8th Floor, Vikrikar Bhavan,
Mazgaon, Mumbai-400010.
To
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No. VAT/AMD/2014/1B/ADM-8
Sub : Amendment to Maharashtra Value Added Tax Rules, 2005.
Ref. : 1. Notification No.VAT-1514/CR-29/Taxation-1 dated 23.07.2014.
2. Notification No.VAT-1514/CR-62/Taxation-1 dated 13.08.2014.
3. Trade Circular No. 4T of 2014 dated 28.01.2014.
4. Trade Circular No. 9T of 2014 dated 25.03.2014.
5. Trade Circular No. 14T of 2014 dated 06.08.2014.
In order to give effect to the Additional Budget 2014-15 proposals and pursuant to the enactment of the Maharashtra Act No. XXVII of 2014, certain amendments in the Maharashtra Value Added Tax Rules, 2005 have been carried out by the Government vide Notification No.VAT-1514/CR-62/Taxation-1 dated 13.08.2014. Government also issued Notification No.VAT-1514/CR-29/Taxation-1 dated 23rd July 2014 to provide for mandatory filing of annexures of sales and purchases.
The salient features of the amendments are briefly explained below: -
I. Notification No.VAT-1514/CR-29/Taxation-1 dated 23.07.2014
1. Amendment to sub-rule (4) of rule 17, second proviso to clause (a) is substituted:-
Prior to the amendment as per the provisions of the second proviso to clause (a) to sub-rule (4) of rule 17, the retailer who has opted for the Composition and the deemed dealer were required to furnish the details of sales and purchases for the entire year in Annexure- J1, J2 and other details in Annexure-C and D for the entire year alongwith the last return of the year.
Now by virtue of this amendment, the retailer opting for the Composition and the deemed dealer will have to furnish the details of sales and purchases for the period covered by return in Annexure J1, J2 alongwith the filing of each six monthly return. The other details for the entire year in Annexure-C and D are to be filed alongwith the second and last six monthly return, on or before the 30th June of the succeeding year with effect from the financial year 2014-15.
(1) First proviso to clause (d) is substituted and two sub-clauses to the proviso are provided:-
Prior to the amendment, the first proviso related to the dealer who was not required to file Form 704. These dealers were required to file the Annexures J1, J2, C, D, G, H and I alongwith the last monthly, quarterly or six monthly return within ninety days from the end of that financial year.
By virtue of this amendment, the aforesaid proviso is substituted with two sub-clauses (i) and (ii).
(i) The first sub-clause (i) is in respect of the dealer who is required to file an Audit Report in Form 704. This dealer will now be required to furnish the details of sales and purchases for the period covered by return in Annexure- J1, J2 alongwith every monthly, quarterly or six monthly return. It is clarified that these dealers shall continue to file Annexures- J1 and J2 for entire year alongwith Form 704 Audit Report.
The dealers who have not filed the Annexure-J1, J2 alongwith their monthly returns for the month April, May, June and July t 2014 or alongwith their quarterly return for the period April- June 2014 shall File the Annexures alongwith the return for the period ending on the 30 September 2014.
(ii) The new sub-clause (ii) is in respect of the dealer who is not required to file an Audit Report as provided under section 61. This dealer will also be required to furnish the details of sales and purchases in Annexure- J1, J2 alongwith every monthly, quarterly or six-monthly return for the period covered by return. The other details in Annexure-C,D,G,H and I for the entire year will be filed alongwith the last monthly, quarterly or six monthly return on or before the 30th June of the succeeding year with effect from the financial year 2014-15.
The dealers who have not filed the Annexure-Jl, J2 alongwith their monthly returns for the month April, May, June and July of the year 2014 or alongwith their quarterly return for the period April 2014 to June 2014 shall file the Annexures alongwith the return for the period ending on the 30 September 2014.
(2) New proviso is added after sub-clause (iii) to clause (e):-
It may be recalled that in the Trade Circular No. 4 T of 2014 dated 28.01.2014, the applicants with six monthly periodicity who were unable to make quarterly applications for the CST declarations were given the option of changing their periodicity to quarterly.
This provision is now made statutory by adding a new proviso is added after sub-clause (iii) to clause (e). By virtue of this amendment periodicity@mahavat.gov.in on or before 15th May of that Financial year. Such changed periodicity shall be final unless it is changed to monthly as per the provisions of clause (c) to sub-rule (4). This provision would be applicable from the financial year 2015-16.
2. Amendment to Form 101:-
By virtue of this amendment the applicant in case of proprietor or partner (authorised signatory) will now be required to furnish his Aadhaar Card (UID) Number in the application form for registration. The said provision is not compulsory but if Aadhaar Card (UID) Number is available then the dealer may provide it as supplementary document for proof of residence.
II. Notification No.VAT-1514/CR 62/Taxatlon-1 dated 13.08.2014
1. Amendment to first proviso of clause (d) of Rule 17(4):-
(i) Due to the amendment to section 61, the turnover limit has been raised to Rs.1 crore from Rs. 60 lakh for filing of Audit Report. As a result the dealer whose turnover for the financial year 2013-14 is less than Rs. 1 crore but more than Rs.60 lakh are not required to file audit report in form 704. They are also not required to file the annexures with return ending March 2014. Now it is provided that these dealers shall file annexure alongwith the return for the period ending on the 30th September 2014. Sub-clause (iii) has been added to the first proviso of clause (d) of rule 17(4).
(ii) By way of this new sub-clause (iii) such dealer who is not required to file an Audit Report for the financial year 2013-14 will furnish the details of sales and purchases in Annexure- J1, J2 and other details in Annexure-C,D,G,H and I alongwith return for the period ending on the 30th September 2014.
2. Deletion of rule 22:
(i) Sub-section (9) of section 23 has been deleted with effect from 23.06.2014. Rule 22 provided that the application for direction under sub-section (9) of section 23 was to be made in Form 305. This rule has now become redundant due to deletion of sub-section (9) of section 23. Hence rule 22 is deleted.
(ii) As a result no directions can be issued after the date of amendment i.e. 23.06.2014 even if the application seeking clarification is made prior to amendment.
3. Amendment to rule 67:
Rule 67 provides for the intimation under sub-section (7) of section 63 in Form 604. A new "Table-2" is provided whereby the findings of Issue Based Audit will be communicated.
Further by way of amendment to rule 67 two more Forms 604A and 605 are added to this rule.
(i) Form 604A: By analyzing the information stored in electronic form available in e-Retums, Audit Report e-704 and other documents available in electronic format with the Sales Tax Department, Computerised Desk Audit would be carried out and the results would be intimated to the dealer for compliance. The intimation will be in Form 604A if the findings of audit in relation to specific issues are based upon such analysis of electronic data available with the Sales Tax Department i.e. Computerised Desk Audit (CDA).
(ii) Form 605: The findings of the Issue Based Audit and Comprehensive Audit are intimated in Form 604 and the findings of Computerised Desk Audit are intimated in Form 604A. If the findings are accepted by dealer and return or revised return is filed thereafter then the closure of audit shall be communicated to the concerned dealer. The closure intimation will be in Form 605.
It may be noted that by virtue of amendment in sub-section (7) of Section 63 of MVAT Act, 2002, the intimation in Form 604, 604A and 605 is now mandatory. It shall be communicated in all the above cases.
(Dr. Nitin Kareer)
Commissioner of Sales Tax,
Maharashtra State, Mumbai