SESSION BY KIRAN G GARKAR, FCA

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SESSION BY KIRAN G GARKAR, FCA
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AMENDMENT TO MVAT ACT, 2002 & RULES,
2005

CHANGES IN COMMODITY TAXATION
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CHANGES IN COMPOSITION SCHEMES
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MAHARASHTRA SETTLEMENT OF ARREARS IN
DISPUTES ACT, 2016
CHANGES IN RETURN PROCEDURE
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Amendments vide L A Bill XVIII dated 04/04/16
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Effective from
◦
◦
◦
◦
01/04/2016
01/05/2016
Date of publication of this Act in Official Gazette
From date to be notified in official Gazette.
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IInserted
d from
f
01/04/2016
By general or special order published in Official
Gazette
Subject to such conditions, exceptions or
restrictions,
Exempt wholly or partially from payment of tax
The transfer of property in goods involved in
sizing or warping of yarn
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Proviso substituted from 01/05/2016
Rejection order to be passed without giving
an opportunity of hearing. Intimation to be
given in p
g
prescribed manner.
◦ On finding that registration application is not
complete
◦ Documents prescribed for grant of registration have
not been uploaded
◦ Such documents are not consistent with information
keyed in the application or not legible
◦ Prescribed conditions are not fulfilled
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If all discrepancies are complied within 30
days from the date of intimation
If they
y are approved
pp
by
y authority
y
Application rejected shall stand restored.
Only one opportunity to be given for
compliance.
Trade Circular 7T/2016>Certain clarifications
about procedure
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Proviso to be added from date of publication
of Act
If Commissioner is satisfied that any person
◦ (a)who has voluntarily got himself registered has not
commenced the business within 6 months of
registration
◦ (b) has obtained registration by fraud or
misrepresenting the facts
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He may after hearing the person cancel RC
with effect from such date as may be fixed in
accordance with rules.
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Effective from date of publication of Act.
R i d return can be
Revised
b furnished
f
i h d suo motu
upto date of filing of audit report u/Section
61 for
f that
th t year.
These can be revised multiple times. Earlier
restriction
t i ti
removed.
d
Drafting error> date prescribed for furnishing
off audit
di report. ISSUE:
ISSUE Due
D
D
Date
i 15th
is
January, but audit report uploaded on 15th
D
b
December.
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Effective from date of publication of Act
If all the returns for period from 1/4/12 are
filed by registered dealer within prescribed
time for revising returns u/Sec.
u/Sec 20(4)(a)
alongwith taxes,
Assessment of amount of tax due on the basis
of such returns.
Provided if no AO is made within 4 years
from the end of the year, then such returns
accepted
shall be deemed to have been accepted.
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Effective from date of publication of Act
After initiation of proceedings under s/S 2,3,4
234
or 5
After considering
g all documents or evidence
produced by dealer or as the case may be
available with Department, officer may send
obser ations about
observations
abo t tax
ta liability
liabilit by
b an intimation
in prescribed form, before passing of AO
Intimation shall be communicated in the
prescribed manner to dealer not less than 6
months before date of expiry
p y of limitation
period for assessment under respective sub
section.
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If dealer agrees with all observations in the
intimation and files return/revised return and
makes full payment of tax and applicable
interest
Then a confirmation order shall be passed.
A
Assessment
t proceedings
di
shall
h ll be
b deemed
d
d to
t
have been closed.
23(5B) Provisions
23(5B):
P
i i
shall
h ll be
b
applicable
li bl
to
proceedings pending as on 1/4/2016.
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With effect from 01/04/2011
During course of any proceedings
If CST is of opinion that any transaction
entered into by any dealer for a sale
price, which is below the prescribed FMP
for commodity for a prescribed class of
dealers, so as to be liable, to pay less tax
than taxes which would have been
otherwise become payable
He shall determine tax liability as per
FMP of such transaction while passing
order.
order
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Any amount or sum deducted on or after
1/4/16 under section 31 & paid to the State
Govt. may be
◦ Claimed as payment of tax by the person making
said supply to the employer OR
◦ Transferred as a credit to sub contractor in
prescribed manner if sub contract has been awarded,
in respect of concerned contract.
[ b contractor
[sub
t t
may claim
l i
credit
dit in
i the
th period
i d in
i
which principal has transferred credit of such
amount to him or in any subsequent period].
Deliberate change for time to claim for Main
Contractor or drafting oversight?
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To be effective from date to be notified
Every employer liable to deduct TDS shall apply
for this number
It is to be mentioned in all related documents,
statements and returns
If employer is registered under MVAT Act, he is
not required to apply
Consequently sub section 9 to 13 are added.
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s/Section 9> credit available to sub
contractor, if it has been transferred to him.
s/S 10> Filing
g of return by
y Employer
p y
s/S 11> Provision for filing revised return
s/S12> Penalty for not getting registered,
upto amount equal to TDS sum [Hearing
p
prescribed]
]
s/S13> Failure to file return in time, penalty
upto
p Rs. 5000 [[Hearing
g implied?]
p
]
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With effect from 1/5/2016 in lieu of Section
56 which is deleted.
deleted
Entirely substituted by 15 sub sections
Application to Commissioner on questions
prescribed in form and manner
To constitute Advance Ruling Authority [ARA]
comprising
i i
off 3 officials,
ffi i l nott below
b l
rank
k off
Joint Commissioner
H may allot
ll
h questions
i
ll
He
any off the
or all
questions to ARA
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CST may allot any application or question in
such application u/S 56 and pending on the
date of effect of this amendment or any class
of applications to ARA.
CST or ARA, shall subject to rules make AR
within 90 days from date of acceptance of
application
Application may be withdrawn within 30 days
from date of submission.
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7(a)> No application shall be accepted where
◦ Question is already pending before MSTT,
MSTT
Bombay HC or SC in respect of the
applicant.
applicant
◦ Related to transaction or issue which is
designed apparently for avoidance of tax.
tax
7(b)> CST may call for report from
concerned officer
7(c)> Communication regarding acceptance
li ti
h ll be
b made
d within
ithi 30 days.
d
off application
shall
7(d)> No rejection without hearing and
reasons for
f rejection to be
b recorded.
d d
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8 > Hierarchy
◦ AR orders
d
off Commissioner
C
i i
bi di
binding
on all
ll officers,
ffi
appellate authority and ARA in respect of similarly
situated persons.
◦ ARA orders binding on all officers, appellate
authority other than Commissioner in respect of
similarly situated persons.
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9 Prospective
9>
P
i effect
ff
may be
b granted
d
10> Appeal against AR to lie to the Tribunal
and shall be subject to conditions prescribed.
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11> Non obstante clause> no appeal to be
entertained
under
any
circumstances
whatsoever, after date of expiry of 30 days
from date of communication of AR order to the
applicant.
12> AR orders subject to instructions,
directions issued u/Section 10 (10) and any
order passed u/S 56, as it existed.
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13> Rectification
By CST before order so issued has been given
effect by officer concerned.
Applicant may bring mistake apparent on
record to notice of CST within 30 days of
receipt of order.
No rectification without hearing the applicant.
To be passed within 60 days from date of
receipt of AR by the applicant.
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14> (a) CST has power to examine AR by ARA,
if erroneous or prejudicial to interest of
revenue, Just and proper order may be
p
passed.
( ) For reasons to be recorded in writing,
(b)
g, on
his own motion may review AR. Before
initiation of review proceedings, permission
f
from
S
State
G
Govt.
necessary. Also
Al
when
h
ruling
li
likely to be contrary to Section 56.
Prospective effect can be granted.
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14> No review order to be passed
( ) after
(a)
f
expiry
i off 6 months
h from
f
the
h end
d off
year containing the date of AR.
(b) after
f
expiry
i off three
h
months,
h from
f
the
h end
d
of the month in which State Govt. gives
permission
i i
t initiate
to
i iti t the
th action.
ti
15> Regulations regarding procedure to be
followed, to be formulated by Commissioner.
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Section 70> Power to collect Statistics
Any
yp
person who fails to furnish information
as provided in this section within prescribed
p
period,
,
Prescribed Penalty of sum not exceeding Rs.
1 lakh
In case of continuing default for a period
beyond
two months,, p
penalty
y
y of Rs. 1000
per day
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Section 88> Reference of ‘Ultra Mega unit’
added.
added
Section
S
i
89(3) The
Th invoice
i
i
i
issued
d by
b specified
ifi d
unit to carry additional certificate
◦ M
Mega unit,
i
Ul
Ultra
M
Mega
unit,
i
h ldi
holding
valid
lid
Identification Certificate
◦ Very Large unit,
unit Mega Unit- Deferment of tax
payment under 1993 PSI.
purchasers
◦ Immediate & Subsequent
q
p
◦ Penalty equivalent to amount of tax in the invoice is
provided for.
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Notwithstanding
N
ih
di
anything
hi
contained
i d in
i rules
l 52,
52 53 and
d 54,—
54
(1) If the claimant dealer has purchased (i) goods covered
under the entries 13 and 14 of the Schedule ‘ D ’ appended
pp
to
the Act, or (ii) 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 in respect of the said
goods only to the extent of aggregate of,— (a) the taxes paid
or payable under the Central Sales Tax Act, 1956 on the interstate resale of the corresponding goods,
goods and (b) the taxes
ta es paid
on the purchases of said goods, if are resold locally under the
Act.
(2) The set-off as determined under sub-rule (1) above in
respect of the said goods shall be claimed only in the month in
which
corresponding
sales
of suc
such goods is
effected
c co
espo d g sa
es o
s e
ected by tthe
e
claimant dealer : Provided that, nothing in this rule shall apply
to the purchases of such goods which are sold in the course of
export of goods out of the territory of India.
India ”
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•
“(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,
purpose,
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.
dealer.”
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Sub-rule(a):
“Purchases
Purchases of motor vehicles being passenger
vehicles which are treated by the claimant dealer
as capital assets & parts,
parts components and acces
sories thereof unless the claimant dealer is

engaged in the business of transferring the right
to use (whether or not for a specified period ) for
anyy p
purpose
p
in respect
p
of the said vehicles and
the expression “ motor vehicles” shall have the
same meanings as respectively assigned to them
in the Motor Vehicles Act, 1988.
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Entry, as defined under the Maharashtra Tax on the
Entry of Goods into Local Areas Act, 2002 or, as the
case may
ma be,
be purchases
p rchases of the High Speed Diesel Oil,
Oil

Aviation Turbine Fuel (Duty paid), Aviation Turbine
Fuel (Bonded), Aviation Gasoline (Duty paid), Aviation
Gasoline (Bonded) and Petrol unless such motor
spirits are resold or sold in the course of inter-State
trade or commerce or in the course of export out of
the territory of India or are sent by reason of sale,
outside State to any place within India by the claimant
dealer
to
his
own
place of business, or the place of business of an
agent or where the claimant dealer is a commission
agent, to the place of business of his principal
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For following commodities as tabulated
tabulated, rate
of Sales Tax continues @ 2% , 3% or 5% wef
01/04/2016.
01/04/2016
For rest of the goods covered by Schedule C
C,
where rate was 5% has been changed to 5.5%
with effect from 01/04/2016.
01/04/2016
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Sch.
Entry
Description
Rate
C-4(a)
Cotton yarn but not including Cotton
yarn waste
C-8
Aviation Turbine fuel sold to a
Turboprop Aircraft
C-22
Coal including coke in all its forms
but excluding charcoal.
charcoal
C-25(a) Cotton , that is to say, all kinds of
cotton (indigenous or imported) in its
unmanufactured
state,
whether
ginned or unginned,
unginned baled , pressed
or otherwise excluding cotton waste
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2%
5%
5%
2%
32
Sch.
Sc
Entry
Description
Rate
C-25(c)Cotton seed (Gossypium Spp)
2%
C-27
C-45
C
45
C 55
C-55
Crude Oil, that is to say….. Refer
detailed entry
5%
Hides & skins, Whether in raw or
dressed state.
5%
Iron & Steel,
Steel that is to say…
say
Refer
detailed entry.
5%
C-57
Jute, that is to say….. Refer detailed
entry
5%
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Sch.
Entry
Description
Rate
C-58 (a) Kerosene Oil sold through Public
Distribution System
C-58 (b) Liquefied
Petroleum
Gas
for
domestic use
C-68
Oil Seeds, that is to say….. Refer
detailed entry
C-101 Fabrics & sugar as defined from
(a)
time to time in Section 14 of CST
Act. Kindly note that some
Furnishing Fabrics are covered
by this entry
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3%
3%
5%
5%
34
Please keep in mind tax position for following
items.
C-25(b)
C
25(b)
C-55B
Cotton Waste
5.5%
5
5%
Tool, alloy and special steels of
categories
t
i specified
ifi d iin clause
l
((x)) tto
(xv) of entry 55
5.5%
C-81 (b) Other articles of personal wear…
including
g Terry
y Towels
5 5%
5.5%
C-101(b) Varieties of Textile & Textile Articles
Kindly note that some Furnishing
Fabrics are covered by this entry
5.5%
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Other Changes in Commodity Taxation
WEF 01/04/2016
[Details given in short. Please check exact entry]
Rate
A 9A
A-
Paddy,Rice,Wheat,Pulses
P
dd Ri Wh t P l
-Exemption
E
ti
to continue upto 31/03/2017
A 12A sub
A-12A
b entry (2) > Mammography
M
h
machines used for diagnosis of breast
cancer
A-13A Hybrid electric buses/Battery opeated
b
buses,sold
ld to public
bli transport
undertaking
A 27B Handicrafts made of bamboo
Aexcluding bamboo furniture
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0%
0%
0%
0%
36
Other Changes in Commodity Taxation
WEF 01/04/2016
[Details given in short
short. Please check exact entry]
A-51
(vii)
Rate
Towels covered by 63049260
0%
[* Terry Towels continue to be tax free]
A-59A Retrofit kits-used to modify
y vehicles of
handicapped persons
0%
C-10
Bamboo & Bamboo products,
products
Excluding covered by A-27B
5.5%
C-29A
Sterile water for injection
5.5%
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Oth Ch
Other
Changes iin C
Commodity
dit T
Taxation
ti
WEF 01/04/2016
[Details given in short
short. Please check exact entry]
CVegetable Oil including gingili Oil ,
30(b) Castor oil & Bran Oil [Explanation
added to exclude coconut oil in
packing upto 500 ml > Tax @ 12
12.5%]
5%]
C-3A
Barbed Wire, wiremesh & chain link.
CPyrolysis Oil made from plastic scrap &
79A
i waste.
t
organic
CRepossessed Vehicles sold by Banks &
82B financial
fi
i l iinstitutions
tit ti
(C
(Conditional)
diti
l)
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Rate
5 5%
5.5%
5.5%
5 5%
5.5%
5 5%
5.5%
38
Other Changes in Commodity Taxation
WEF 01/04/2016
[Details given in short
short. Please check exact entry]
C-104 amended to include following items >
(c)
"pencil
pencil Box
Box, gum,
gum gum sticks
sticks, stapler
pins,tape dispensers, dusters, files"
C 107 Shelled Sweet Corn> processed,
C-107
(11)(g) unprocessed, semi processed etc…..
Rate
5.5%
Except when served for consumption 5.5%
C-111 LED Tube Lights included along with
LED Bulbs
5.5%
Entry Sch. Entry 15(2)
l b off Marble
bl and
d Granite
Slabs
Tax
12.5%
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New Rates with effect from 01/04/2016 :
(i) 5 per cent.
cent of the turnover of sales,
sales referred to in
column (3), in the case of a registered dealer, whose
turnover of such sales,, does not exceed rupees
p
three
crore in the previous year, to which the composition
scheme is desired
(ii) 8 per cent. of the turnover of sales, referred to in
column (3), in the case of a registered dealer, whose
turnover off such
h sales
l
exceeds
d rupees three
h
crore in
the previous year, to which the composition scheme is
desired
(iii) 10 per cent. of the turnover of sales, referred to in
column (3),
(3) in the case of an unregistered dealer.
dealer
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Additional condition:
(viii) The dealer who opts out or, as the case
may be, ceases to be eligible for the
composition scheme, may claim set-off in his
first
return
to
be
uploaded
p
as
a
noncomposition dealer, after opting out of
composition scheme on the purchases of
goods which are held in stock on the date of
opting out of the composition scheme and on
which he had not claimed set-off earlier.
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Additional condition:
(ix) The dealer opting for the composition scheme
under this notification shall reverse the set-off,
claimed by him on the purchase of goods which are
h ld in
held
i the
th stock
t k on the
th date
d t off opting
ti
f
for
th
the
composition scheme. Such amount of set-off shall be
paid by him alongwith his first return of composition
scheme, after opting for the composition scheme.
 Tr.
Tr Circular 9T/2016> To opt in or opt out,
out form
to be filed on or before 15/05/2016
 To whom to apply: JC of Sales Tax (VAT ADM)
concerned or, the JC of Sales Tax of the concerned
Nodal Division as the case may be.
be

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•
•
4% /6% of the first fifty lakhs TO of sales
referred
f
d to in column
l
3 and
d goods
d imported
d
out of Maharashtra State , if any, excluding
b
bread
d in
i
l f rolls,
loaf,
ll
slices,
li
toasted
d or
otherwise in the case of a registered dealer /
unregistered
i t
d dealer.
d l
To whom to apply: Joint Commissioner of
S l Tax
Sales
T
(VAT Administration)
Ad i i t ti ) concerned
d or,
the Joint Commissioner of Sales Tax of the
concerned Nodal Division as the case may be
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Eligible if turnover of sales of goods [means
TO excl. Motor Spirits and Furnishing Fabrics
(C-101)]
(C
101)] has not exceeded Rs. One crore in
the previous year to which composition is
desired.
Dealers desirous to opt in for composition
have to upload Form 4A on or before
30/04/2016 [Tr. Circular 9T/2016]
Condition (vi): Dealer opting for composition
shall file six monthly returns. >> This
condition has been deleted.
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
To whom to apply: Joint Commissioner of
Sales Tax (VAT Administration) concerned or,
the Joint Commissioner of Sales Tax of the
concerned Nodal Division as the case may be.
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Kindly go through exact wording/text of the
scheme and Act
Detailed clarifications, Trade Circular, Rules
etc. is y
yet to be received
In the next few slides, only bare scheme of
settlement of disputed arrears is explained
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2(2) “arrears in dispute” includes,
(i) tax, by whatever name called, under the relevant
Act;
(ii) interest payable by an applicant under the
relevant
l
A
Act;
(iii) penalty imposed upon the applicant under the
relevant Act,
Act
in respect of any statutory order pertaining to any
period ending on or before the 31st March 2012,
2012
against which appeal is filed and stay in full or part
has been g
granted by the appellate authority under
the relevant Act or, as the case may be, by the
Tribunal or Court, not later than 30th September
2016 ;
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2(3) “applicant”
applicant means a person
person, who is liable
to pay tax under the relevant Act and also
includes any person who desires to avail the
benefit of settlement by complying with the
conditions under this Act
Acts covered: 11 Acts
Acts, Rules made and
notifications issued there under
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

2(8) “requisite
requisite amount
amount” means an amount
required to be paid as specified under section
6 of this Act;
2(9) “statutory
statutory order
order” means any order passed
under the relevant Act, raising tax, interest or
penalty payable by the applicant.
applicant
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



4. (1) The applicant who desires to settle the arrears
in dispute
p
shall submit the application
pp
to the
designated authority, upto the 30th September 2016
in such form and in such manner, along with the
prooff off paymentt off requisite
i it amountt as per subb
section (1) or (2) of section 6 of this Act.
(2) A separate application shall be made by an
applicant for each statutory order, under each of the
relevant Act.
(3) The applicant shall produce the proof of
withdrawal of appeal, if any, as per section 5.
(4) The applicant shall pay the full amount of
undisputed arrears under the relevant Act in respect
off the
h statutory order
d for
f which
hi h waiver
i
i sought.
is
h
KIRAN GARKAR & CO.
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

5. The applicant
pp
who desires to avail the waiver
under this Act with respect to the arrears in dispute
shall withdraw the appeals pending before the
appellate
ll
authority
h i or Tribunal
T ib
l or, as the
h case may
be, before the Court on or before the 30th
September 2016 :
Provided that,
that where the applicant desires to opt for
settlement of arrears in dispute for some of the
issues raised in appeal then he shall withdraw the
appeal in respect of such issues.
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

(3) The payment of requisite amount under subsections
ti
(1) and
d (2) off this
thi section,
ti
shall
h ll be
b made
d in
i
the form of Challan prescribed under the relevant
Act or,
or as the case may be,
be in Form MTR
MTR-6
6
prescribed under the Maharashtra Value Added Tax
Rules, 2005.
(5) The extent of waiver as per this section shall be
granted in proportion of the payment made under
sub-sections (1) and (2) of this section by the
applicant
applicant.
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
(4) Notwithstanding anything contained in any
provision
i i
under
d the
th relevant
l
t Act,
A t the
th partt paymentt
made in appeal before the appellate authority,
under the relevant Act,
Act Tribunal or Court,
Court shall be
considered for payment of the requisite amount
under this Act, and it shall first be adjusted against
the tax and thereafter towards the amount of
interest and the balance amount remaining
unadjusted
dj t d shall
h ll then
th
b adjusted
be
dj t d towards
t
d the
th
penalty.
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



6(1) Where the arrears in disputes pertain to any
assessment period ending on or before the 31st
March 2005 under the relevant Act
Conditions for Waiver:
The applicant shall pay whole amount of tax out of
arrears in dispute
p
after reducing
g it by
y the p
part
payment.
In case, where the appeal is withdrawn for some of
the issues, then the whole amount of tax pertaining
to such issues withdrawn in appeal and credit of
part payment in proportion to tax involved in the
withdrawn issue.
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

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Extent of waiver
Total amount of interest and penalty out of
arrears in dispute
p
pertaining
p
g to issues
withdrawn as provided in section 5.
Total amount of post assessment penalty and
interest accrued upto
p date of p
payment
y
of tax
made as per column 2 & such penalty and
interest on p
payment
of tax considered under
y
sub section 4 pertaining to issue withdrawn.
KIRAN GARKAR & CO.
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



6(2) Where the arrears in disputes pertain to any
assessment p
period on or after 1st April
p 2005 and
ending upto the 31st March 2012 under the
relevant Act
Conditions for Waiver:
The applicant shall pay whole amount of tax and
25% of outstanding
o tstanding interest out
o t of arrears in
dispute after reducing it by the part payment.
In case,
case where the appeal is withdrawn for some of
the issues, then the whole amount of tax and 25%
of outstanding
pertaining
g interest p
g to such issues
withdrawn in appeal and credit of part payment in
proportion to tax involved in the withdrawn issue.
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

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Extent of waiver
Balance amount of interest , whole amount of
penalty out of arrears in dispute pertaining to
issues withdrawn as provided in section 5.
Total amount of post assessment penalty and
interest accrued upto date of payment of tax
made as per column 2 & on payment of tax
considered under sub section 4 pertaining to
issue withdrawn.
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
Section 7:Disposal of Application
◦ (1) Defect notice for the incomplete or incorrect
application. The applicant shall within fifteen days
f
from
the
h receipt
i off the
h notice
i
,correct the
h defects
d f
and make the payment, if any.
◦ An appeal against the order as per 7(1) shall lie to
 the Deputy Commissioner, if order is passed by the
authority
y subordinate to him,,
 the Additional Commissioner, if the order is passed
by the Deputy Commissioner or the Joint
C
i i
Commissioner.
◦ (2) The applicant may file an appeal within sixty days
from date of receipt of the order.
order
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

(3) No appeal shall lie against the order of
settlement passed under subsection (2) of
section 7.
The designated authority may, on his own
motion
ti
or on application
li ti
off the
th applicant,
li
t
within thirty days from the date of receipt of
order by the applicant under sub-section
sub section (2)
of this section, rectify any error apparent on
the face of the record
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

9. Under no circumstances, the applicant shall be
entitled
titl d to
t refund
f d off any amountt off arrears in
i
disputes paid prior to the date of commencement
of this Act and the amount paid under this Act.
Act
11. After an order is passed by the designated
authority, the Commissioner may, on his own
motion, at any time, within twelve months from the
date of service of order, call for the record of such
order and after notice of error in such order, in so
revenue
far as it is prejudicial to the interest of revenue,
may serve on the dealer a notice and pass an order
to the best of his judgement, where necessary.
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
10. Notwithstanding anything contained in section
7 where it appears to the designated authority that,
7,
that
the applicant has obtained the benefit of
settlement,
by
suppressing
any
material
information or particulars or by furnishing any
incorrect or false information or, if any suppression
of material facts, concealment of any particulars is
found in the proceedings related to search and
seizure
i
under
d the
h relevant
l
A
Act,
then
h
the
h designated
d i
d
authority may, for reasons to be recorded in writing
and after giving the applicant a reasonable
opportunity of being heard, may revoke the order
of settlement issued sub
sub-section
section (2) of section 7.
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KIRAN GARKAR & CO.
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



Pursuance to
P
t the
th above,
b
new template
t
l t off annexures and
d
returns in Form 231, Form 232, Form 233, Form 234,
Form 235 & CST Form III (E) have been introduced in place
off old
ld annexures J1, J2 and
d respective old
ld return forms.
f
All Dealers are required to file Sales
Sales-Purchase
Purchase annexures
before submission of return. (Form 232 filers, composition
dealers with entire turnover under composition are
required to file purchase annexure only.
only They need not file
Sales annexure).
On or before the prescribed date, dealer has to submit
return online along with payment of taxes due as per
return. Dealers can also make advance payment before
online filing of return.
Prescribed
P
ib d due
d
d t for
date
f filing
fili
off return
t
i 21st
is
21 t day
d
off the
th
succeeding month.
KIRAN GARKAR & CO.
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






Downloading of Sales & Purchases Annexure
Template
Preparation of Sales and Purchases Annexure
M
Manual
l IInput iin P
Preview
i
R
Return
Uploading of Annexures
Auto Preparation of Draft Return in PDF
Verification of ITC Step
Submission of Return with Payment
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


To be prepared in the format shown below.
Every invoice is to be entered across one
row irrespective of various tax rates or
different types of sales.
sales
Permutation and combination of various
t
type
off sales
l are allowed
ll
d in
i a single
i l invoice,
i
i
such as• T
Taxable
bl
sales
l
(i l di
(including
works
k
composition sales)
• Inclusive of tax sales & Tax free sales
• Exempted sales u/s 41 and 8
• Labour charges & Other charges
KIRAN GARKAR & CO.
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•
•
•
•
•
•
•
•
100 - for sales to TIN holder (RD)
200 - for sales to Non-TIN holder (URD)
300 - for Branch Transfer/Consignment sales
800 - for deduction u/s 3(2) i.e. turnover of
sales
l b
before
f
crossing
i
th
threshold
h ld limit.
li it
600 - for goods return (applicable in case of
transactions under codes 100,
100 200 and 800)
700 - for credit notes (applicable in case of
transactions under codes 100,
100 200 and 800)
680 - for goods return (applicable in case of
transactions under code 300)
780 - for credit notes (applicable in case of
transactions under code 300)
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




Code Description of Transaction 100 Sales to TIN Holder
(within
state
or
Inter-State
excluding
against
Form/Declaration)
o / ec a at o )
200 Sales to Non-TIN Holder (within state or Interstate)
Transaction code 100 is for Sales to TIN holder (RD) (Within
St t ) Same
State).
S
can be
b used
d for
f
CST return
t
also,
l
i case interin
i t
State sales without any Form or declaration.
Transaction code 200 is for Sales to Non-TIN holder (URD)
(Within State). Same can be used for CST return also, in case
inter-State sales on schedule rate of tax.
Permutation and combination of various types of sales under
transaction type 100 and 200 are permissible, such as• Taxable sales , Inclusive of tax sales & Tax free sales
• Exempted sales u/s 41 and 8 (Except for exempted sales u/s
8(4) i.e. PSI sales for which separate transaction type 500 is
provided in respect
p
p
of return form 234) , Labour charges
g
&
Other charges
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


3. Composition
p
under section 42 (1), (2)
(Within State) [400] –
For the p
purpose
p
of form 233,, the transaction
codes in sales annexure for Composition
under section 42(1) and (2) [Within State] is
400.
The Composition
p
scheme under section 42(1)
and (2) for Retailer and/or Restaurant, Club,
Caterer and/or Baker and/or Second hand
motor
vehicles
dealer
and/or
Lease
composition dealer.
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


Works Contract Composition (Within State)
[450] –
For the purpose of form 233, the transaction
codes in sales annexure for Works Contract
Composition (Within State) is 450.
The Composition scheme under section 42(3)
and (3A) for Works Contract dealer.
KIRAN GARKAR & CO.
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KIRAN GARKAR & CO.
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


Amount of Sub-contract where tax paid by
sub-Contractor
sub
Contractor [480] –
For the purpose of form 233, the transaction
codes in sales annexure for Amount of Sub
Subcontract where tax is paid by Sub-contractor
is 480.
The sales transaction between Principal
contractor and sub
sub-contractor
contractor which is NON
INVOICE TRANSACTION.
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


Amount off Sub-contract
A
S b
where
h
tax paid
id by
b
Principal Contractor [490] –
For the
h purpose off form
f
233, the
h transaction
codes in sales annexure for Amount of Subcontract where
h
tax is
i paid
id by
b Principal
P i i l
Contractor is 490.
Th
The
sales
l
transaction
i
b
between
P i i l
Principal
Contractor and sub-contractor which is NON
INVOICE TRANSACTION.
TRANSACTION
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KIRAN GARKAR & CO.
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


PSI Exempted Sales (Within State) [500] –
F the
For
h purpose off form
f
234,
234 the
h transaction
i
code in sales annexure for PSI Exempted
S l (Within
Sales
(Withi State)
St t ) is
i 500.
500
The same can be used for CST return also.
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








Sales Transactions to TIN holder against C-Form (Decl)
[900]
Goods return [600] and credit notes [700] for Interstate
Sales to TIN holder against Form-C (Declaration) [900]
transactions
Branch Transfer / Consignment (Inter-State)
(Inter State) [300]
Sales outside the State (Sales effected outside the State
of Maharashtra) [910] and Sales in Transit [920] & Sales
to Consulate (Interstate) [930]
Export on H- Form (Inter-state) [940]
Direct Export (Inter-state) [950]
Import Sales (High seas) (Inter-state) [960]
Interstate Sales u/s 8(6) i.e. Against Form-I (Inter-state)
[970]
Exempted Sales (Inter-state)[500] (Only applicable to PSI
exempted dealer)
KIRAN GARKAR & CO.
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•
•
•
Purchase annexure is to be prepared in
following format.
Every invoice is to be entered across one row
irrespective of various tax rates or different
types of purchases.
Permutation and combination of various type
of sales in single invoice is allowed, such as• Taxable sales, including works contract composition
sales
• Inclusive of tax sales , Tax free sales , Exempted
sales u/s 41 and 8 and Labour charges , Other
charges
KIRAN GARKAR & CO.
22/04/2016
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Transaction code are assigned to the nature of
transactions such astransactions,
10 - for purchases from TIN holder (RD)
15 - for purchases from TIN holder (RD) capital goods
20 - for
f purchases
h
Non-TIN
N
TIN holder
h ld (URD)
30 - for Inter-state Branch Transfer/Consignment
purchases
35 - for
f within
ithi the
th State
St t Branch
B
h Transfer
T
f
40 - for Inter-State Purchases against Form-C
45 - for within the State Purchases against Form-C
(P
(Purchase
h
iin transit
i u/s
/ 6(2))
50 - for inter-State Purchases against Form-H
55 - for within the State Purchases against H Form
60 - for imports (Direct)
65 - for imports (High Seas)
70 - for inter-State Purchases without Form
75 - for inter-State Purchases against Form-I
80 - for deduction u/s 3(2), turnover of purchases before
crossing threshold limit
KIRAN GARKAR & CO.
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Goods return and debit notes- 90
for goods return (applicable to 10, 15 and 80) 95
for debit notes (applicable to 10, 15 and 80) 91
for g
goods return (applicable
( pp
to 20)) 96
for debit notes (applicable to 20) 31 - for goods return (applicable to 30) 32
for debit notes (applicable to 30) 41 - for goods Return (Interstate
Purchases against Form
Form-C)
C) (applicable to 40) 42
for debit Note (Interstate Purchases against Form-C) (applicable to 40) 46
for goods Return (Within State purchases against Form-C) (appli. to 45) 47
for debit Note (Within State Purchases against Form-C)
Form C) (applicable to 45) 51
for goods Return (Inter State Purchases against Form-H) (applicable to 50)
52
for debit Note (Inter State Purchases against Form-H)
Form H) (applicable to 50) 56
for goods Return (Within State Purchases against Form-H) (appli. to 55) 57
for debit Note (With State Purchases against Form-H) (applicable to 55) 61
f goods Return (Direct Import) (applicable to 60) 62
for
for debit Note (Direct Import) (applicable to 60) 66
for goods Return (High Seas) (applicable to 65) 67….
KIRAN GARKAR & CO.
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

Transaction code
Purchases from TIN
Transaction code
Purchases from TIN
10 is for Within State
Holder.
15 is for Within State
Holder (Capital Asset).
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



IInter-State
S
Purchases
P
h
against
i
Form-C
F
C [40]
Within the State Purchases against Form-C
(P
(Purchase
h
in
i transit
i u/s
/ 6(2) off CST Act)
A ) [45]
Inter-State Purchases against Form-H [50]
Within the State Purchases against H Form [55]
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KIRAN GARKAR & CO.
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96
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KIRAN GARKAR & CO.
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99
KIRAN GARKAR & CO.
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100
KIRAN GARKAR & CO.
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101
KIRAN GARKAR & CO.
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102
KIRAN GARKAR & CO.
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103
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






Presumption: full time devoted staff for
return preparation and updating thereafter.
thereafter
Transactions with Non TIN holders, esp. by
retailers not under composition?
Branch Tr.> Local ?? Self TIN to be picked up?
I
Invoice
i numbers
b
f URD purchases?
for
h
?
Leasing dealers> Tax can be collected.
Section 8 > includes
l d sales
l u/s 5(2)
( )
H form sales to Local Customers
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


After .txt extension file is uploaded,
programme will run for calculation of ITC &
carry out other necessary validations.
Dealer will be able to see draft return in pdf
format.
Dealer may file the said return or modify the
annexure.
KIRAN GARKAR & CO.
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•
•
•
•
•
•
•
Process of verification of claims
V ifi i
Verification
off ITC passed
d on by
b the
h vendors
d
Claim of ITC in returns as per Dealer’s
disclosure.
disclosure
Disallowance of un confirmed ITC
Allowance
of
disallowed
ITC
after
confirmation of transaction by sellers
Disclosure of rule 53 retention & rule 54
negation
Claim of goods returned > subject to
confirmation
by
third
party
customer/supplier.
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


After
te up
uploading
oad g o
of return,
etu , tthe
e syste
system will
generate form type wise acknowledgments.
It will also generate form type wise chalans.
Prior to filing of return a dealer may make
advance payment of due tax. Credit of the
same will be visible to the dealer when he
files the return.
KIRAN GARKAR & CO.
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



Monthly return in Form 424 by the employers
TIN, names of contractors and corresponding
amounts
Revised returns after revising annexure. To be
subjected to specific validations.
Mandatory payment of fees before filing
delayed return.
KIRAN GARKAR & CO.
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•
•
•
•
•
•
Last return for FY 2016-17 for dealers not
eligible to upload F 704
Annexure of CST forms recd.
recd or pending
PAN wise URD purchases in excess of Rs.
100000
TIN Wise HSN Details,
A
Annexure
off latest
l t t bank
b k accounts,
t closed
l
d
accounts
A
Annexure
off imports
i
and
d exports
KIRAN GARKAR & CO.
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