IMPORTANT Changes in Maharashtra VAT Act, 2002

The LA Bill No. XVII of 2012 containing the proposed amendments in Tax Laws is announced and the important changes are summarised as follows -

Changes in VAT Act, 2002 -

• The liability to REGISTER under VAT Act is proposed to be on exceeding the prescribed limits of either ALL SALES or ALL PURCHASES w.e.f. 1st May 2012 as against only ALL SALES at present.
• Introduction of Purchase Tax on -
• purchases of cotton from unregistered dealer or non-dealer for despatch to place out of State but not out of India not by reason of sale to his own place of business or of his agent
• purchases of cotton from unregistered dealer or non-dealer for manufacture of taxfree goods
• purchases of cotton from unregistered dealer or non-dealer for manufacture of taxable goods and such goods aredespatch to place out of State but not out of India not by reason of sale to his own place of business or of his agent
• Similar provisions for purchase of oil-seeds
•  Payment of Late Fee of Rs.5,000/- before filing of return for non-filing of return in prescribed time.
• Provision of compulsory payment of part disputed amounts in appeal if more than 3 adjournments on account of appellant.
• Penalty of 100% of tax payable if fails to register and carry on business
• Sales Invoices and Bills to be retained for EIGHT years, increased from present three years limit. 

Changes in Profession Tax Act -

• The un-enrolled person's liability will be exceed eight years from the end of the year immediately preceding the year in which he obtains enrollment or proceedings for enrollment are initiated.
• Payment of Late Fee of Rs.1,000/- before filing of return for non-filing of return in prescribed time by registered employer.
• Revised return provision within 6 months from end of the financial year to which return relates
• Refund of excess payment provision made applicable to employers also.