ll be accompan ied by a retu rn-cum -chalan.

(2) Every payment of tax or interest or penalty or all of them not referred to in

sub-rule (1) and every payment of amount forfeited, composition money and

fine imposed s ha ll be accompa nied by a cha lan .

(3) The Form accompanying the payments as aforesaid shall be duly fi l led in,

s igned and veri f ied by the payer and the amount paid shal l be s tated both in

words and in figures in the space provided for that purpose in the respective

Form.

(4) The payments shall be made into Government Treasury. The portion of the

concerned Form m ark ed "for the payer" sh al l be retu rned by the Governm ent

Treasury to the dealer duly receipted, and the portion of the Form marked "for

the registering authority" shall be forwarded by the Government Treasury to

the registering a u th ority specified in ru le 14.

(5) Subject to the provisions of section 33 and 34, no payment as aforesaid

sh all be m ad e to an y officer or au thority appointed by or un der s ection 10 .

(6) The instalments granted, if any, under one order shall be for a period not

exceeding one year. The periodicity of payments shall not be more than

monthly. The instalments shal l be granted for an amount inclusive of the



in teres t ch argeable, on the am oun t of tax un der ins talment .

30. Notice For Payment Of Tax Not Paid According To Return. Where a

dealer has fu rn ished a re turn or revised re turn u nder s ec tion 20 , bu t ha s no t

first paid into the Government Treasury the whole of the amount of tax,

interes t an d pena lty du e or the extra amou nt du e according to such return , or

as the case may be, the revised return, as required under sect ion 32, the

Commissioner may by notice served on him require him to pay forthwith the

amount due from him according to the return or , as the case may be, the

revised return , but rema ining u np aid.

31 . Claim and grant of set -off in respec t of purchase s he ld in stoc k in th e

appointed day,--(1) While assessing the amount of tax payable by any

registered dealer in resp ect of an y period sta rt ing on or a fter th e 1 s t Apr il 200 5

but ending on or before the 31 s t March 2006, the Commissioner shal l in

respect of the purchases or , as the case may be, entry of any goods made by

the registered dealer (hereinafter in this rule referred to as the claimant

dealer] at any t ime on or before the 31 st March 2005 and held in stock by

him on 31 s t Mar ch 2005 a t the close of bu sines s, gra nt h im a set-off of an

am oun t equ al to th e aggregate of the following su ms tha t is to sa y,--

a ) in respect of the said purchases covered by the Bombay Sales TaxAct , 1959, a sum calculated in accordance with rule 44D of the

Bombay Sales Tax Act, 1959, as the rule stood immediately before

the appointed day, if the conditions specified in the said Act and

Rule are fulfilled.

b ) in res pect of pu rch as es covered b y any of the ea rlier laws other th anthe Bombay Sales Tax Act, 1959, a sum collected separately from

the claimant dealer by the other regis tered dealer or , as the case

ma y be, person holding l icence, by way of tax on th e pu rcha se m ade

by him from the other regis tered dealer or , as the case may be,



pers on holding l icence, of the sa id goods.

c) any su m pa id by the dealer on h i s purcha ses o r , as the case ma y be ,the entry of goods, under the Maharashtra Tax on Entry of Motor

Vehicles into the Local Areas Act, 1987 or the Maharashtra Tax on

the Entry of Goods into the Local Areas Act, 2002.

(2) No set-off shall be allowed under this rule -

(a ) in respect of any purchase or entry of goods if the claimant dealerha s claimed set-off, dra wback or, as the cas e ma y be, refu nd in

respect of the s aid pu rcha se or entry un der a ny earlier law, an d

(b)un less the goods are resold on or after the 1 s t April 2005 and on orbefore the 31 s t December 2005 or are u sed in the packing of goods

so res old.

(c) in respect of goods t reated as capi tal assets unless the said assetsare purchased on or af ter the 1 s t April 2003 or their entry in the

State has taken place on or af ter the 1 s t April 2003 and are resold

on or before the 3 1 s t December 2005 .

(3) The set-off un der th is ru le sha ll be claimed

(a) in resp ect of capi tal as sets only when th ey are resold an d su chclaim sh al l be m ade in th e return for the period in which th e sa id

capi tal ass ets are resold an d

(b) in respect of other goods in the period start ing on the 1 s t April2005 .

(4) The set-off under this rule shall not be granted unless the claimant dealer

has complied with the requirements of the notification issued under section

84.

32 . Claim and grant of se t-off in res pect of purchase s m ade in the periods

commencing on or after the appointed day. (1) In assess ing the amount

of tax payable in respect of any period start ing on or after the appointed day,



by a registered dealer [ hereinafter in this rule referred to as the claimant

dealer] the Commissioner shall in respect of the purchases of goods made by

the claimant dealer on or after the appointed day, grant him a set-off of the

aggregate of the following su ms , tha t is to sa y,-

(a ) the sum collected separately from the claimant dealer by the otherregis tered dealer by way of sa les tax on the p u rcha ses ma de by th e

claimant dealer from the said registered dealer of goods being

capi tal assets and goods the purchases of which are debi ted to the

profi t and loss account , t rading goods, raw materials , parts ,

components , spares , packing ma terials and fuel .

(b) tax paid in respect of an y entry made a fter the a ppointed da y un derthe Maharashtra Tax on the Entry of Motor Vehicles into Local

Area s Act, 198 7.

(c) the tax paid in respect of any entry made after the appointed dayunder the Maharashtra Tax on the Entry of Goods into Local Areas

Act, 2003

(2) set-off under this rule shall not be granted in regard to any quantum of tax

if set -off u nder ru le 31 ha s been claimed in respect of the sa me qua ntu m of

tax or i f set -off has been claimed in respect of the said quantum under any

ea rlier law.

33. Reduction In Set-Off. (1) The set-off available under any rule shall be

reduced and shall accordingly be disallowed in part or full in the event of any

of the contigencies specified below and to the extent specified.

(2) If the claima nt dealer has u sed an y taxable goods a s fuel, then an am oun t

equal to four percent . of the corresponding purchase price shal l be reduced

from th e am oun t of set-off otherwise availab le in resp ect of the s aid pu rch as e.

(3) (a) If the claiman t dealer man u factu res a ny tax free goods then an am oun tequal to four per cent. of the purchase price of the corresponding taxable



goods pu rcha sed by him (not being goods t reated a s cap ital assets or u sed a s

fu el) sh all be red u ced from the am oun t of set-off other wise a vailab le in resp ect

of the said pu rcha ses .

(b) If the claimant dealer resells any tax free goods and the tax-free goods are

packed in any material , then an amount equal to four percent . of the

purchase price of the corresponding purchases of packing materials , i f any,

shall be reduced from the amount of set-off otherwise available in respect of

the sa id pu rcha ses of pa cking ma terials .

(4) If the claimant dealer dispatches 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 , then an amount equal to four per cent . of the

purchase price of the corresponding taxable goods (not being goods treated as

capital assets or used as fuel)shall be deducted from the amount of set-off

otherwise available in respect of the said purchases.

(5) If the claimant dealer has made a sale by way of transfer of property in

goods (whether as goods or in some other form) involved in the execution of

works contract then, if the claimant dealer has opted for composition of tax

under sub-section (3) of section 42, the corresponding amount of set-off to

which he is otherwise entit led shall be reduced and the set-off to be allowed

sh all accordingly be calculated by mu ltiplying the sa id amou nt of set-off by

the frac t ion 16 / 25 ,

(6) If the business in which the dealer is engaged is discontinued and is not

t ran sferred or otherwise disposed of an d is not cont inu ed by an y other p erson,

then the set -off on purchases not being purchases t reated as capi tal assets ,

corresponding to the goods held in stock at the t ime of discontinuance shall

be d isallowed a nd accordingly be red u ced fully.



(7) The claima nt d ealer sha ll dedu ct the am oun t requ ired to be redu ced u nder

this ru le from the a mou nt of set-off availab le in resp ect of the p eriod in which

the contingencies specified in this rule occur and claim only the balance

amount as set -off and when the amount so required to be deducted exceeds

the said amount of set-off available in respect of that period, he shall pay an

amount equal to the excess at the t ime when he is required to pay the tax in

resp ect of th e sa id period.

34. Non-Admissibility Of Set-Off. No set-off under any rule shall be

ad missible in resp ect of,

(a ) purchases of motor vehicles (not being goods vehicles) which aret reated by the claimant dealer as capi tal assets and parts ,

components an d accessories thereof u nless the claiman t dealer is

engaged in the business of transferring the right to use [whether or

not for a specified period] for any purpose, in respect of the said

vehicles and the expression "motor vehicles" and "goods vehicles"

shal l have the same meanings as respect ively ass igned to them in

the Motor Vehicles Act, 1988;

(b)purchases of motor spiri ts as notified under sub-section (4) ofsect ion 41 u nless su ch motor spir its are resold or sold in the

course of inter-State trade or commerce or in the course of export

out of the terri tory of India or are s ent, n ot by reason of sa le, ou tside

the State to any place within India by the claimant dealer to his own

place of business, or the place of business of an agent or where the

claimant dealer is a commission agent , to the place of business of

his p rincipa l;

(c) purchase of crude oil as described in section 14 of the Central SalesTax Act, 1956, when used by an oil refinery for refining;

(d)an y pu rch as es ma de b y a d ealer falling u n der en tries (i), (ii), (iv), (v),



(vii) and (ix) of the Explanation to clau se (8) of section 2;

(e) any purchase of consumables or of goods t reated as capi tal assetsby the claimant dealer where the dealer is principally engaged in

doing job work or labour work and is not engaged in the business of

ma nu factu ring of goods for sa le by him an d inciden tal to the

bu siness of job work or lab our work an y was te or scrap goods are

obtained and are sold;

(f) any purchase made by any dealer to whom an Ent i t lementCertificate to claim incentives by way of exemption from tax or

deferment of tax ha s been gran ted, being pu rcha ses of raw

ma terials as defined in ru le 58.

(g) any purchase of goods of incorporeal or intangible nature other thanimp ort l icence, exim s crips , sp ecial import l icence, du ty free a dvan ce

licence, export permit or l icence or quota and credit of duty

ent i tlement p as s book and in th e ha nd s of a d ealer who is t ra ding in

software, purchases of software packages.

35. Condition For Grant Of Set-Off Or Refund And Adjustment Of Draw-

Back, Set-Off In Certain Circumstances. (1)No set-off or refund under

these rules shal l be granted to a dealer in respect of any amount of tax

recovered from him on the purchase of any goods or paid by him or in respect

of en try of a n y goods, -

(a) unless such dealer was a regis tered dealer under the Act or a regis tereddealer or , as the case m ay be, a person h olding license u nd er an y earl ier

law at th e t ime of su ch pu rcha se or entry;

(b)un less su ch dealer has - -(i) maintained a true account in chronological order of all the

purchases of goods made by him on or af ter the appointed day,

sh owin g th e followin g deta ils:--



(A)the da te on which th e goods were purch as ed;(B)the name of the sell ing dealer and his registration certificate

number, i f regis tered, from whom the goods are purchased, and

the des cription of the goods;

(C)the n um ber of the tax invoice un der which th ey were pu rcha sed;(D)the p u rcha se price of the goods;(E)the a mou nt of sa les tax, if an y, recovered from him b y the s elling

dealer;

(ii) in the case of goods in respect of the purchase of which tax hasbeen recovered from the claima nt dea ler or is pa yab le by him as

purchase tax under an earl ier law, maintained a t rue account in

chronological order of the goods so purchased and held by him

on the appointed day, which shal l show the part iculars

mentioned at (A) to (E) above, and the amount of tax recovered

under each of the earlier laws separately.

(2)

The claimant dealer shall , if so required, produce before the

Commissioner th e origina l bi ll/ invoice/ cash memora nd u m relat ing to each

purchase in respect of which the claim for set-off has been made in respect of

any purchase made before the appointed day, and a tax invoice in respect of

an y pu rchas e made after the appointed day.

(3) A dealer who by virtue of these rules, has, in any period becomeentit led to a sum by way of set-off or refund, may, subject to the other

provis ions of this rule, adjust such sum against the tax payable according to

the return relat ing to such period. If the sum admissible for such adjustment

is in excess of the tax payable according to the said return, the claimant

dealer may, at his opt ion, adjust such excess or , as the case may be, part of

the excess towards the Central Sales Tax payable by him under the Central



Sales Tax Act, 1956, according to the return under the said Act relating to the

sa id period or , ma y adjus t su ch excess or an y balan ce excess against the tax

pa yable according to the return for any su bsequ ent period fal ling in the s am e

year.

(4) Where a notice under sub-section (4) of section 32 or, as the case maybe, a notice under the corresponding provisions of any earlier law has been

issued for the payment of any sum by a dealer or the dealer has f i led any

return or revised return without full payment of tax and who is enti t led to a

refund under these rules or , as the case may be, under any earl ier law, the

am oun t so due by way of refu nd , sha ll first be app lied towar ds the recovery of

the amount in respect of which such not ice has been issued or towards the

payment of the said tax and the balance amount , i f any, shal l thereafter be

claimed as refu nd.

(5) Where the claimant dealer is unable to identify the goods purchasedwith th e goods resold or with th e goods u sed in th e ma nu factu re of goods or in

the packing of goods, i t shall be presumed for the purpose of reduction or

disallowance of set-off that the goods so purchased have been used or

consumed in the chronological order in which they were acquired whether

before or after app ointed da y.

(6) Set-off of the tax paid under the Maharashtra tax on Entry of MotorVehicles into the Local Areas Act, 1987 and of the tax paid under the

Maharashtra Tax on Entry of Goods into the Local Areas Act, 2002 in respect

of any goods shall be granted to a dealer as if such tax is a tax levied under

this Act or, as the case may be, under any earlier law and all of the provisions

of these rules including those relating to reduction in set-off and non-

ad m issibility of se t-off sh all mu tatis mu tandis apply accordingly.

37. Reimbursement In Respect Of Declared Goods Purchased On Or After



The Appointed Day. Where a dealer is l iable to pay tax under the Act then

in assessing the amount of tax under this Act in respect of any period payable

by such dealer (hereinafter referred to in this rule as "the claimant dealer"),

the Commissioner shal l grant him in respect of declared goods purchased by

him on or af ter the appointed day and resold by him in the course of inter-

State t rade or comm erce and on which resa le, tax un der the Cen tral Sales Tax

Act, 1956 (LXXIV of 1956), has been paid by him, reimbursement of the tax

pa id by him on h is pu rcha ses of the s aid goods.

38 . Reduc tion Of Sale Price For Levy Of Tax. (1) A registered dealer may,

in respect of any sale effected by him on or after the appointed day on which

sales tax is payable by him and where he has not separately col lected any

amount by way of sales tax, deduct from the sale price of the goods a sum

calculated in accorda nce with th e formu la as follows:-

Amou nt of dedu ction = R

R

+100

Wher e R = the ra te of tax ap plicab le to the s ale of the

goods.

(2) A registe red d ealer ma y, in resp ect of a n y resa le of goods m ad e

after the appointed day of goods originally manufactured whether

before or af ter the appointed day by an uni t under the exemption

mod e of an y Packa ge Scheme of In centives, for the pu rpose of levy

of tax deduct from the sale price of the resale of such goods an

am oun t calcu lated in accorda nce with th e following formu lae:-

(a) where the goods are purchased by the claimant dealer

whether before or af ter the appointed day and tax is not

recovered separately from the claimant dealer in his

pu rcha se invoice



Amount of deduction = Amount of purchase price including

the price of goods used in packing if

the p acking is cha rged sepa rately.

(b) where the goods are purchased by the claimant dealer

after the appointed day from a registered dealer who has

sep ara tely recovered ta x from th e claima nt d ealer

Amou nt of dedu ction = P - ( T X 100 / R )

where P is the aggregate of the purchase price of the goods, and of the

goods used for packing of the said goods if the packing is charged

sep ara tely. T is the am oun t of tax recovered sepa rately from th e

claimant dealer in respect of the purchase of the goods and R is the

ra te of tax genera lly applicab le to the sa le of such goods.

(c) A registe red d ealer in re sp ect of th e res a le effected b y him on or a fter

the appointed day of goods originally manufactured by an exemption

uni t and which are held by him in opening s tock on the appointed day

ma y reduce from th e sa le price his p u rcha se price if the s aid goods are

supported by a bi l l or cash memorandum as provided in clause (aa) of

rule 53 of the Bombay Sales Tax Rules, 1959, as the rule stood

immed iat ely before the a ppointed d ay.

(3) Where the sale price is to be reduced in accordance with sub-rule (1)an d a lso su b-rule (2), then the s ale price sha ll firs t be reduced in a ccordan ce

with sub-rule (2) and the reduced sale price shal l be further reduced in

accorda nce with s u b-ru le (1).

(4) Where a registered dealer has sold any goods after the appointed day byway of delivery of goods on hire-purchase or any system of payment by

ins talments , th en h e ma y dedu ct from the s ale price, the componen t of

interest , conta ined in the s ale price, if the a greement for sa le is r edu ced



to writ ing and the com pon ent of interest is sp ecified th erein.

39. Determination of sale price and of purchase price in respect of sale

by transfer of property in goods [whether as good or in some other form]

involved in the exe cution o f a works cont ract. (1) The value of the goods

at th e t ime of the tr an sfer of property in the goods [wheth er as goods or in

some other form] involved in the execution of a works contract may be

determined by effecting the following deductions from the value of the entire

contract , in s o for as th e am oun ts relat ing to the dedu ct ion pertain to the sa id

works contract:--

(a ) labour and service charges for the execution of the works where thelabour and service done in relat ion to the goods is subsequent to

the s aid tra ns fer of property;

(b)amounts paid by way of price for sub-contract , if any, to sub-contractors ;

(c) cha rges for plan ning, designing an d a rch itects fees;

(d)charges for obtaining on hire or otherwise, machinery and tools forthe execution of the works contrct;

(e) cost of consumables such as water, electricity, fuel used in theexecution of works contra ct, the property in which is not

transferred in the course of execution of the works contract;

(f) cost of establishment of the contractor to the extent to which i t isrelatab le to su pply of th e said lab our an d services;

(g) other similar expenses relatable to the said supply of labour andservices , where the labour and services are subsequent to the said

tra ns fer of property;



(h ) profit earned by the contractor to the extent i t is relatable to thesupply of said labour and services;

Provided that where the contractor has not maintained accounts which

ena ble a proper evalu ation of the differen t ded uctions as a bove or where the

Commissioner f inds that the accounts maintained by the contractor are not

sufficiently clear or intell igible, the contractor or, as the case may be, the

Commissioner may in l ieu of the deductions as above provide a lumpsum

deduction as provided in the Table below and determine accordingly the sale

price of the goods a t the t ime of the s aid tra ns fer of property.

TABLE

Sr.No

.

Type of Works contract *Amount to be

dedu cted from the

contract p rice

(express ed a s a

percen tage of the

contract price)

1 2 3

* The percentage is to be applied after first deducting from the total contract

price, the amounts paid by way of price for the ent i re sub-contract to sub-

contra ctors, if an y.

(2) The value of goods so arrived at under sub-rule(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 execu tion of a works contra ct.

40. Determination Of Taxable Turnover Of Sales Of Residential Hotels

Charging A Composite Sum For Lodging And Boarding. In assess ing the

turnover of sales of goods, specified in paragraph (vi) of sub-clause (b) of the



Explanation to clause (24) of section 2, of the residential hotels, providing

lodging and boa rding an d char ging a comp osite su m, which is inclu sive of

breakfast or lunch or dinner or , as the case may be, a combinat ion of al l or

any of the above, the Commissioner shall determine the taxable turnover of

sa les, in r espect of an y period in th e following m an ner , n am ely:-

(a ) Wh er e t h e com p os it e c h a rge s in clu d e

the ch arges for breakfast ,

5 per cent . of the

Composite charges

(b ) Wh er e t h e com p os it e c h a rge s in clu d e

the ch arges for lu nch ,

10 per cent. of the

Composite charges

(c) Wh er e t h e com p os it e c h a rge s in clu d e

the ch arges for dinn er,

15 per cent. of the

Composite charges

(d ) Wh er e t h e com p os it e c h a rge s in clu d e

the cha rges for breakfas t and lun ch,

15 per cent. of the

Composite charges

(e) Wh er e t h e com p os it e c h a rge s in clu d e

the cha rges for breakfas t an d dinner,

20 per cent. of the

Composite charges

(f) Wh er e t h e com p os it e c h a rge s in clu d e

the cha rges for lu nch a nd dinner,

25 per cent. of the

Composite charges

(g) Wh er e t h e com p os it e c h a rge s in clu d e

the charges for breakfast , lunch and

dinner ,

30 per cent. of the

Composite cha rges;

Provided that, if the claimant dealer produces evidence to the

satisfaction of the Commissioner that the component of the taxable turnover

of sales in the composite sum is less than the percentage given above, the

Commissioner shal l reduce the above percentage to the extent of actual sum

of turnover of sales, so proved.

41. Order Sanctioning Refund. (1) When the Comm issioner is s atisfied th at

a refund is due, he shal l record an order showing the amount of refund due



an d sh al l comm un icate the sam e to the dealer .

(2) When an order for refund has been made under any rule, the

Commissioner shal l , i f the appl icant desi res payment in cash, i ssue to him a

refu nd pa yment order .

42. Refund Adjustment Order: If the appl icant desi res payment by

adjustment against any amount payable by him, the Commissioner shal l

make out a refund adjustment order authorizing the appl icant to adjust the

sum to be refunded against any amount payable by him in respect of the

period for which a return is to be f

Documents

Maharashtra VAT Rules- By MITZZ-XP