Maharashtra Value Added Tax Act (2005) : Chapter I : Preliminary
CHAPTER I PRELIMINARY
1. (1) This Act may be called the Maharashtra Value Added Tax Act,
(Levy and Amendment) Act, 2005 .
(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force with effect from the 1st of April, 2005.
2. In this Act, unless the context otherwise requires,—
(1) “agriculture“, with all its grammatical variations and cognate
expressions, includes floriculture, horticulture, the raising of crops,
grass or garden produce, and also grazing; but does not include
dairy farming, poultry farming, stock breeding, the mere cutting of
wood or grass, gathering of fruit, raising of man-made forests or
rearing of seedlings or plants;
Explanation. —For the purposes of this clause and clause (4), the expression “forest” means the forest to which the Indian Forest Act, 1927, in its application to the State of Maharashtra, applies;
(2) “agriculturist” means a person who cultivates land personally,
for the purpose of agriculture;
(3) “appointed day” means the 1st of April ,2005.
(4) “business” includes, —
(a) any service;
(b) any trade, commerce or manufacture;
© any adventure or concern in the nature of’ service,
trade, commerce or manufacture;
whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with a motive to make gain or profit and whether or not any gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern.
Explanation. For the purpose of this clause,—
(i) the activity of raising of man-made forest or rearing of seedlings or plants shall be deemed to be business;
(ii) any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be a transaction comprised in business;
(iii) sale or purchase of any goods, the price of which would be credited or, as the case may be, debited to the profit and loss account of the business under the double entry system of accounting shall be deemed to be transactions comprised in business;
(iv) any transaction in connection with the commencement or closure of business shall be deemed to be a transaction comprised in business;
(5) “capital asset” shall have the same meaning as assigned to it,
from time to time, in the Income Tax Act, 1961, but the said
expression shall not include jewelry held for personal use or property
not connected with the business;
(6) “Commissioner” means the person appointed to be the
Commissioner of Sales Tax for the purposes of this Act;
(7) “to cultivate personally“, with its grammatical variations and
cognate expressions, means to carry on any agricultural operation
on one’s own account,—
(a) by one’s own labour, or
(b) by the labour of one’s own family, or
© by servants on wages payable in cash or kind (but not
in crop share), or by hired labour under one’s personal
supervision or the personal supervision of any member
of one’s family.
Explanation I. —A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour.
Explanation II. —In the case of a Hindu Undivided Family, land shall be deemed to be cultivated personally, if it is cultivated by any member of such family;
(8) “dealer” means any person who for the purposes of or consequential to his engagement in or, in connection with or incidental to or in the course of, his business buys or sells, goods in the State whether for commission, remuneration or otherwise and includes,-
(a) a factor, broker, commission agent, del-credere agent or
any other mercantile agent, by whatever name called, who
for the purposes of or consequential to his engagement in
or in connection with or incidental to or in the course of
the business, buys or sells any goods on behalf of any
principal or principals whether disclosed or not;
(b) an auctioneer who sells or auctions goods whether acting
as an agent or otherwise or, who organizes the sale of
goods or conducts the auction of goods whether or not he
has the authority to sell the goods belonging to any
principal whether disclosed or not and whether the offer of
the intending purchaser is accepted by him or by the
principal or a nominee of the principal;
© a non resident dealer or as the case may be, an agent,
residing in the State of a non-resident dealer, who buys or
sells goods in the State for the purposes of or
consequential to his engagement in or in connection with
or incidental to or in the course of, the business.
(d) any society, club or other association of persons which
buys goods from, or sells goods to, its members;
Explanation- For the purposes of this clause, each of the following persons, bodies and entities who sell any goods whether by auction or otherwise, directly or through an agent for cash, or for deferred payment, or for any other valuable consideration, shall, notwithstanding anything contained in clause (4) or any other provision of this Act,
be deemed to be a dealer, namely:-
(i) Customs Department of the Government of India administering the Customs Act, 1962;
(ii) Departments of Union Government and any Department of any State Government;
(iii) Incorporated or unincorporated societies, clubs or other associations of persons;
(iv) Insurance and Financial Corporations, institutions or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934;
(v) Local authorities;
(vi) Maharashtra State Road Transport Corporation
constituted under the Road Transport
Corporation Act, 1950;
(vii) Port Trusts;
(viii) Public Charitable Trusts registered under the Bombay Public Trusts Act, 1950;
(ix) Railway Administration as defined under the Indian Railways Act, 1989 and Konkan Railway Corporation Limited;
(x) Shipping and construction companies, air transport companies, airlines and advertising agencies;
(xi) any other corporation, company, body or authority owned or constituted by, or subject to administrative control, of the Central Government, any State Government or any local authority:
Exception I. —An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally, shall not be deemed to be a dealer within the meaning of this clause.
Exception II. —An educational institution carrying on the activity of manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be deemed to be a dealer within the meaning of this clause.
Exception III. —A transporter holding permit for transport vehicles (including cranes) granted under the Motor Vehicles Act, 1988, which are used or
adopted to be used for hire or reward shall not be deemed to be a dealer within the meaning of this clause in respect of sale or purchase of such transport vehicles or parts. components or accessories thereof.
(9) “declared goods” means declared goods as defined, from time to
time, in the Central Sales Tax Act, 1956;
(10) “document” includes electronic record as defined in the
Information Technology Act, 2002;
(11) “earlier law” means any of the following laws, that is to say,—
(i) The Bombay Sales of Motor Spirit Taxation Act, 1958,
(ii) The Bombay Sales Tax Act, 1959,
(ni)
(iv) The Maharashtra Sales Tax on the Transfer of the Right to use any goods for any Purpose Act, 1985 and
(v) The Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989,
each of them as amended, from time to time, and includes enactments which have validated anything done or omitted to be done under any of the above-mentioned laws;
(12) “goods” means every kind of moveable property not being
newspapers, actionable claims, money, stocks, shares, securities or
lottery tickets and includes live stocks, growing crop, grass and trees
and plants including the produce thereof including property in such
goods attached to or forming part of the land which are agreed to be
severed before sale or under the contract of sale;
(13) “importer” means a dealer who brings any goods into the
State or to whom any goods are dispatched from any place outside
the State;
(14) “legal representative” shall have the meaning assigned to it in
clause (11) of section 2 of the Code of Civil Procedure, 1908;
(15) “manufacture“, with all its grammatical variations and
cognate expressions includes producing, making, extracting,
altering, ornamenting, finishing or otherwise processing, treating or
adapting any goods;
(16) “non-resident dealer” means a dealer who effects purchases or
sales of any goods in the State, but who has no fixed or regular place
of business or residence in the State;
(17) “person” includes an individual, any State Government, the
Central Government, any company or society or club or association
or body of individuals whether incorporated or not, and also a Hindu
Undivided Family, a firm and a local authority and every artificial
juridical person not falling within any of the preceding descriptions;
(18) “place of business” includes a warehouse, godown or other
place where a dealer stores his goods and any place where the dealer
keeps his books of accounts;
(19) “prescribed” means prescribed by the rules or by any
notification;
(20) “purchase price” means the amount of valuable consideration
paid or payable by a person for any purchase made including any
sum charged for anything done by the seller in respect of the goods
at the time of or before delivery thereof, other than the cost of
insurance for transit or of installation, when such cost is separately
charged;
Explanation I. —The amount of duties levied or leviable on the goods under the Central Excise Act, 1944, or the Customs Act, 1962 or the Bombay Prohibition Act, 1949 shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.
Explanation II. —Purchase price shall not include tax paid or payable by a person in respect of such purchase.
Explanation III. —Purchase price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods;
Explanation IV- Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, purchase price shall be taken to mean, the total consideration for the works contract and for the purpose of levy of tax, purchase price shall be taken to mean, the price as may be determined in accordance with the rules, by making such deduction from the total consideration for the works contract as may be prescribed.
(21) “registered dealer” means a dealer registered under this Act:
(22) “resale” means a sale of purchased goods—
(i) in the same form in which they were purchased, or
(ii) without doing anything to them which amounts to, or results in, a manufacture,
and the word “resell” shall be construed accordingly;
(23) “rules” means the rules made under this Act;
(24) “sale” means a sale of goods made within the State for cash or
deferred payment or other valuable consideration hut does not
include a mortgage, hypothecation, charge or pledge; and the words
“sell", “buy” and “purchase", with all their grammatical variations
and cognate expressions, shall be construed accordingly;
Explanation,—For the purposes of this clause,—
(a) a sale within the State includes a sale determined to be
inside the State in accordance with the principles
formulated in section 4 of the Central Sales Tax Act, 1956;
(b) (i) the transfer of property in any goods, otherwise than in
pursuance of a contract, for cash, deferred payment or other valuable consideration;
(ii) the transfer of property in goods (whether as goods or in some other form) involved in the execution of’ a works contract;
(iii) a delivery of goods on hire-purchase or any system of payment by instalments;
(iv) the transfer of the right to use any goods or any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
(v) the supply of goods by any association or body of persons incorporated or not, to a member thereof or other valuable consideration;
(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is made or given for cash, deferred payment or other valuable consideration:
(25) “sale price” means the amount of valuable consideration paid
or payable to a dealer for any sale made including any sum charged
for anything done by the seller in respect of the goods at the time of
or before delivery thereof, other than the cost of insurance for transit
or of installation, when such cost is separately charged.
Explanation 1. —The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.
Explanation II. — Sale price shall not include tax paid or payable to a seller in respect of such sale.
Explanation III. — Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;
Explanation IV: The amount of valuable consideration paid or payable of a dealer for the sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drug.
(26) ‘Schedule” means the Schedule appended to this Act;
(27) “service” means any service as may be notified by the State
Government, from time to time, in the Official Gazette;
(28) “the State” means the State of Maharashtra;
(29) “tax” means a sales tax, leviable or as the case may be,
payable, under this Act and includes any amount payable by way of
composition;
(30) “tax-free goods” means goods against which the rate of sales
tax is shown to be NIL in the Schedule and ‘taxable goods’ mans
goods other than tax-free goods;
(31) “Tribunal” means the Maharashtra Sales Tax Tribunal
constituted under section 11;
(32) “turnover of purchases” means the aggregate of the amounts
of purchase price paid and payable by a dealer in respect of any
purchase of goods made by him during a given period, after
deducting the amount of,—
(a) purchase price, if any, refunded to the dealer by the seller in
respect of any goods purchased from the seller and returned to
him within the prescribed period; and
(b) deposit, it any, refunded in the prescribed period to the dealer
by the seller, in respect of any goods purchased by the dealer.
Explanation I. —In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of purchase price paid or payable during a given period shall mean the amounts paid or, as the case may be, due and payable during the said Period.
Explanation II -
(33) “turnover of sales” means the aggregate of the amounts of sale
price received and receivable by a dealer in respect of any sale of
goods made during a given period after deducting the amount of —
(a) sale price, if any, refunded by the seller, to a purchaser, in
respect of any goods purchased and returned by the
purchaser within the prescribed period; and
(b) deposit, if any, refunded in the prescribed period, by the
seller to a purchaser in respect of any goods sold by the
dealer.
Explanation I. —In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of sale price received or receivable during a given period shall mean the amounts received or as the case may be, due and payable during the said period;
Explanation II-
Explanation III. —Where the registration certificate is cancelled, the amounts of sale price in respect of sales made before the date of the cancellation order, received or receivable after such date, shall be included in the turnover of sales during a given period;
(34) “vehicle” means a goods carriage as defined in the Motor
Vehicles Act, 1988; and
(35) “year” means the financial year.