PART 1: AMENDMENTS IN PROFESSION TAX

  • New Rate schedule w.e.f. 01/07/2014 for employers paying salary
Monthly Salary Rate
Rs. 0 – 7,500 NIL
Rs. 7,501-10,000 Rs.175 p.m.
Above 10,000 Rs.200 p.m.

(Rs.300 for Feb)

  • Section 27(A)(e) substituted:

Any person with Intellectual and Development Disabilities (mental retardation) specified in the rules, which is certified by a psychiatrist working in Government Hospital and which has effect of reducing considerably such individual’s capacity for normal work or occupation and parents or guardian of such person.

PART 2: AMENDMENTS IN LUXURY TAX

  • New Rate schedule w.e.f. 01/07/2014
Charge for Luxury Tax Rate
0 – 1,000 NIL
1,001-1,500 4%
Above 1,500 10%

PART 3: AMENDMENTS IN SCHEDULE ENTRIES UNDER MVAT ACT

1. Schedule A: (w.e.f. 01/04/14)

Period of exemption extended upto 31/03/15 for

Entry 9(a): Paddy, Rice, Wheat, Pulses, Flours etc.

Entry 51:Papad, Gur, Chilies, turmeric Solapuri Chaddar, towels etc.

Entry 59: Raisins and Currents

2. Schedule A: (w.e.f. 01/08/14)

New Entry 2A: Aircraft Spare parts as may be notified

Entry 39 is substituted. New entry 39(a): Poha, Lahya & Chirmura

(b): Roasted gram & dalwa

New Entry 26A: Copyrights, for distribution and exhibition of cinematographic films in theatres and cinema halls, sold during the period commencing on the 1st April 2005 and ending on the 30th April 2011

3. Schedule B: (w.e.f. 01/04/14)

Entry 1:Articles made of precious metals of fineness not less not less than fifty percent, whether or not containing precious-stones , semi-precious-stones, diamands or pearls whether real or cultured, and to which entry 105 in Schd. C does not apply but excluding industrial goods and industrial tools to which entry 53A of Schedule “C” applies: 1%

Entry 2: Precious metal that is to say Gold, Silver, Platinum, Osmiun, Palladium, Rhodium, Ruthenium & alloys of any of them : 1%

4. Schedule C: (w.e.f.01/04/14)

Period of exemption extended upto 31/03/15 for

Entry 108: Tea in leaf or powder form

5. Schedule C: (w.e.f. 01/08/14)

Entry 25 is substituted

New entry 25(a): Cotton, that is to say ,all kinds of cotton (indigenous or imported) in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise:- 2%

25 (b): Cotton Waste:-5%

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Entry 83 is substituted

New entry 83(a): Roasted pulses, other than roasted gram and dalwa specified in sub-entry (b) of entry 39 of Schedule A, except when served for consumption (b): Fried pulses including fried gram, except when served for consumption

New Entry 107(2A): (w.e.f. 01/08/14)

Capital goods and parts and components thereof, as may be notified by State Government from time to time in the Offical Gazette, when sold to the Departments of state or, as the case may be, the Central Government

New Entry 55A & 55B:

55A:Tool, alloy and special steels of any of the categories, specified in clause(x) to clause(xv) of entry 55 of this Schedule ,sold during the period commencing on the 1 st April 2005 and ending on the 30 th April 2011 – 4%

55B: Tool, alloy and special steels of any of the categories, specified in clause(x) to clause(xv) of entry 55 of this Schedule,sold on or after the 1st may 2011 – 5%

PART 4: AMENDMENTS IN MVAT ACT

1. Change in relation to Late Filing Fee:

Dealers, who have not filed any of the returns till 01/04/14 for period upto Feb 14, can now upload their returns after paying tax and interest on or before 30/09/14. In these cases late filing fee will be only Rs.1000/- per return.

Where a dealer fails to file a return within due date, then he shall pay before filing the return late filing fee of Rs.2000/- if return is filed within 30 days of due date and in any other case Rs.5000/-

2. Changed limit of Turnover for Registration

The limit of turnover of Sale/Purch for registration (for dealers other than an importer) is raised from 5 lakh to 10 lakh. That means now for getting RC he has to do a turnover of Rs.10 lakh & make sale or purchase of taxable goods of not less than Rs.10,000/-

Dealers (other than importer) having turnover which is less than Rs.10 lakh in 2013-14 can apply for cancellation of RC before 30/09/14 and there RC will be cancelled w.e.f. 01/10/14

3. Section 23(9) Deleted…..

Now application in Form 305 cannot be made by a dealer for taking up the case for assessment. Now filing of Form 501 in cases of where refund has been claimed has become almost a must.

4. Proviso added to Section 23(10):

From period commencing from 01/04/11, if a dealer is required to file more than one return in different forms within a same year, then such dealer may be assessed separately for each form of return for the said period.

5. Changes in Sec.23(11) & (12):

After filing Form 316 for cancellation of order passed u/s. 23 (2), (3) or (4) the officer has to pass cancellation order in Form 317 within 3 months from the end of the month in which such application is made. Else it will be deemed to be cancelled automatically.

6. Proviso inserted in Sec.26(6) (Appeals):

In case of an appeal filed after 01/07/14 against an order in which OMS sales are disallowed for non production of Declaration forms, then the stay shall not be granted unless appellant makes 100% payment of TAX amount.

7. Changes in Section 29 (Penalty):

29(3): While passing any order, if officer notices that the dealer has furnished inaccurate particulars or has misclassified sales or has claimed excess setoff or concealed information, then he may levy penalty upto 100% of tax found due but not less than 25% of tax found due.

29(7A): In cases where late filing fee is paid then penalty u/s. 29(8) of Rs.5000 should not be recovered.

29(11A): Penalty u/s. 29 can be levied upto any time till the time limit for passing of any order under this Act.

29(12) Deleted: Now all STO’s can impose penalty u/s. 29 without any limitation on amount of penalty.

8. Proviso added to Section 30(4):

Interest of 25% u/s.30(4) shall not be payable in following two cases:

1. If additional tax liability is on account of non production of declaration forms.

2. If additional tax liability is less than 10% of tax paid earlier.

9. Changes in Section 61: (VAT Audit)

    • Branch transfer outside the state shall be included in limit of turnover of sales.
    • Limit of Turnover of Sales or Purchases increased from Rs.60 lakh to Rs. 1cr.
    • Liquor dealers out of compulsory audit.
    • Proviso relating to filing of Audit report within one month for circumstances beyond the control of the dealer stands deleted.

10. Other Miscellaneous Amendments:

— Package Scheme of Incentives to include Package Scheme of Incentives 2013.

— Intimation u/s. 63(7) in Form 604 is a must now.

— Post of Senior Deputy Commissioner is deleted.

— Collection of Tax provision u/s.31A to include quarrying lease or permit in respect of minor minerals.

(Prepared by: CA. Deepak P. Agrawal, Akola. The author can be reached at ca_dpa@yahoo.co.in)

Disclaimer: Every effort has been made to avoid errors or omissions. In spite of this, errors may creep in.. The authors will not be responsible for any damage or loss of action to any one, of any kind, in any manner. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the material on web with original Government publication or notifications.

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0 responses to “Recent Amendments In Maharashtra VAT, PT & Luxury Tax”

  1. chandresh says:

    rcjainca.com/wp-content/uploads/2015/03/Budget_2015-16.pdf
    new penalty for late filing of mvat return 2015-16
    is Rs 1000
    not Rs 2000

  2. JANAK says:

    I HAVE RECENTLY GOT TIN NUMBER UNDER MAHARASTRA VAT DEPARTMENT. I HAVE FILED 1ST QUATER RETURN ON TIME. BUT IN 2ND QUATER I FAIL TO FILE MY E-RETURN. SHALL I WILL BE LIABLE TO PAY PENALTY ? AND WHAT IS THE PENALTY TABLE FOR LATE E-RETURN FOR F.Y. 2015-16.

    PLEASE LET ME KNOW SIR.
    THNX

  3. Aslam Ramjan Naikwadi says:

    Please inform me what is Vat Tax rate applicable on Food, Soft beverage, Alcoholic beverage served in 3star hotels in Maharashtra -Mumbai

  4. PIYUSH JAIN says:

    For FY 14-15, as employer liability PT is rs 20000/- till date we r not paid this amt.
    pls guide me abt last date of return and penalty of late payment of tax. as app to maharashtra,

  5. Abhishek says:

    One of the Private Ltd Comapny is Registered in Maharashtra but employee are from gujrat. Under which state law Company is Liable to deduct PT from Employees Salary.

  6. Aakeeb says:

    Dear Sir,
    The rates for accommodation in hotels is Rs.1010/- net. Then it is liable to pay Luxury Tax @4% or it is exempt.

    Waiting for your reply.

    Thanking You.

  7. shivpal shirole says:

    Sir

    Please tell me late vat return penalty and interest

  8. CA Deepak Agrawal says:

    Dear Shankarji,
    Previously the slab was 0-5000 : NIL, 5001-10000 : Rs.175 p.m. and above 10000 was same.
    Regards

  9. shankar says:

    Hi Deepak,

    Please let us know what was the profession tax rates before the amendment.
    Thanks

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