ICFA ( Accounts & Taxation )

[Indian-CA] VAT Notification No.VAT-1511/CR-57/Taxation-l - Taxation of Liquor



FINANCE DEPARTMENT

Mantralaya, Mumbai 400 032, dated the 30th April 2011.


NOTIFICATION


MAHARASHTRA VALUE ADDES TAX ACT, 2002.


No.VAT-1511/CR-57/Taxation-l - In exercise of the powers conferred by sub-section (5) of section 41 of the Maharashtra Value Added Tax Act, 2002 (Mah IX of 2005), the Government of Maharashtra hereby subject to the conditions specified in column (5) against each class of dealers specified in column (2) of Schedule I and Schedule II appended hereto, provides for exemption of tax payable by the said dealers on their sales of liquor covered by entry 1, 2 and 3 of Schedule D appended to the Maharashtra Value Added Tax Act, 2002, to the extent specified in column (4) of the Schedules I and II against such sales specified in column (3) of the said Schedules.


Schedule I provides for exemption in respect of sales of aforesaid goods where such goods are purchased on or after the 1st May 2011. Schedule II provides for exemption in respect of sales of aforesaid goods which were purchased on or before the 30th April 2011.


SCHEDULE-I


Sr. No.

Class or classes of dealers

Class or classes of sales


Exemption


Conditions


(1)

(2)

(3)


(4)

(5)


Manufacturer of liquor holding Licence in PLL or CL-I or BRL appended to the relevant Rules under Bombay Prohibition Act, 1949.

Sales of liquor which are

Manufactured by claimant dealer.


In excess of the amount arrived at by applying the following formula:-

MRP X 25/125 in respect of sales mentioned in column 3.

(i) The claimant shall be registered dealer. The claimant dealer shall mention the corresponding MRP along with sale price in the sale bills.


Wholesaler of liquor holding License in FL-I or CL-II appended to the relevant Rules made under the Bombay Prohibition Act, 1949.

(a) Sales of liquor which are purchased from registered dealers on or after the 1st May 2011.

(b) Sales of liquor which are brought or imported into the State from outside the State by the claimant dealer or dispatched to him from outside the State.




Whole of tax on sales mentioned in clause (a) in column (3) of this entry.

In excess of the amount arrived at by applying the following formula :-

MRP X 25/125 in respect of sales mentioned in clause (b) in column (3) of this entry.


(i) The Claimant dealer shall be a registered dealer.

(ii) If the taxes have been paid or have become payable in respect purchases corresponding to the sales covered by clause (a) of column 3.

(iii)The claimant dealer shall mention the corresponding MRP along with sales price in the sales bills , if the said sales are covered by clause (b) in column (3).


Retailer of liquor holding License in FL-II or FL-BR-II or CL/ FL/TOD-III or country liquor Bar holding license in CL-III appended to the relevant Rules made under the Bombay

Prohibition Act, 1949.


Sales of liquor which are purchased from registered dealers on or after the 1st May 2011.


Whole of tax on sales mentioned in column (3) of this entry.

(i) The Claimant dealer shall be a registered dealer.

(ii) If the taxes have been paid or have become payable in respect purchases corresponding to the sales covered by column (3).


Restaurants and Hotels having gradation of 4 star or above 4 Star holding Licence in FL-III or E appended to the relevant Rules made under the Bombay Prohibition Act, 1949.

(a) Sales of liquor which are purchased from registered dealers on or after the 1st May 2011.

(b) Sales of liquor which are brought or imported into the State from outside the State by the claimant dealer or dispatched to him from outside the State.

In excess of 20 per cent, of sale price

Sales mentioned in clause (a) in column (3).

In excess of.-

MRP X 25/125 in respect of sales mentioned in clause (b) in column (3), and

(ii) 20 per cent, of sale price of sales of goods mentioned in clause (b) in column (3).

(i) The Claimant dealer shall be a registered dealer.

(ii) If the taxes have been paid or have become payable in respect of purchases corresponding to the sales covered by clause (a) of column (3).



Restaurants and Hotels having gradation of 3 star or below 3 star, clubs holding License in FL-III or FL-IV or E appended to the relevant Rules made under the Bombay Prohibition Act, 1949.

(a) Sales of liquor which are purchased from registered dealers on or after the 1st May 2011.

(b) Sales of liquor which are brought or imported into the State from outside the State by the claimant dealer or dispatched to him from outside the State.

In excess of five per cent, of sale price of

Sales mentioned in clause (a) in column (3).

MRP X 25/125 in respect of sales referred to, at (b) in column 3 and

(ii) Five per cent, of sale price of sales mentioned in clause (b) in column (3)

(i)The claimant dealer shall be a registered dealer.

(ii) If the taxes have been paid or have become payable in respect purchases corresponding to the sales covered by clause (a) of column (3).

Note:- A liquor dealer holding more than one Excise Licenses which fall into different entries mentioned above shall classify his turnover of sales in respect of each category of licences and avail the exemption mentioned against such sales in each of such entries.


SCHEDULE - II


Sr. No.

Class or classes of dealers

Class or classes of sales


Exemption


Conditions


(1)

(2)

(3)


(4)

(5)


Wholesaler of liquor holding License in FL-I or CL-II appended to the relevant Rules made under Bombay Prohibition Act; 1949.

registered dealers on or before the 30th April 2011.

In excess of the amount arrived at by applying the following formula:-

MRP X 25/125 in respect of sales mentioned in column (3) of this entry.

(i) The Claimant dealer shall be a registered dealer.

(ii) The claimant dealer shall mention the corresponding MRP along with sale price in the sale bills.

(iii) The claimant dealer shall be entitled to claim set-off on purchases of liquor and packing material thereof purchased on or before the 30th April 2011 subject to the fulfillment of the condition (iv) below.

(iv) The claimant dealer shall submit a statement of closing stock as on the 30th April 2011 in the format appended to this Schedule to the Joint Commissioner of Sales Tax (EIU) in Mumbai and respective Divisional Joint Commissioner of Sales Tax (VAT Administration) in rest of the Maharashtra by the 31st May 2011. (v) If the claimant dealer fails to submit the stock statement the set-off in respect of the said stock shall be disallowed.


Retailer of liquor holding License in FL-II or FL-BR-II or CL/FL/TOD-III appended to the relevant Rules made under the Bombay Prohibition Act, 1949.

Sales of liquor which are purchased from the registered dealers on or before the 30th April 2011.

In excess of the amount arrived at by applying the following formula:-

MRP X 25/125 in respect of sales mentioned in column (3) of this entry.


(i) The Claimant dealer shall be a registered dealer.

(ii) The claimant dealer shall be entitled to claim set-off on purchases of liquor and packing material thereof purchased on or before the 30th April 2011 subject to the fulfillment of the condition (iii) below. (Hi) The claimant dealer shall submit a statement of closing stock as on the 30th April 2011 in the format appended to this Schedule to the Joint Commissioner of Sales Tax (EIU) in Mumbai and respective Divisional Joint Commissioner of Sales Tax (VAT Administration) in rest of Maharashtra by the 31st May 2011. (iv) If the claimant dealer fails to submit the stock statement the set-off in respect of the said stock shall be disallowed.


Restaurants and Hotels having gradation of 4 star or above 4 star holding Licence in FL-III or E appended to the relevant Rules made under Bombay Prohibition Act, 1949.

Sales of liquor which are purchased from registered dealers on or before the 30th April 2011.

In excess of-

(i) Amount arrived by applying the following formula MRP X 25/125 in respect of sales mentioned in column 3 and

(ii) Twenty per cent, of sale price of sales mentioned in column (3).

(i) The Claimant dealer shall be a registered dealer.

(ii) The claimant Dealer shall entitled to claim set-off on purchases of liquor and packing material thereof purchased on or before the 30th April 2011 subject to the fulfillment of the condition (iii) below, (iii) The claimant dealer shall submit a statement of closing stock as on the 30th April 2011 in the format appended to this Schedule to the Joint Commissioner of Sales Tax (EIU) in Mumbai and respective Divisional Joint Commissioner of Sales Tax (VAT Administration) in rest of the Maharashtra by the 31st May 2011.

(iv) If the claimant dealer fails to submit the stock statement the set-off in respect of the said stock shall be disallowed


Restaurants and Hotels having gradation of 3 star or below 3 star, clubs holding License in FL-III or FL- IV or CL-III or E appended to the relevant Rules made under the Bombay Prohibition Act, 1949.

Sales of liquor which are purchased from the registered dealers on or before the 30th April 2011.

In excess of-

(i) Amount arrived by applying the following formula MRP*25/125 in respect of sales referred to, in column (3) and

(ii)Five per cent, of sale price of sales referred to, in column (3).

(i)The Claimant dealer shall be a registered dealer.

(ii) The claimant dealer shall be entitled to claim set-off on purchases of liquor and packing material thereof purchased on or before the 30th April 2011 subject to the fulfillment of the condition (iii) below, (iii) The claimant dealer shall submit a statement of closing stock as 011 the 30th April 2011 in the format appended to this Schedule to the Joint Commissioner of Sales Tax (EIU) in Mumbai

and respective Divisional Joint Commissioner of Sales Tax (VAT Administration) in rest of the Maharashtra by the 31st May 2011.

shall be disallowed.stocksubmit the stock statement the set-off in respect of the saidtofailsdealerclaimant(iv) If the


Note:- A liquor dealer holding more than one Excise Licenses which fall into different entries mentioned above shall classify his turnover of sales in respect of each category of licences and avail the exemption mentioned against such sales in each of such entries.

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Future growth path for service tax in India.

Service tax is envisaged as the tax of the future. Well synchronized taxation on manufacturing, trade (domestic & international) and service without giving rise to cascading effect of taxation would be an ideal worth pursuing in the immediate future. This would bring in VAT in its truest sense, though the ultimate objection usher in the regime of Goods and Service Tax (GST).

Continued growth in GDP accompanied by higher rate of growth in service sector promises new & wider avenues of taxation to the Government. If the tax on services reduces the degree of intensity of taxation on manufacturing and trade without forcing the Government to compromise on the revenue needs, then one of the basic objectives of taxing the service sector would be achieved.

Voluntary tax compliance on the part of taxpayers demands prudent accounting practices and transparency in the conduct of their business. Marginal rates of taxation would be conducive in this process. Many new services may be brought under the tax net in future. The inclusion of all value added services in the tax net would yield larger amount of revenue and make the existing tax structure more elastic.

Advanced economies of Western Europe, North America and Far East have share of service sector in their GDP ranging from 60% to 80%. The growth in absolute quantum of GDP and proportion of Service-sector in GDP holds promise for larger revenue generation without increasing the existing level of taxation

Future Course of Action

The following items of works have to be attended to urgently to improve the administration of Service Tax in the country.

1. Target (Budget estimate) of Rs.82000 crores Service Tax collection for f.y. 2011-12 to be exceeded.

2. Intensify the field survey operations to ensure that all taxable service assessees are brought into the tax net and Service Tax due from them are collected without hitch.

3. While the basic tenet of voluntary compliance of Service Tax law has to be adhered to, recalcitrant/ habitual evaders of Service Tax have to be booked for appropriate action under the law. There could be no leniency in this regard.

4. Effective use of Audit and Anti-evasion as tools for ensuring the compliance on the part of the assessee and curbing the instances of irregularities and tax evasion. With the launch of ACES greater emphasis will be on training the staff in computer skills necessary to carry out effective, systematic and result oriented analysis of data available in the system, to achieve their person.

5. The statutory change to prosecute frequent offenders/tax evaders is needed in the Act.

6. Effectively implement an Electronic Tax Administration (ETA) system for service tax so that service tax could be administered as a pioneer e-tax of the country. The Directorate General of Systems & Data Management has developed a web based software named as ‘ AUTOMATION OF CENTRAL EXCISE AND SERVICE TAX’ (ACES) which automates various processes of Central Excise & Service Tax for Assesses and Department and gives complete end to end solution. This web based software is available at ‘www.aces.gov.in’

7. Concentrate on liquidation of Service Tax arrears and issue necessary clarifications to the field officers so that arrears linked up with disputed interpretations of the provisions of the law could be easily resolved.

8. Attend to all major court cases relating to Service Tax law for early decision.

9. Deploy adequate staff to attend to the service tax work and provide infrastructure and conveyance to implement service tax law effectively.

1) Electronic Tax Administration

1.1 The Directorate General of Systems & Data Management has developed a web based software named as ‘ AUTOMATION OF CENTRAL EXCISE AND SERVICE TAX’ (ACES) which automates various processes of Central Excise & Service Tax for Assesses and Department and gives complete end to end solution.



The ACES can be used for:



(i) Online registration and amendment of registration details;

(ii) Electronic filing of documents such as Returns, Claims, Intimations and permissions;

(iii) Online tracking of the status of applications, claims and permissions;

(iv) Online facility to view documents like registration Certificate, Returns, Show Cause Notices, Order-In-Originals etc.

This web based software is available at ‘www.aces.gov.in’



1.2 As per the proviso to amended Rule 6 (2) of Service Tax Rules, 1994, where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall deposit the service tax liable to be paid by him electronically, through internet banking. This has been made effective from 01.04.2010 vide Notification No.01/2010 ST dated 19.02.2010.





1.3 As per the proviso to amended Rule 7 (2) of Service Tax Rules, 1994, where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall file the return electronically. This has been made effective from 01.04.2010 vide Notification No.01/2010 ST dated 19.02.2010.

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