Retailer Composition Scheme For Mvat Dealers – Notification u/s 42 of MVAT Act

FINANCE DEPARTMENT

Madam CamaMarg, Hutatma Rajguru Chowk, Mantralaya,
Mumbai
400 032, dated the 21th August 2014 .

NOTIFICATION

MAHARASHTRA VALUE ADDED TAX ACT. 2002.

No. VAT 1514/CR-58/Taxation-1.- In exercise of the powers conferred by section 42 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby amends the Government Notification, Finance Department No. VAT.- 1505/ CR-105/ Taxation-1, dated the 1st June 2005, with effect from the 1st October 2014, as fo11ows:-
In the said notification,-
(1) in the SCHEDULE, for entry (3), tho. following entry shall be substituted, namely;-

“(3) Retailers
Total turnover of sales made by a registered dealer, who
is a retailer as provided in section 42 (1) of any goods excluding the turnover
of sales, if any, effected by him of the,- (a) goods covered by entries 5and 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.

.

(1) 1% on the total turnover of sales of goods, referred to in
column (3) including tax free goods, or
(2) 1.5% on the total turnover of
sales of taxablegoods, referred to in column (3).
(i) Conditions to become eligible for availing the
composition scheme :-

(a) The turnover of sales of goods, specified in
column (3) of this entry has not exceeded rupees fifty lakh 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 called 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.-Adealer, liable to file six monthly returns furthe 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 31 st October 2014. If found
eligible, such dealer can take benefit of this composition scheme with effect
frorn 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 -At 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 or before the
30th April of the respective year. (c) Newly registered dealers .- All applicant
for registration desiring to opt for the composition scheme shall indicate his
option to opt for the composition scheme in Form to 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 opt out of the scheme or if he violates he
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 schemes-” 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
along with his first ” return of composition scheme, after opting out 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 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) Returns :-Dealer, opting for the composition scheme under this entry
shall file six monthly returns, A composition dealer who ceases to be a
composition dealer in the middle of the year shall continue to file six monthly
return till the end of that year. ”

(2) after Form 4, the following Forms shall be inserted, namely :-

 

“FORM-4A

(See section 42 of the Maharashtra Value Added Tax Act, 2002)  Intimation for opting for the Retailer Composition Scheme ,

I…………………………………………………………….,
: (Enter full name of signatory), Proprietor, Partner, Karta, Director,Manager, Principal Officer, Authorized 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) lst 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 fifty lakh in the previous year. and

” l/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.

 

 

Place:
Date :

Signature
Status of the signatory.

FORM-4B
(See section 42 of the Maharashtra Value Added Tax Act, 2002)

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).

Place:
Date :

Signature
Status of the signatory.

By order and in the name of the Governor of Maharashtra,

O.C. BHANGDIYA,
Deputy Secretary to
Government,

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