TRADE CIRCULAR Date: 15.03.2010
Trade Cir.10T of 2010
Sub: Amendment to the Maharashtra Value Added Tax Rules, 2005 & Central Sales Tax (Bombay) Rules, 1957.
1. Government Resolution No.Misc-1008/CR-8/Treasury-5 dated 31st October 2008.
2. Government Resolution No.STA-2009/CR-88/Taxation-2 dated 2nd January 2010.
3. Government Notification, Finance Department No. VAT-1510/CR-6/Taxation-l dated 5th February 2010.
4. Government Notification, Finance Department No. CST-1510/CR-25/Taxation-l dated 5th February 2010.
Gentlemen/ Sir/ Madam,
The Maharashtra Value Added Tax Rules, 2005 and Central Sales (Bombay) Rules, 1957 have been amended by the Government Notifications cited at reference. The required notification is published in the Official Gazette dated 5th February 2010.
The salient features of the amendment to MVAT Rules and CST (Bombay) Rules are briefly explained below:
1. MVAT Rules:- Addition of New Rule 45A: This rule is for the payment of tax and refund due to the dealer:-
A. Electronic Payment:-
(a) A new sub-rule 45A is inserted. This new rule provides for electronic payment of tax, interest, penalty, if any, or any amount payable under MVAT Act, 2002.
(b) The State Government, may from time to time issue notification and notify class or classes of the dealer who shall be required to make the said payment electronically. Further, State Government may specify the period from which electronic payment is to be made mandatory.
(c) At present, this scheme is optional for payment under VAT as well as CST. The dealer, who desires to make payment electronically, may avail this facility. The procedural details afe explained in Trade Circular 8T 2010 dated 6th February 2010. The dealer who desires to make electronic payment under VAT shall use Chalan MTR-6. After successful e-payment transaction a Chalan Identification Number-CIN is generated. This CIN is to be filled in the appropriate field while filling the information in relevant Return.
(d) For the manual payment under VAT, the dealer may continue to use Chalan in Form-210.
(e) However, for payments under the BST Act the dealer is required to make manual payment in Form-210 only. The facility for electronic payment is not available for the payment to be made under the BST Act. Hence, the earlier system will continue without any change.
B. Electronic Remittance of Refund:-
(a) This amendment provides that the State Government may from time to time issue notification and notify the class or classes of dealers eligible for remittance of refund due under the Act through Electronic System.
(b) This facility will not be applicable for the refund due under the old Acts.
(c) This scheme will be operational once the State Government issues notification. Detailed instructions, modalities and procedural aspects will be clarified in due course.
2. CST (Bombay) Rules: -In order to harmonies procedure for electronic payment, certain amendments are carried out to CST (Bombay) Rules, 1957.
(a) Amendment to sub-rule (1) of Rule 5:-Deletion of Chalan part.
(i) Sub-rule (1) clause (ii) provides return Form-III(E). This is a return-cum-Chalan used for filing returns under the CST Act. With effect from 1st February 2008, Sales Tax Department has implemented the Scheme of filing returns electronically. As such, Chalan part of this return becomes redundant.
(ii) Like VAT, there was no separate Chalan for payment under CST Act. Due to non availability of Chalan the payment is being made in the Form-Ill (E) i.e. Return-Cum-Chalan. Now a Chalan MTR-6 is provided for the payment under CST Act, hence Chalan part of the Return-Cum-Chalan is deleted. A technical amendment is made so as to replace the words “Return-cum-Chalan” by word “Return”.
(b) Addition of New Chalan Form-MTR-6:-
(iii) As explained in aforesaid para Chalan portion of Form-III(E) is now deleted. A provision is being made and a separate Chalan MTR-6 is provided for payment of tax under CST Act.
(iv) Therefore, for every dealer, who makes either manual payment or electronic payment, it is mandatory to use Chalan MTR-6. In view of this, it is requested that the old Form-III(E) having Chalan part should not be used for the manual payment.
(v) The Form-MTR-6 is being made available on Department’s Web-site. Path is >Downloads>Forms>Acts>CST Act>Chalan (Sr. No. 31). This Chalan MTR-6 is in Triplicate. PART-I is for Treasury, PART-II is for Sales Tax Department and PART-III is for Tax Payer.
(vi) In order to make Manual payment the dealer is required to download this Chalan and take the print out, fill all the necessary fields. The instructions regarding Form-ID, Location etc. are available on the Web-site. The Chalan MTR-6 will also be shortly made available at the Stationery Stores of the Department situated at Ground Floor. Further for the convenience of the trade the Department also proposes to provide chalan MTR-6 at counters of various nationalized banks as well as its own offices.
(vii) The dealer who desires to make payment electronically may do so by using Chalan MTR-6. The payment under CST Act whether before or after 1st April 2005 can be made electronically i.e. dealer can make any payment under CST Act for any ‘period.
2. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
3. You are requested to bring contents of this circular to the notice of the members of your association.
Commissioner of Sales Tax,
Maharashtra State, Mumbai.