Dayal R Kundani

The Maharashtra Budget for F.Y. 2016-17 was pronounced on 19th March, 2016. In the Speech the Finance Minister has made the following proposals while presenting the Budget.

Contents of Key proposals

Value Added Tax – RATE CHANGE

  • Increase of rate of tax from existing 5% to 5.5%
  • Reduction in Tax on LED Tubes from existing 12.5% to 5.5%. This is now at par with LED bulbs which also attract 5.5%
  • Reduction in tax on stationary goods such as Pencil Box, all types of gum, glues and sticks, stapler pin, tape dispenser, duster and all types of files from existing 12.5% to 5.5%
Notifications yet to be issued in regard to above change of rates

The following are the technical changes and some other changes in the VAT Act which have been proposed and notification / circulars / clarifications are awaited:

EVASION OF TAX

  • To curb instances of evasion of tax by showing sale price well below market price a concept of “fair market price” is being introduced
  • It is proposed to give powers to assess a dealer on the basis of fair market price if goods are sold below market price with intention to evade tax..

REGISTRATION

  • Tax payers need not visit the sales tax office for New Registration
  • Dealer shall upload all documents relating to online registration and comply with discrepancy if any, if no discrepancy then registration shall be granted from the date of application.
  • Provision is also made to cancel the registration if false documents are furnished

REVISION OF VAT/CST RETURN’s

  • The revised returns can be filed up to the due date for filing audit report under the VAT Act i.e. for the FY 16-17 returns can be revised up to 31/12/2018
  • Dealer also permitted to file revised returns multiple times.
Earlier revision of the original return could be made only twice under each of the clauses of revision.

DEEMED ASSESSMENT

  • Dealers who have filed timely returns and not selected for assessment will be issued returns acceptance order [**subject to conditions]
  • Dealer who have filed timely returns will deemed to be accepted as true and correct if no assessment order is issued within a period of 4 years

TECHNICAL CHANGES

  • Section 56 relating to Determination of Disputed Questions [DDQ] is being deleted and a provision for Advance Ruling on stipulated questions is being made to make application before or after entering a transaction.
  • All pending application relating to DDQ under the said section can be transferred to the Advance Ruling Authority.

Relevant Notification/ Circular/ Clarification on above changes and effective date are awaited, Kindly refer Budget Speech for more details on the changes.

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Category : GST (2085)
Type : Articles (10811)
Tags : Budget 2016 (434) CST (77) Dayal R Kundani (11) MVAT (499)
  • Sudarshan Shetty

    The filing of revised returns multiple times until the due date of filing of VAT audit report i.e. 31/12/2017 in case of F Y 2016-17 is only applicable for audit dealers or for every dealer??
    Also the due date in your article is wronly mentioned as 31/12/2018 instead of 31/12/2017

  • Pallavi Ipte

    CST Rate is still same or change? pls update

  • gajrannada

    Dear Sir,

    There is a changes in Appeal fees???

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