C.V.O. Chartered & Cost Accountants' Association

Legal Updates
Sales Tax Update

Compiled by : Shri Bharat K. Gosar (C.A.)
Page 2

Amendments to notification u/s. 8(5) of Central Sales Tax Act, 1956

Sr. No.	Notification No.	Description	Rate of CST	Date of effect	Comments
1.	No. CST. 2002/CR-30/ Taxation-2 dt. 1st May 2002	Motor vehicles having engine capacity of 950 C.C. onwards sold in the course of Inter-State trade or commerce	2%	1st May, 2002	The earlier notification dt. 1.11.1994 is superseded by this new notification. The claimant dealer is required to produce C-Form
2.	No. CST 2002/ CR-30/Taxation-2 dt.1st May 2002	Packing material and packing accessories sold to trader- exporter in the course of inter-State trade and commerce.	NIL	1st May, 2002	Packing material and packing accessories shall be used for the purpose of packing of goods to be exported outside the territory of India and goods packed are purchasesed for the purpose of complying with the agreement or order for, or in relation to such export. The selling dealer is required to produce 'C' Form and a certificate in form appended to this notification is also to be obtained from purchasing dealer.

Amendments to the Profession Tax Act

Sr. No.	Section	Contravention	Penalty upto 30.04.02	Penalty on or after 1.5.02	Comments
1.	5(5)	1. Late application for Enrolment. 2. Late application for registration	Not exceeding Rs.5/- per day. Not exceeding Rs.20/-per day.	Rs. 2/- per day Rs. 5/- per day	Discretionary power of Assessing Officer is removed.
2.	5(6)	Submission of false information	Not exceeding Rs.1000/-	300% of Tax payable	- DO -
3.	6(3)	Failure to file the return in time	Not exceeding Rs.5/- per day.	Rs. 300/- per return	- DO -
4.	10	Late payment of tax	Not exceeding 50% of tax due	10% of tax due	- DO -

Amendments to schedule entry 16 : New entry 16(iv) is inserted under which Co-operative Societies registered or deemed to be registered under the Maharashtra Co-op. Societies Act, 1960 & engaged in any profession, trade or callings other than those societies specified in 16 (i), (ii) & (iii) are covered and tax @ of Rs. 500/- per annum is payable.

Section 11A is inserted to empower the Profession Tax Authorities to recover the Profession Tax dues as arrears of land revenue.

Section 12(7) to (11) are inserted to empower the Commissioner to appoint any person as his agent for survey and recovery of the Profession Tax.

Amendments to the Luxury Tax Act

By amending section 3 with effect from 1st May, 2002, Luxury Tax is payable by the hotels on 'per room per day' basis instead of per person per day basis. It has also been provided that, where the charges are levied otherwise than on daily basis, then the charges for determining the tax liability shall be computed proportionately for a day per residential accommodation, based on the total period of such accommodation for which the charges are made.

With effect from 1st May, 2002, exemption is granted to Zarda costing upto Rs.200/- per k.g. by amending the definition under section 2.

New entry 16 is added on 3rd May 2002, which provides that the rate of tax on the turnover of receipts where the charges for luxuries provided in a hotel exceed Rupees 1200 per day per residential accommodation, shall be at 6 per cent instead of 10 per cent for the period from 1st May, 2002 to 30th April, 2003.

Amendments to the Works Contract Act

Sr. No.1.	Section	Comments	Date of effect
1.	6A(7)	The amount payable by way of composition in respect of any type of contracts awarded: i) On or after 1st April, 2000 to 31st March 2001 shall be equal to 3% of total contract value and ii) On or after 1st April 2001 shall be equal to 4% of the total contract value.	1st April 2000 1st April 2000
2.	6A(8)	Sub-section (8) is substituted to provide for an option to a manufacture-cum works contractor of ready-mix concrete to pay the tax on ready mix concrete, by way of composition equal to fifteen percent of the total contract value of the works contract, after deducting from such value, the turnover of purchases of corresponding goods from:- i) a dealer registered under the Bombay Sales Tax Act, 1959 and whose registration certificate is in force on the date of such purchases; or ii) a person not registered under the Bombay Sales Tax Act, 1959, but the tax under the said Act has been paid on the goods so purchased.	1st April 2000

The above amendments are carried out through the following notifications:

1. Notification No. STA 2002 / CR - 24/Taxation - 2 dated 30th March 2002.
2. Notification No. CST 2002 / CR - 40/Taxation - 2 dated 30th March 2002.
3. Maharashtra Act No. XVI of 2002 dated 15th April 2002.
4. Notification No. STA - 2002 / CR - 24/ Taxation - 2 dated 1st May 2002.
5. Notification No. STA - 2002 / CR - 24A/ Taxation - 2 dated 1st May 2002.
6. Notification No. CST - 2002/ CR - 30/ Taxation - 2 dated 1st May 2002.
7. Notification No. CST - 2002/ CR - 30A/ Taxation - 2 dated 1st May 2002.
8. Notification No. LTA - 2002/ CR - 52/ Taxation - 2 dated 3rd May 2002.
9. Maharashtra Act No. XX of 2002 dated 4th May 2002.
10. Notification No. STA - 11.02 / CR - 99/ Taxation - 1 dated 9th May 2002.

Amendments to Central Sales Tax Act, 1956

The Bill proposing amendments to Central Sales Tax Act, 1956 was introduced in Lok Sabha on 28th February 2002 and is passed by the Parliament and got the assent by the President of India on 11th May 2002. It has become Act No. 74 of 1956 and is effective from 11th May 2002. The readers are requested to refer the last bi-monthly copy of the News & Views in which the amendments are discussed in detail.

Trade circular issued by the Commissioner of sales tax, Maharashtra

1. No. 9T of 2002 dated 18th April, 2002: By this Circular the Commissioner cancelled all the instalments order issued by the departmental authorities in respect of dealers in liquor. Further, he issued instructions to the departmental authorities to recover the dues immediately and further instructed not to grant any instalments to the liquor dealers.

2. No. 10T of 2002 dated 23rd April, 2002: In this Circular, the Commissioner has requested the dealers to inform the Permanent Account Number under Income Tax Act to their respective Assessing Officers of Sales Tax Department.

3. No. 11T of 2002 dated 4th May, 2002 : In this Circular the Commissioner has discussed the amendments to the B.S.T. Act and other allied acts carried out vide Maharashtra Act No. XX of 2002.

4. No. 12T of 2002 dated 8th May, 2002 : In this Circular the Commissioner has discussed the various notifications issued u/s. 41 of B.S.T. Act and u/s. 8(5) of C.S.T. Act.

5. No. 13T of 2002 dated 14th May, 2002 : In this Circular the Commissioner has discussed the amendments in the C.S.T. Act about the establishment of mechanism to settle inter-state disputes under the Central Sales Tax Act, 1956.

6. No. 14T of 2002 dated 17th May, 2002 : In this Circular, amendments to Maharashtra Tax on Luxuries Act, 1987 are discussed.

C.V.O. CA's News & Views

Vol.5 No. 5 May - June 2002