TRADE CIRCULAR
Date: 02/07/2012
No.DC(A&R)/VAT/ROT/2011/9/Adm-6.
Circular No.10T of 2011.
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Sub :-
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Administrative relief in
respect of import export licences covered under
Schedule Entry C-39 of MVAT Act, 2002.
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Ref:-
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Government Resolution No. VAT 1511/CR-111/Taxation-1,
dated 21st October 2011.
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The State Government has
issued a Government Resolution referred above providing administrative relief
for the period 1st April 2005 to 31st December 2010 to the dealers who have
collected and paid tax in respect of duty paid scrips
which were tax-free prior to 1st January 2011 under the Maharashtra Value Added
Tax Act, 2002.
02. Background
Entry 39 of Schedule C to
MVAT Act provides a notified list of intangible goods for the purpose of
levying tax. The notified list of intangible goods included certain import
licenses
issued under Foreign Trade (Development and Regulation) Act, 1952.
However, all the scrips issued under Foreign Trade
(Development find Regulation) Act, 1992, were not covered by the said notified
list. Those scrips which were not notified under
entry C-39, were covered by entry 27 of Schedule A and
were tax-free.
However, under the belief
that all the scrips are covered by the term import
licenses and are covered under entry C-39, tax has been collected on the sale
of scrips and paid into the Government Treasury.
In order to include all
the duty paid scrips issued under Foreign Trade
Policy under a single entry a notification No.VAT
1510/CR 109/ Taxation-1, dated 20th December 2010 was issued amending
sub-entry 3 of entry C-39 of MVAT Act. The amended entry provides for a generic
entry including all kinds of Duty credit Scrips
covered under Foreign Trade (Development and. Regulation) Act, 1992. This notification is effective from
1st January 2011.
For the period 1.4.2005
to 31.12.2010, the various export organizations represented to the Government
that the above notification may be made effective retrospectively and
instructions may be issued to allow set off on the basis of tax invoice as proof
of tax paid into the Government Treasury.
03. Considering
the above request of these organizations, the Government has issued the
Government Resolution dated 21st October 2011 referred above.
The Salient Features of the Government Resolution are
as follows:-
(a) The
tax which has been wrongly collected and paid to the Government Treasury on the
sale of any scrips which are issued under Foreign
Trade (Development and Regulation) Act, 1992, but not covered by sub-entry 3 of
entry C-39 of MVAT Act, @4% for the period from 1st April 2005 to 31st March
2010 and @5% for the period 1st April 2010 to 31st December 2010 shall not be
forfeited
(b) No
refund of the amount of tax paid on sale of scrips
would be allowed.
(c) Set
off would be allowed to the purchaser subject to the condition that the seller
has paid tax on the sale of such scrips to the
Government Treasury.
Conditions for availing
the administrative relief
(1) The
dealer purchasing or selling the scrips should be a
registered dealer under MVAT Act, 2002.
(2) The
dealer should have paid tax on the tax-free scrips
@4% for the period .1.4.2005 to 31.3.2010 and @5% for the period 1.4.2010 to
31.12.2010.
Authorities granting
administrative Relief
(a)
In pursuance of the powers
conferred by the above resolution the powers conferred on the Commissioner of
Sales Tax are hereby delegated further to all the sub-ordinate assessing
authorities.
(b)
All other conditions regarding availment of set-off by the purchasing dealer shall be
applicable.
This circular cannot be
made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any
doubt, he may refer the matter to this office for further clarification.
Yours faithfully,
(SANJAY BHATIA)
Commissioner of Sales
Tax,
Maharashtra State, Mumbai.
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