In this Trade Circular, various amendments carried out in Maharashtra Value Added Tax Rules, 2005 have been explained.
Now a composition & deemed dealer is required to file Annexure J1 & J2 along with half yearly return and details in Annexure C & D for entire year along with Second & last Half yearly return on or before 30th June of the succeeding year.
All dealers are also required to file Annexure J1 & J2 along with monthly, quarterly or half yearly return.
Dealers not liable for MVAT audit are required to file annual details in annexure C, D, G, H & I on or before 30th June of succeeding year.
Now a dealer who is unable to make quarterly application for declaration forms due to half yearly periodicity of return can apply for change in periodicity of returns to quarterly by email to peridiocity@mahavat.gov.in on or before 15th May of that financial year. Such change shall be final unless changed to monthly. Effective from F.Y. 2015-16.
Now, an option has been given in Registration Form 101 for a proprietor or partner to mention Adhar Card Number (UID).
Dealer having turnover between Rs. 60 lakh and Rs. 1 crore in F.Y. 2013-14 is required to file Annexures J1, J2,C,D,G,H & I for F.Y. 2013-14 along with return for the period ending on 30.9.2014. New Forms 604A & 605 have been prescribed.
SERVICE TAX UPDATE
Chargeability on transaction between joint venture and its members
Circular No. 179/05/2014 – ST dated 24th September, 2014
Vide this circular clarification has been provided with respect to chargeability of service tax on transaction between a joint venture and its members and vice versa post negative list regime of Service Tax with effect from 1st July, 2012 whereby all services are taxable subject to the definition of the service available in section 65B(44) of the Finance Act, 1994 other than the services specified in the Negative List and Mega Exemption notification.
The circular focuses on the issues of service tax implication on transactions in the nature of :
(a) cash calls or capital contributions made by the member to JV and
(b) Administrative services provided by member to JV.
The TRU has clarified that, according to Explanation 3 (a) under the definition of service, an unincorporated association or body of persons and its members are treated as distinct persons and hence taxable services provided by one to the other (i.e,. JV to member or vice versa) would be liable to service tax.
The circular specifically deals with the issue of cash calls / capital contribution made by members to the JV.
The circular clarifies that if cash calls are merely ‘transactions in money’ – they are excluded from the definition of service as per section 65B (44) of the Finance Act, 1994. Whether cash calls are in the nature of consideration for taxable service and not ‘transaction in money’ – would depend on the terms of the JV agreement in each case.
It is also clarified that JV may provide some taxable service in the form of agreeing to do something for direct benefit of the member or for the benefit of the third party on behalf of the member such as granting rights, reserving production capacity or providing an option on future supplies, for which the JV might have received cash calls in the nature of advance payments. Where member of the JV is providing services to the JV in his individual capacity, such as management of cash calls, administrative services, management of project office, etc. and the JV pays such member in cash (through pooled cash calls or otherwise) or in kind (i.e., goods, rights etc.), such services by member to the JV would be liable to service tax.
The TRU has specifically advised its field formations to carefully examine the applicability of service tax with reference to the specific terms / clauses of each JV agreement.
Services in relation to inward remittances from abroad Circular No. 180/06/2014 – ST dated 14th October, 2014
Vide this circular, Circular No.163/14/2012-ST dated 10.7.2012 is superseded clarifying the following issues in levy of service tax on the activities involved in the inward remittances :
(1) No service tax is payable on foreign currency remitted to India from overseas;
(2) Services provided by agent or the representation service provided by an Indian entity/bank to a foreign money transfer service operator (MTSO) in relation to money transfer falls in the category of intermediary service, therefore the same shall be subject to service tax;
(3) Service tax would apply on the services provided by way of currency conversion by a bank/entity located in India in the taxable territory to the recipient of remittance in India;
(4) Service tax is payable on commission received by sub-agents from Indian bank/entity;
(5) Service tax is payable on the amount charged separately, if any, by the Indian bank/entity/agent/sub-agent from the person who receives remittance in the taxable territory, for the service provided by such Indian bank/entity/ agent/sub-agent.
