TRADE CIRCULAR.
To
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No.VAT/AMD-1005/1B/Adm-3 Mumbai Dt: 26.04.2006
Trade Cir- 14 T of 2006
Sub: Filing of returns in new forms 221,222,223 224 and 225.
Ref: Government Notification No. STR. VAT-1506/CR-5/ Taxation-1 dated 3rd April 2006.
Gentlemen/Sir/Madam,
Government of Maharashtra has issued a notification, dated 3rd April 2006 as referred above, by virtue of which some amendments are made in rule 17 and rule 18 of the Maharashtra Value Added Tax Rules, 2005. The salient features of the amendments are explained below.
2. New returns should be filed in forms 221,222,223, 224 and 225, as appropriate, which can be obtained from the Sales Tax Department or can be downloaded from website www.vat.maharashtra.gov.in. They can also be obtained privately but should conform with the details of the forms issued by the Sales Tax Department and paper used should be of white colour, A4 size and minimum thickness of 70 g.s.m. or of the executive bond variety.
3. The returns should be in the form mentioned in column (2) of the table below for the dealers mentioned in column (3).
(b) All dealers who are engaged in the activity of transfer of the right to use any goods for any purpose whether partly or fully.
(c) All dealers who are partly opting for composition.
4. Some of the queries related to the amendments are clarified below:
(1) A notified oil company should file return in Form 225. But if the company is also doing works contract or doing leasing work then the company should also file return in form 223 for the same period for the works contract or leasing business.
(2) A dealer covered under Package Scheme of Incentives holding valid certificate of entitlement should file his return in form 224. However, if he also does works contract or leasing work, then he should also file a return in form 223.
(3) A general dealer is liable to file a return in form 221. But if he is also doing business of execution of works contract or transfer of right to use any goods for any purpose or has opted for composition for part of his business, then he should file return only in form 223 and not in form 221.
(4) Dealers who have not filed returns in respect of any period ending on or before 31st March 2006 before 31st March 2006, should invariably file return in form/s mentioned in the column (2) of the table above and not in the old Forms.
(5) Every registered dealer who is required to file a return wherein tax including interest and/or penalty is due and payable, should file it with the Government Treasury by making a payment under rule 45.
(6) A notified oil company should file a copy of its return in Form 225 with the Joint Commissioner of Sales Tax, Nariman Point Dn. within 3 days of filing of the return-cum-chalan in Form 225 with Government Treasury. They should also make an ad-hoc payment of 80% of the tax paid in the previous month within 15 days of the end of month to which return relates.
(7) If no tax, interest or penalty is payable, then return should be filed
(a) to the registering authority (non-resident circle) Mumbai, if the dealer has been registered by such authority, or
(b) to the registering authority having jurisdiction over the principal place of business of the dealer; or
(c) to each of the registering authority where dealer is holding valid certificate of Entitlement under any Package Scheme of Incentives except Power Generation Promotion Policy, 1998.
(d) in any other case, to the registering authority within whose jurisdiction the place or places of business are situated.
5. Sub-rule (3) of rule 18 is substituted by new sub-rule (3) with effect from 1st April 2006. This rule is related to the dealers holding valid certificate of Entitlement under any Package Scheme of Incentives by way of exemption as well as deferment mode.
(1) These dealers should file their initial return in which period the Certificate of Entitlement has been granted as per table shown above from the period beginning with the first day of the month, or first day of the quarter or first day of the six month period, as the case may be, and ending with the date immediately preceding date of effect of the Certificate of Entitlement.
(2) Thereafter such dealers should file quarterly return in Form 224, and the first return after obtaining the certificate of Entitlement should be filed from the date of effect of the said certificate to the end of the quarter. If such dealers have executed any works contract or have transferred the right to use any goods for any purpose or have part of their business under composition, they should file a quarterly return in Form 223 in respect of such activities in addition to the return in Form 224.
(3) Such dealers should file last return for the period beginning with the first day of quarter and ending with the date on which the Certificate of Entitlement ceases to be valid. Next immediate return should be filed for the period commencing on the date immediately succeeding the date on which the said certificate ceases to be valid to the end of the quarter. For the balance period in the year, if any remains, quarterly return should be filed.
(4) Periodicity of the return for the immediately succeeding year should be decided in accordance with rule 17 and for this purpose "tax liability" shall include cumulative quantum of benefit availed of by the dealer.
6. This circular cannot be made use of for legal interpretation of the provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
7. You are requested to bring the contents of this circular to the notice of the members of your association.