Maharashtra Value Added Tax Act (2005) : Chapter II : Incidence And Levy Of Tax
CHAPTER II INCIDENCE AND LEVY OF TAX
3. (1) Every dealer, who, immediately before the appointed day, holds a valid or effective certificate of registration or license under any of the earlier laws or, as the case may be, who is liable to pay tax under any of the earlier laws, in the year ending immediately before the
appointed day shall, if his turnover of sales or purchases has, in the said year under any of such earlier laws, exceeded rupees five lakh, or, as the case may be, if he is an importer in the said year and his turnover of sales or purchases in the said year had exceeded rupees one lakh, shall be liable to pay tax, with effect from the appointed day, in accordance with the provisions of this Act, till his certificate or licence is duly cancelled under this Act.
Explanation.—For the purposes of this sub-section, the expressions “turnover of sales", “turnover of purchases” and “importer” shall have the respective meanings assigned to them under the relevant earlier laws.
(2) A dealer to whom sub-section (1) does not apply and whose turnover,
of all sales made, during the year commencing on the appointed day
or any year subsequent thereto, first exceeds the relevant limit,
specified in sub-section (4), shall, until such liability ceases under
sub-section (3), be liable to pay tax under this Act with effect from
the 1st day of April of the said respective year:
Provided that, a dealer shall not be liable to pay tax in respect of such sales as take place during the period commencing on the 1st day of April of the said respective year upto the time when his
turnover of sales ( ), as computed from the 1st day of April of the
said respective year, does not exceed the relevant limit applicable to him under sub-section (4).
(3) Every dealer who has become liable to pay tax under this Act, shall
continue to be so liable until his registration is duly cancelled; and
upon such cancellation his liability to pay tax, other than tax
already levied or leviable, shall remain ceased until his turnover of
sales (…) again, first exceeds the relevant limit specified in sub¬
section (4) or, as the case may be, until he becomes liable to pay tax
under sub-section (7), (8) or (9).
(4) For the purposes of this section, the limits of turnover shall be as
follows
(a) Limit of turnover Rs. in the case of a dealer, who is an
1,00,000.— importer, and the value of taxable
goods sold or purchased by him during the year is not less than Rs. 10,000/-.
(b) Limit of turnover Rs. in any other case, where the value of
5,00,000.— taxable goods sold or purchased by
him during the year is not less than
Rs. 10,000.
(5) For the purpose of calculating the limit of turnover for liability to
tax,—
(a) except as otherwise expressly provided, the turnover of all sales
and purchases shall be taken, whether such sales or purchases
are of taxable goods or not;
(b) the turnover shall include all sales(…)made by the dealer on his
own account, and also on behalf of his principals whether
disclosed or not;
© in the case of an auctioneer, in addition to the turnover, if any,
referred to in clauses (a) and (b), the turnover shall also include
the price of the goods auctioned by him for his principal, whether
the offer of the intending purchaser is accepted by him or by the
principal or a nominee of the principal, if the price of such goods
is received by him on behalf of his principal;
(d) in the case of an agent of a non-resident dealer, in addition to the
turnover, if any, referred to in clause (a), (b) or ©, the turnover
shall also include the sales (…) of the non-resident dealer effected
in the State.
(6) Notwithstanding anything contained in any contract or any law for
the time being in force, but subject to the provisions of this Act, any
person covered by sub-clauses (a), (b), or © of clause (8) of section 2
shall be liable to pay tax under this Act, whether or not the principal
is a dealer and whether or not such principal is liable to pay tax
under this Act and whether or not the principals are disclosed.
(7) Any person who at any time after the appointed day becomes liable
to pay tax under the Central Sales Tax Act, 1956, but who is not
liable to pay tax under the other provisions of this section shall be
liable, to pay tax on the sales effected by him on and from the day on
which he becomes so liable to pay tax under the Central Sales Tax
Act. 1956 and accordingly nothing contained in the proviso to sub¬
section (2) shall apply to him in any year.
(8) Where a dealer liable to pay tax under this Act is succeeded in the
business by any person in the manner described in clause (a) of sub¬
section (1) or sub-section (4) of section 44, then such person shall,
notwithstanding anything contained in this section, be liable to pay
tax on the sales of goods effected by him on and after the date of
such succession and accordingly nothing contained in the proviso to
sub-section (2) shall apply to him in any year.
(9) Any person who is not liable to pay tax under the foregoing
provisions of this section, but has been voluntarily registered under the provisions of this Act, shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.”
4. Subject to the provisions of this Act and rules, there shall be paid by
every dealer or, as the case may be, every person, who is liable to pay tax
under this Act, the tax or taxes leviable in accordance with the provisions
of this Act and rules.
5. Subject to the other provisions of this Act, and the conditions or
exceptions, if any, set out against each of the goods specified in column (3)
of Schedule A, no tax shall be payable on the sales of any goods specified in
column (2) of that schedule.
6. There shall be levied a sales tax on the turnover of sales of goods
specified in column (2) in the schedules B, C, D or, as the case may be, E
at the rates set out against each of them in column (3) of the respective
Schedule.
7. Where any goods are sold and such goods are packed in any
material, the tax shall be leviable under section 6 on the sales of such
packing material, whether such materials are separately charged for or not,
at the same rate of tax, if any, at which tax is payable on the sales of the
goods so packed.
8. (1) Nothing in this Act or the rules or the notifications shall be
deemed to impose or authorise the imposition of a tax or deduction of tax
at source on any sale or purchase of any goods, where such sale or
purchase takes place,—
(a) (i) outside the State ; or
(ii) in the course of the import of the goods into the territory of India, or the export of the goods out of such territory ; or
(b) in the course of inter-State trade or commerce, and the
provisions of this Act and the said rules and notifications
shall be read and construed accordingly.
Explanation. —For the purpose of this section, whether a sale or purchase takes place- outside the State, or in the course of the import of the goods into the territory of India or export of
the goods out of such territory, or in the course of inter-State trade or commerce, shall be determined in accordance with the principles specified in sections 3. 4 and 5 of the Central Sales Tax Act, 1956.
(2) In accordance with the notification issued by the Central Government in exercise of its powers under section 3 of the Foreign Air Craft (Exemption from Taxes and Duties on Fuel) Act, 2002, no tax shall be levied on the sales of fuel and lubricants which are filled into receptacle forming part of any aircraft registered in a country other than India, if—
(a) the said country is a party to the Convention on
International and Civil Aviation, 1944; and
(b) the said country has entered into in Air Services agreement
with India; and
© the aircraft is operating on a schedule or non-scheduled
service to or from India.
(3) The State Government may by general or special order published in the Official Gazette in this behalf, and subject to such conditions and restrictions as may be specified in the said order, exempt from payment of tax any class or classes of sales of goods made by any unit in the Special Economic Zone, a developer of the Special Economic Zone, any hundred percent export oriented unit or any unit in the Software Technology Park or any unit in the Electronic Hardware Technology Park.
Explanation.– For the purposes of this sub-section, —
(a) “a unit in the Special Economic Zone” means a unit,-
(i) situated in a zone which the Central Government or, as
the case may be the State Government, and
(ii) which has been certified in this behalf by the
Commissioner.
(b) “a unit in the Software Technology Park” means a unit,-
(i) set up in accordance with the Software Technology
Park Scheme notified by the Government of India in the Ministry of Commerce and Industry , and
(ii) which has been certified in this behalf by the
Commissioner.
© “a unit in the Electronic Hardware Technology Park” means a
unit,-
(i) set up in accordance with the Electronic Hardware
Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry, and
(ii) which has been certified in this behalf by the
Commissioner.
(d) “a hundred per cent, export oriented unit” means a unit,-
(i) which has been approved as a hundred per cent. export
oriented unit by the Board appointed in this behalf by the
Central Government in exercise of the power conferred by
section 14 of the Industries (Development and Regulation)
Act, 195 1 and the rules made under that Act, and
(ii) which has been certified in this behalf by the
Commissioner.”
(4) The State Government may by general or special order
published in the Official Gazette, on this behalf and subject to such conditions and restrictions as may be specified in the order, provide for exemption from payment of the whole of tax in respect of any class or classes of sales of goods effected by a unit holding a Certificate of Entitlement as ,defined under section 88, to whom incentives are granted under any Package Scheme of Incentives, by way of exemption from payment of tax.
9. (1) The State Government may, from time to time, by notification in the Official Gazette,-
(a) amend the Schedule by adding or modifying or deleting any entry
therein and thereupon the Schedule shall stand amended accordingly
for the purpose of levy of tax;
(b) provide for reducing or enhancing the rates of tax or for specifying
the rates of tax where NIL rates are specified, and thereupon the
Schedule shall stand amended for the purposes of this Act:
Provided further that, no notification which provides for enhancement of rate of tax shall be issued after the expiry of the period of two years from the appointed day and not more than one such notification shall be issued within such period.
(2) The provisions contained in sub section (6) of section 83 regarding rules made by the State Government shall apply mutatis mutandis to any notification issued under sub-section (1) as they apply to the rules made by the State Government.