Following Rules have been amended vide Notification No. VAT. 1516/C.R. 53/Taxation- 1. dated 1st April, 2016 which is in force from 01.04.2016:
Rule 52B (Set-off in respect of certain goods)
If the claimant dealer has purchased mobile phone or cellular handset i.e. telephones for cellular network or for other wireless network then he shall be entitled to claim set-off only to the extent of aggregate of the taxes paid or payable under CST Act, 1956 on the inter-state resale of the corresponding goods and the taxes paid on the purchases of said goods if they are resold locally. Earlier the above provision was only for goods covered under entries 13 and 14 of schedule ‘D’.
Rule 53 (Reduction in set-off)
Sub-rule (11) has been inserted providing that the claimant dealer who is engaged in the business of transferring the right to use of passenger motor vehicles for any purpose can claim set-off of tax paid on motor vehicles purchased only to the extent of tax payable on such transfer of right to use. Further, the set off shall be claimed in the period in which such right to use has been transferred.
Rule 54 (Non-admissibility of set-off)
As per the old law no set-off shall be admissible for purchases of passenger motor vehicles which are treated as capital assets and parts, components and accessories thereof. Now it has been clarified that the above provision shall not apply to the claimant dealer who is engaged in the business of transferring the right to use in the said vehicles for any purpose.
FINANCE DEPARTMENT
Madam Cama Marg, Hutatma Rajguru Chowk,
Mantralaya, Mumbai 400 032, dated the 1st April 2016.
NOTIFICATION
MAHARASHTRA VALUE ADDED TAX ACT, 2002.
No. VAT/1516/CR 53/Taxation-1.—Whereas, the Government of Maharashtra is satisfied that circumstances exist which render it necessary to take immediate action further to amend the Maharashtra Value Added Tax Rules, 2005 and to dispense with the condition of previous publication thereof under the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005);
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (2) read with the proviso to sub-section (4) of section 83 of the said Act, and of all other powers enabling it in this behalf, the Government of Maharashtra hereby, makes the following rules further to amend the Maharashtra Value Added Tax Rules, 2005, namely : —
1. (1) These rules may be called the Maharashtra Value Added Tax (Amendment) Rules, 2016.
(2) They shall come into force on the 1st April 2016.
2. In rule 52B of the Maharashtra Value Added Tax Rules, 2005 (hereinafter referred to as “the principal Rules”),—
(1) in the marginal note, the words and letter , “covered under Schedule D of the Act,” shall be deleted;
(2) in sub-rule (1), for the portion beginning with the words , ” If the claimant dealer ” and ending with the words, ” to the extent of aggregate of,-“, the following shall be substituted namely :—
“If the claimant dealer has purchased,—
(i) goods covered under the entries 13 and 14 of the Schedule ‘ D ‘ appended to the Act, or
(ii) mobile phone or cellular handset i.e. telephones for cellular network or for other wireless network,
then the said dealer shall be entitled to claim set-off in respect of the said goods only to the extent of aggregate of,-“.
3. In rule 53 of the principal Rules, after sub-rule (10), the following shall be added, namely :—
“(11) (a) If the claimant dealer is engaged in the business of transferring the right to use (whether or not for a specified period) for any purpose, of passenger motor vehicles, then he shall be entitled to claim set-off of tax paid on the purchase of such motor vehicles only to the extent of tax payable on such transfer of right to use ;
(b) the set off as determined under clause (a) in respect of the such vehicles shall be claimed in the period in which such right to use has been transferred by the claimant dealer.”.
4. In rule 54 of the principal Rules,—
(1) in clause (a), after the words “and accessories thereof “the words and bracket “unless the claimant dealer is engaged in the business of transferring the right to use (whether or not for a specified period ) for any purpose in respect of the said vehicles” shall be inserted ;
(2) in clause (b), for the word ” purchases “, the words and figures “entry, as defined under the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 or, as the case may be, purchases ” shall be substituted.
By order and in the name of the Governor of Maharashtra,
R. D. BHAGAT,
Deputy Secretary to Government.
