In exercise of the powers conferred by section 42 of the Maharashtra Value Added Tax Act, 2002, (Mah. IX of 2005) and in supersession of the Government Notification, Finance Department No. VAT-1505/ CR-105/ Taxation-1, dated 1st April 2005, Government of Maharashtra hereby subject to the conditions specified in column (5) against each class of dealers specified in column (2) of the Schedule appended hereto, provides for composition of tax payable by the said dealers on their sales specified in column (3) of the said Schedule as specified in column (4) of the said Schedule.
SCHEDULE
(a) served for consumption at or in the immediate vicinity of any restaurant, hotel, eating house, refreshment room, boarding establishment, factory canteen or in any club or
(b) supplied by way of counter-sale by such restaurant, hotel, eating house, refreshment room or boarding establishment or club, or
(c) served for consumption at any place other than a restaurant, hotel, eating house, refreshment room boarding establishment factory canteen, or any club by a caterer.
(ii) 8 per cent. of the turnover of sales, referred to in column (3), in the case of a registered dealer, whose turnover of such sales exceeds rupees three crore in the previous year, to which the composition scheme is desired ;
(iii) 10 per cent. of the turnover of sales, referred to in column (3), in the case of an unregistered dealer.
Explanation:- Where the dealer is also serving alcoholic drinks, the tax payable on sales of alcoholic drinks will not be compounded under this notification but the tax payable on sales by such dealer of food and non-alcoholic drinks will be allowed to be compounded under this notification.
(ii) The claimant dealer shall not collect tax including composition amount separately in the bill, cash memo or invoice issued to the customer.
(iii) The claimant dealer shall apply in Form -2 in respect of caterers and in Form - 1 in case of other dealers referred to in column (2) of this entry, to the Joint Commissioner of Sales Tax (VAT Administration) concerned or, the Joint Commissioner of Sales Tax of the concerned Nodal Division as the case may be;
(iv) The Claimant dealer is not eligible to issue "Tax Invoice" in respect of sales of goods referred to the column (3) of this entry.
(v) If the claimant dealer opts for the composition scheme on or after the 1st July 2009 but on or before 30th September 2009, then he shall be eligible to pay tax under the composition scheme with effect from the 1st July 2009.
(vi) In case of a newly registered dealer, if he applies for composition scheme within one month from the date of grant of registration certificate, then option to join composition would be effective from date of registration.
(vii) Subject to conditions (iii), (v) and (vi), if the dealer opts for composition at any time after the 1st April of any year then the option shall be effective only from the beginning of the next financial year.
(viii) The dealer who opts out or, as the case may be, ceases to be eligible for the composition scheme, may claim set-off in his first return to be uploaded as a noncomposition dealer, after opting out of composition scheme on the purchases of goods which are held in stock on the date of opting out of the composition scheme and on which he had not claimed set-off earlier.
(ix) The dealer opting for the composition scheme under this notification shall reverse the set-off, claimed by him on the purchase of goods which are held in the stock on the date of opting for the composition scheme. Such amount of set-off shall be paid by him alongwith his first return of composition scheme, after opting for the composition scheme.
(ii) The claimant dealer shall not be entitled to claim any set off under the Maharashtra Value Added Tax Rules, 2005, in respect of the purchases corresponding to any goods which are sold or resold or used in packing of goods referred to in column (3) of this entry.
(iii) The turnover of sales of bakery products including bread has not exceeded rupees fifty lakh in the year previous to which the composition is availed and if the dealer was not liable for registration under the Bombay Sales Tax Act, 1959 or as the case may be under the Maharashtra Value Added Tax Act, 2002, in the immediately preceding year, there is no previous year then he shall be entitled to claim the benefit of the scheme in respect of the first fifty lakh rupees of the total turnover of sales in the current year.
(iv) The claimant dealer shall apply in the 'Form-3' appended to the notification to the Joint Commissioner of Sales Tax (VAT Administration) concerned or, the Joint Commissioner of Sales Tax of the concerned Nodal Division as the case may be.
(iv-a) The option to Join Composition would be effective from the date of registration, if the dealer applies for composition scheme at the time of registration.
(iv-b) if the dealer opts for composition scheme from 1st April, 2011, he shall apply on or before the 30th June, 2011.
(iv-c) If the dealer opts for composition shall be effective only from the beginning of the next financial year.
(v) Subject to condition (iii), if the option to join the composition scheme is exercised, in any year then it can be changed only at the beginning of the next year.
(vi) The claimant dealer shall not be eligible to issue "Tax Invoice" in respect of sales of goods referred to in column (3) of this entry.
(vii) The claimant dealer shall not be eligible to recover the composition amount from any customer separately.
(a) goods covered by entries 5 and 10 of Schedule D, appended to the Act,
(b) furnishing fabrics, notified by the State Government under entry 101 of Schedule C appended to the Act
(2) 1.5% oft the total turnover of sales of taxable goods, referred to in column (3).
(a) The turnover of sales of goods, specified in column (3) of this entry has not exceeded rupees One crore in the previous year to which the composition is desired.
(b) The claimant dealer is not a manufacturer or an importer.
(c) The taxable goods resold are purchased from registered dealers.
(d) Purchases of tax free goods may be from registered dealers as well as from unregistered dealers.
(e) Purchases of taxable goods from unregistered dealers shall be allowed only if meant for packing of goods resold.
(f) The selling dealer shall not collect tax separately in respect of the sales specified in column (3).
(g) The claimant dealer shall not be eligible to issue 'Tax invoice' in respect of sales of goods referred to in column (3) of this entry.
(h) The claimant dealer shall not be entitled to claim any set off under the Rules, in respect of the purchases corresponding to sale of any goods, referred to in column (3) of this entry, and the goods, used in packing of such goods.
(ii) Application for the composition scheme :-
(a) For the year 2014-15-A dealer, liable to file six monthly returns for the year 2014-15, or, as the case may be, a dealer, who has already opted for the composition scheme under entry (3), as it existed prior to the 1st October 2014 (hereinafter referred to as, "earlier composition scheme"), may opt for this composition scheme for the year 2014-15 by uploading an application in 'Form 4A', appended to this notification on or before the 31st October 2014. If found eligible, such dealer can take benefit of this composition scheme with effect from the 1st October 2014. The dealers, who are liable to file monthly or, as the case may be, quarterly returns, for the year 2014-15 shall not be eligible to opt for this composition scheme for the year 2014-15.
(b) For the year 2015-16 and thereafter.- In any other case, the claimant dealer shall upload an application in 'Form 4A' appended to this notification on the Department's website for exercising the option to pay tax under the composition on or before the 30th April of the respective year.
(c) Newly registered dealers .- An applicant for registration desiring to opt for the composition scheme shall indicate his option to opt for the composition scheme in Form 101, appended to the Rules. Such dealer shall be eligible to claim benefit of this composition under this entry from the date of effect of the registration certificate.
(iii) Continuance in the Composition Scheme :-
The dealer, who is permitted to opt for this composition scheme can continue to take benefit of the composition scheme, till he opts out of the scheme or if he violates the conditions of the scheme.
(iv) Opting out or ceasing to be eligible for the Composition Scheme :-
(a) Dealer under the 'earlier composition scheme'- The dealer who had opted for the 'earlier composition scheme' shall cease to be eligible for the benefits of this composition scheme, unless an application in 'Form 4A' is uploaded on the Department's website on or before the 31st October 2014.
(b) Dealer under this composition scheme.- The dealer, who desires to opt out of the composition scheme shall intimate in 'Form 4B' at the beginning of the year on or before the 30th April on the Department's website and on such intimating, he shall cease to be composition dealer with effect from the 1st day of April of that year.
(c) In case of contravention .- The dealer, who contravenes any of the conditions of this notification, shall cease to be eligible for the benefit of composition from the date on which he has contravened the conditions of this notification.
(v) Set off, in case of opting in or opting out of composition scheme :-
(a) The dealer opting for the composition scheme under this notification shall reverse the set off, claimed by him on the purchase of goods, which are held in stock on the date of opting for the composition scheme. Such amount of set off shall be paid by him alongwith his first return of composition scheme, after opting for the composition scheme.
(b) The dealer, who opts out or, as , the case may be, ceases to be eligible for the composition scheme, may claim set off in his first return to be uploaded as a non- composition dealer, after opting out of composition scheme on the purchase of goods which are held in stock on the date of opting out of the composition scheme and on which he had not claimed set off earlier.
(vi) Omitted w.e.f.01-04-2016.
(ii) The selling dealer proves to the satisfaction of the Commissioner that the Entry Tax in respect of the said vehicle has been paid, or that the said vehicle is registered at the time of purchase under the Central Motor Vehicle Rules, 1989 in the State of Maharashtra and accordingly, registration mark of this State was allotted to the said vehicle.
(iii) The claimant dealer shall not be eligible to claim set-off of tax paid or payable or, and of entry tax paid or payable, if any, on purchases of second-hand motor vehicle or tractors referred to in column(3) of this entry.
(iv) The claimant dealer shall apply in the 'Form-5' appended to the said notification for exercising the option to pay tax under the composition scheme to the Joint Commissioner of Sales Tax (VAT Administration) concerned or, the Joint Commissioner of Sales Tax of the concerned Nodal Division as the case may be.
(v) The claimant dealer shall not issue "Tax Invoice" in respect of sales of goods referred to in column (3) of this entry.
(vi) The claimant dealer shall not be entitled to recover composition amount from any customer separately.
Form-1
(See section 42 of the Maharashtra Value Added Tax Act, 2002)
Intimation for choosing an option to pay tax under the scheme of composition under the Maharashtra Value Added Tax Act, 2002
I........................................... of......................................................... am a dealer registered under the Bombay Sales Tax Act, 1959 and I continue to be registered under Maharashtra Value Added Tax Act, 2002.
In terms of the provisions of section 42 of the Maharashtra Value Added Tax Act, 2002, I confirm that I am eligible to opt for payment of tax under the composition scheme and accordingly, I hereby communicate that I would be paying tax under the composition option with effect from 1st of April 2005. Further, I hereby undertake to abide by the terms and conditions governing the composition scheme.
I am aware that as a composition dealer, I am not eligible to
- claim set-off of sales tax paid on purchases corresponding to any goods which are sold or resold or used in the packing of goods referred to in column (3) of the entry no (1) of this notification,
- eligible to recover the composition amount from my customers separately and
- to issue 'Tax Invoice' in respect of sales of goods referred to in column (3) of the entry no. (1) of this notification.
- change over to a normal VAT dealer till the end of the financial year.
Received intimation for choosing an option to pay tax under the scheme of composition.
Please use this new number in all the documents such as invoices purchase orders, and the returns, chalans etc. under this Act -
-
Form-2
I ................................................ of ........................................................... am a dealer registered under the Bombay Sales Tax Act, 1959 and I continue to be registered under Maharashtra Value Added Tax Act, 2002.
- to issue ' Tax Invoice ', in respect of sales of goods referred to in column (3) of the entry no. (1) of this notification
Please use this new number in all the documents such as invoices purchase orders, and the returns, chalans etc. under this Act
Form-4
I ................................................ of ................................................ am a dealer registered under the Bombay Sales Tax Act, 1959 and I continue to be registered under Maharashtra Value Added Tax Act, 2002.
- claim set-off of sales tax paid on purchases corresponding to any goods which are sold or resold or used in the packing of goods referred to in column (3) of the entry no (3) of this notification,
- to issue ' Tax Invoice ' in respect of sales of goods referred to in column (3) of the entry (3) of this notification,
I further declare that I am not manufacturer or importer or not purchasing any goods from a registered dealer whose sales of the said goods are not liable to tax by virtue of the provisions contained in sub-section (1) of section 8 of the Act.
FORM- 4A
Intimation for opting for the Retailer Composition Scheme
I, ....................................................... (Enter full name of signatory), Proprietor, Partner, Karta, Director, Manager, Principal Officer, Authorised Person, Trustee (Select status of signatory) of M/s........................ (Enter Name of Business), a dealer registered under the Maharashtra Value Added Tax Act, 2002, holding TIN ...........................desire to opt for the Retailer Composition Scheme.
In terms of the provisions of section 42(1) of the Maharashtra Value Added Tax Act, 2002, I confirm that I am eligible to opt for payment of tax under the Retailer Composition Scheme.
I hereby communicate that I would be paying tax under the Retailer Composition Scheme with effect from,-
(i) 1st October 2014 in the year 2014-15, or
(ii) 1st April ............in the year.............
I hereby undertake to abide by the terms and conditions governing the Retailer Composition Scheme.
I declare that I am not a manufacturer or an importer or not purchasing any goods from a registered dealer whose sales of the said goods are not liable to tax by virtue of the provisions contained in sub-section (1) of section 8 of the Act.
I am aware that as a composition dealer :
- My/our turnover of sales has not exceeded rupees One Crore in the previous year, and
- I/we cannot purchase the taxable goods for resale, from an unregistered dealer, and
- I am/we are not eligible to claim set-off of sales tax paid on purchases corresponding to any goods which are sold or resold or used in the packing of goods referred to in column (3) of entry (3) of this notification, and
- I am/we are not eligible to recover the composition amount from my customers separately, and
- I am/we are not eligible to issue 'Tax Invoice' in respect of sales of goods referred to in column (3) of the entry (3) of this notification, and
- I am/we are not eligible to change over to a normal VAT dealer till the end of the financial year, and
- I am/we are required to reverse the set off, claimed by me on the purchase of goods, which are held in stock on the date of opting for the composition scheme. Such amount of set off shall be paid by me along with my first return of composition scheme, after opting for the composition scheme.
I am aware that in case of contravention of any condition in the composition scheme, I shall cease to be eligible for the benefits of this composition with effect from the date of such contravention.
FORM- 4B
Intimation for opting out/ceasing to be eligible for the Retailer Composition Scheme
I, ................................(Enter full name of signatory), Proprietor, Partner, Karta, Director, Manager, Principal Officer, Authorised Person, Trustee (Select status of signatory) of M/s. ....................... (Enter Name of Business) a dealer registered under the Maharashtra Value Added Tax Act, 2002, holding TIN ............................ intimate as follows :-
(i) I desire to opt out of the Retailer Composition Scheme with effect from 1st April ..................
(ii) I have ceased to be eligible for the benefits of the Retailer Composition Scheme with effect from.............. (i.e. the date of contravention of any of the conditions of the notification).
Form-5
I ............................................. of ............................................................ am a dealer registered under the Bombay Sales Tax Act, 1959 and I continue to be registered under Maharashtra Value Added Tax Act, 2002.
· claim set-off of tax paid and of entry tax paid or payable, if any , of the second had motor vehicle or tractors mentioned in column (3) of the entry 4 of the notification.
· eligible to recover the composition amount from my customers separately and
· to issue 'Tax Invoice ' in respect of sales of goods referred to in column (3) of the entry (4) of this notification