Sunday, March 11, 2007

MVAT - Trade Cir-18t of 2007 - Composition Scheme Under section 42 for the period 2006-07

829, 8 th floor, Vikrikar Bhavan,

Mazgaon, Mumbai – 400 010.






No. SR.DC( A&R)/Adm-3/Noti/ 2006/3 Mumbai Dt :20.02.07

Trade Cir.No. 18 T of 2007

Gentlemen/Sir/ Madam,

Sub : Composition Scheme Under section 42

for the period 2006-07 under the

Maharashtra Value added Tax Act, 2002.

Ref : 1) VAT-2005/ACT/ VD-1 , dt.28 th April, 2005.

Circular no. 2T of 2005

2) VAT-2005/ACT/ VD-1 , dt.13 th June, 2005.

Circular no. 14T of 2005

3) VAT-2005/ACT/ VD-1 , dt.20 th July, 2005.

Trade Circular no.20T of 2005

4) VAT-2005/ACT/ VD-1 , dt.5th September, 2005.

Trade Circular no.26T of 2005

Section 42 of the Maharashtra Value Added Tax Act, 2002 authorises the State Government to prescribe Composition Schemes for Restaurants, Caterers, Bakeries, Retailers and dealers in Secondhand Motor Vehicles. In exercise of such powers, the State Government had issued a Notification dated the 1 st April 2005 . This Notification has been amended on the 1 st June 2005 . This office had issued Trade Circulars dated 28 th April 2005 , 13 th June 2005 , 20 th July 2005 and 5 th September 2005 wherein it had been clarified, amongst other things, that the date for application under the scheme had been extended. Queries have been received by this office regarding the eligibility of dealers for the year 2006-07 under the various Composition Schemes. The issue has been considered.

2. It is now decided that where a dealer has already joined the Composition Scheme at any time prior to the 31 st March 2006 , then unless he has opted out of the Scheme, he will continue to be treated as a dealer under the Composition Scheme for the year 2006-07. If a dealer has become eligible for the first time in the year 2006-07 to join any of the Composition Schemes, then he may apply to the registering authority for grant of certificate under the respective entries of the Notification. This certificate will be issued in all instances with effect from the 1 st April 2006 or such other later date as may be appropriate in a particular case [e.g. new R.C.].

Such dealers should file their return in respect of the year 2006-07 as if they have been eligible for the respective Composition Scheme.

3. The other conditions as mentioned in the notification and clarification made from time to time, as applicable, shall continue to apply to the dealer who has become eligible for the first time in the year 2006-07.

4. 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.

5. You are requested to bring the contents of this circular to the notice of all the members of your association.

Yours faithfully,


Commissioner of Sales Tax

Maharashtra State , Mumbai.

No. SR.DC( A&R)/Adm-3/Noti/ 2006/3 Mumbai Dt : 20.02.07

Trade Cir.No.18 T of 2007

Copy forwarded To :

1. a. All the Addl. Commissioners of Sales Tax in the State.

b. All the Joint Commissioner of Sales Tax in the State.

c. All the Sr. Dy. Commissioners of Sales Tax in the State.

d. All the Dy. Commissioner of Sales Tax in the State.

e. All the Asstt. Commissioners of Sales Tax in the State.

2 . Copy forwarded with compliments for information to :

a. The Deputy Secretary, Finance Department, Mantralaya, Mumbai.

b. The Under Secretary, Finance Department, Mantralaya, Mumbai.

c. The Accounts Officer, Sales Tax Revenue Audit, Mumbai and Nagpur .

3. Copy to : All the Desks and Desk Officers in the office of the Commissioner of Sales Tax, Maharashtra State , Mumbai.

(S.D.Bhandare. )

Sr. Deputy Commissioner of Sales Tax,

(Act & Rules) Maharashtra State , Mumbai.

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