The Schedules A,B,C,D appended to Maharashtra Value Added Tax Act, 2002 are amended with effect from 01-04-2013. Further, certain notifications are also amended. These amendments are briefly discussed below
Amendments to Schedule A
1. Braille Watches w-e-f 01.04.2013 are now covered by Schedule Entry A-2 by way of notification.
2. Commodity Rice Bran covered under schedule Entry C-49 is now deleted and now it will be covered under ‘Husk and Bran of Cereals and Pulses’ and thus will be tax free under Schedule Entry A-4 (c).
3 Entry 9A covers Paddy, rice, wheat and pulses , flours of aforesaid goods which also includes atta, Maida, rava and suji and mixed flours of cereals and pulses. The schedule entry on this goods is extended to 31.03.2014 which was up to 31 .03.2013.
4. Hand Pumps’ (used for pumping water) which were earlier covered by Entry C-42 and taxable at 5 % are now covered by schedule entry A-27A thus Tax Free. However due to deletion of Entry C-42 , the Parts and fittings will now attract tax at Respective Rates (i.e. 12.5 % or 5%) depending upon the fact of respective schedule entry.
5. Entry A-36 covering Judicial Stamp Papers, Court Fee Stamp, postal item like envelopes, post cards etc. sold by Government Treasuries. This entry now will also include Vendors authorized by Government for sale of these goods. Further this entry will now also include Postal Stamp, Postal Envelope, postal stationery, and Philatelic material such as Pigeongram, Rocketgram and First day cover.
6. Entry 45 A of Schedule A covering unmanufactured Tobacco (other than unmanufactured tobacco when sold in packaging under the brand name) is deleted , and now will be covered by Schedule entry E-1 thus taxable at 12.5 %
7. The goods Covering under Schedule Entry A-51 that is Papad, Gur, Chilies ,Turmeric and Tamarind whole or powdered , Solapuri Chaddars , Towels and Wet dates etc. will continue to be under this head till 31.03.2014.
8 Entry A-59 covering Raisins and Currents is extended till 31.03.2014.
9. New Entry A-62 is added w-e-f 01.04.2013 covering Water meters sold to local bodies. This will not cover water meter sold to other than Local bodies for which rate of tax will be 12.5%
Amendments to Schedule B
1. Commodities under Schedule entry B-1 , which are used as Industrial goods and Industrial tools will now be covered by Schedule Entry C-53A thus Taxable at 5%.
2 Rate of Tax under Schedule B is enhanced from 1 % to 1.1 % for the period 01 .04.2013 to 31 .03.2014.
3. New separate entry B-3A is made for Diamonds which was earlier covered in B-3.
Amendments to Schedule C
1 Paver blocks are now excluded from Schedule Entry C-3 which covers all types of Bricks, thus now it will be taxable at 12.5%.
2 Schedule Entry C-12 covers Beedi leaves, now biris covered under A-45A will be taxable at 12.5 % under Schedule E-1.
3. Schedule Entry C-29 which deals with drugs and medicines , is amended to exclude products capable of being used as cosmetics and Shampoos, thus which will be taxable at 12.5 %.
4. New entry C-31A is inserted to include Excavators covered under item No.8429 52 00 of Central Excise Tariff Act, 1985 and which are not liable for registration under Motor Vehicle Act, 1988.
5. Entry C-42 which deals with Hand Pump, Part and Fittings is deleted. Now 5 hand Pump are Covered by A-27A , Part and Fittings are covered by respective schedule Entry and taxable at 5% or 12.5 %.
6. Entry C-49 covering Rice Bran is deleted , and now Rice Bran is covered by A-49(c ) , thus Tax Free.
7. New Entry C-53 A is added to cover Industrial goods and Industrial Tools made up of Precious metals or alloys, taxable at 5%.
8. Automated Implantable Cardiac Defibrillators (AICD) are now covered by notification under Entry C-107 (8) taxable at 5% .
9. Entry 107 ,clause (g) of sub-Entry (11) which deals with the Powder , tablets, cubes, crystals and other solids or liquids from which non-alcoholic beverages and soups are prepared is now deleted . These items along with coffee powder will now be taxable at 12.5 %
10 Entry C-108 covering Tea in leaf or Powder Form , is extended till 31.03.2014.
Amendments to Schedule D
1. New Entry D-14 is carved out to cover Cigar and Cigarettes which will be taxable at 25 %.
2. Schedule Entry D-12 will include tobacco, manufactured tobacco and products thereof taxable at 20 % but will exclude Bidi, Unmanufactured tobacco whether sold under brand name or not and cigar and Cigarettes.
1. Second Hand Tractors will also become eligible for composition with regards to second hand motor vehicle.
2. Industrial Fabrics and Varieties of Textile and Textile articles are now covered by C-101 and taxable at 5%.
Author- CA Pawan Jajoo (Amravati)
Note :- Utmost care has been taken in compiling this article. However author will not be responsible for any mistakes. Bare MVAT Act is to be read with this article.