Salient features of amendments explained — Trade Circular No. 17T of 2010, dated 17-5-2010.

Part B : Indirect Taxes

38 Salient features of amendments explained — Trade Circular
No. 17T of 2010, dated 17-5-2010.

This amendment will enable audit of the esta-blishment of an
employer under the PT Act so far as it relates to the disbursement of salary,
wages, etc. in line with the MVAT Act, 2002. It is decided to extend procedure
of electronic return and electronic payment to the P.T. Act also. A separate
Trade Circular for operational modalities related to audit, electronic filing
and electronic payment will be issued shortly.

(ii) Amendment to Maharashtra Tax on Luxuries Act, 1987 w.e.f.
1st May, 2010 :

If charge for luxury per day per accommodation is less than
Rs.750, then luxury tax would be Nil, if such luxury is between Rs.751 to
Rs.1,200, luxury tax would be 4% and for luxury above Rs.1,200, luxury tax would
be at 10%.

It is decided to extend procedure of electronic return and
electronic payment to Luxury Tax also.

A separate Trade Circular for operational modalities related
to electronic filing and electronic payment will be issued shortly.

(i) If there is change in nature of business like
manufacturing to trading or import or vice versa, or opened a new bank account
or closed existing account, such information shall be furnished within 60 days
from the date of occurrence of such changes.

(ii) Dealer required to file revised return due to findings
by MVAT Audit within 30 days of submission of MVAT Audit report.

(iii) Minimum penalty for non-issuance of tax invoice or cash
memorandum increased to Rs.1,000.

(iv) Failure to comply with the notice in respect of any
proceedings under the Act increased from Rs.1,000 to Rs.5,000.

(v) Increase in time limit for levy of penalty from 5 years
to 8 years.

(vi) For Developers a Composition Scheme — This scheme will
be optional and apply to all agreements entered into from 1st April, 2010
onwards. A Notification will be issued shortly.

(vii) In respect of refund on application in Form-501,
amendments are made for reduction of refund if declarations or certificates as
required under the Central Sales Tax Act, 1956 are not received or tax has not
been paid on earlier sales by the vendor.

(viii) Existing turnover limit of Rs.40 lakh increased to
Rs.60 lakh for applicability of MVAT Audit from financial year 2010-11.

(ix) PSI holding unit would be required to get his accounts
audited irrespective of turnover.

(x) Order levying interest u/s.30(2) or u/s.30(4),
Intimations issued u/s.63(7) and Order passed by the Joint Commissioner U/ss.(1)
and (2) of S. 35 are now non-appealable.

(xi) Now it is mandatory for the selling dealer to state TIN
of the purchasing dealer on the tax invoice, failing which such invoice will not
be treated as tax invoice and purchasing dealer will not be entitled to claim
set-off in respect of that invoice.

(xii) Certain notifications and Schedule entries amended.

(xiii) The amended tax rates shall be effective from 1st May
2010