On 18th June 2009 the Government of Maharashtra has passed the Maharashtra Value Added Tax (2nd Amendment) Rules 2009 These amendments are brought into effect from 1st July 2009 unless otherwise specified. Following are the amendments which are made in the MVAT Rules: – 

1) Amendment of Rule 17:

ü      Rule 17 is amended to wherein the words ‘Return-cum-challan’ is deleted and replaced by ‘Return.’ In effect, now all payments, if any to be made will have to be made in challan in form 210 and only returns will be required to be filed in form 231 to 235 depending upon the conditions prescribed.

ü      Another amendment in this rule is that where in the dealer effecting sales of motor spirits, he is required to file return in form 235. Notified Oil companies will also continue to file return in Form 235. Thus even there is negligible sale of petrol, diesel etc, the dealer will have to file return in form 235.

  • The concept of using a digital signature while filing the returns now stands deleted with effect from 01st January 2009.
  • Sub rule (6) inserted with effect from 01st January 2009. Accordingly, a dealer who has registered himself for e-services by either using PAN as his password or by using self generated password, the statements contained in the electronic return shall be presumed to be return.

2)      Amendment in Rule 40:

Rule 40 which deal with tax deduction at source has been amended. Now a dealer will be required to discharge TDS payment in Challan in the form no. 210 instead of form 405. Similarly he is required to submit the return in the form 405 to “Joint commissioner of sales tax (Return)” in Mumbai and “Joint commissioner of sales tax (VAT administer)” in the rest of the state with in three months from the end of the year to which the return relates. The format of form 405 is also changed.

In short all TDS payment made after 01.07.2009 will be paid in challan no. 210 and the returns will be filed separately in amended form 405.

3) Amendment in Rule 53:

ü      Sub rule 2(b) has been amended and accordingly a dealer trading in tax free goods will not been required to reduce set off on packing material used to the extend that such tax free goods are exported out of India.

ü      Sub rule 6 has been amended. There are two amendments in this sub rule. Firstly, in the proviso the words ‘starting from the end of the year containing the’ has been replaced by the words ‘from the.’

The proviso states that where a dealer is a manufacturer in goods not being a job worker, then set off on plant and machinery, parts, components and accessories and also on consumables, stores, packing materials can be claimed for a period of three years.

The amendment is with respect from which date will the period of three years be calculated. Prior to the amendment the period of three years will be calculated from the end of the year containing the date of effect of registration and now after amendment the period is limited to three years from the date of effect of registration.

Second amendment is with respect to the insertion of an Explanation. This explanation clarifies what would mean by the term ‘receipts?’ As per the amendment, receipts means as follows:

“Explanation- For the purpose of this sub rule, the ‘receipts’ means the receipts pertaining to all activities including business activities carried out in the state but does not include the amount representing the value of the goods consigned not by way of sales to another state o oneself or to one’s agent.”

In absence of this explanation, there was a confusion as to what should receipts be considered. In case if a dealer has a multi-state activity and receipts arising from other states are on account of service income then will set off be required to be reduced, if receipts of account of sale of goods are less than 50% of the total receipts. This amendment now clarifies the issue wherein only receipts arising from the state needs to be considered.

4) Amendment in Rule 58:

The Government of Maharashtra has vide notification number No. VAT-1507/CR-53/Taxation-1 amended Rule 58 and has now inserted sub rule 1(A) with effect from 20th June 2006. The new inserted rule is as follows: –

“(1A) In case of a construction contract, where alongwith the immovable property, the land or, as the case may be, interest in the land, underlying the immovable property is to be conveyed, and the property in the goods (whether as goods or in some other form) involved in the execution of the construction contract is also transferred to the purchaser such transfer is liable to tax under this rule. The value of the said goods at the time of the transfer shall be calculated after making the deductions under sub-rule (1) and the cost of the land from the total agreement value.

The cost of the land shall be determined in accordance with the guidelines appended to the Annual Statement of Rates prepared under the provisions of the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the 1st January of the year in which the agreement to sell the property is registered:

Provided that, deduction towards cost of land under this sub-rule shall not exceed 70% of the agreement value.”

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