Filing of returns for financial year 2010-2011 -under Maharashtra Value Added Tax act, 2002 and Central Sales Tax Act, 1956

The Maharashtra Sales Tax Department (MSTD) has issued a trade circular no. 19T of 2010 dated 23 June 2010 clarifying certain aspects regarding filing of returns for the financial year 2010-2011 as per the periodicity of returns displayed on MSTD’s web site.

Clarifications made in the Circular

–         The returns to be filed under the Maharashtra Value Added Tax Act, 2002 (“MVAT Act”) and the Central Sales Tax Act, 1956 (“CST Act”) by all the registered dealers as per applicable periodicity, shall be based on the tax liability or refund entitlement for the previous year.

–      For the ease and convenience of the dealers, periodicity of filing of the MVAT and CST Returns for the financial year 2010-2011 has been generated automatically and displayed by MSTD on its web site.

–       While determining the said periodicity for filing of returns, returns filed for the period March 2009 to February 2010 have been considered. In case any of these returns have not been filed, for that period, then the tax liability or refund entitlement is worked out by applying the average.

–       The returns which are not in conformity with the periodicity displayed on MSTD web site will be considered as invalid returns. Such returns will be liable to non-appealable penalty under section 29 of MVAT Act.

–       Dealers aggrieved by the periodicity determined and published by MSTD, shall contact the
following persons on or before 9 July 2010.

— Joint Commissioner of Sales Tax (Returns), Mumbai — if dealer is registered in Mumbai.

— Joint Commissioner of Sales Tax (VAT Admin), Mumbai — if dealer is registered other than in Mumbai.

—   Necessary changes will be made in the system if the periodicity displayed by MSTD is found incorrect. As application for rectification will not be accepted after 9 July 2010, periodicity displayed by MSTD shall be considered final for filing of MVAT and CST returns by all the registered dealers and any default will attract the penalty under section 29 of the MVAT Act.

—    MSTD also intends to modify e-returns portal whereby only the returns as per the periodicity displayed on MSTD web site would get uploaded.