Sunday, March 11, 2007

MVAT - Trade Cir. No.21 T of 2007





8 th floor, Vikrikar Bhavan,

Mazgaon, Mumbai-400010.


TRADE CIRCULAR

To

…………………………

…………………………

No.VAT-1006/ Resale Tax( Medicine)/71/ Adm/3 Mumbai, Dt.27.02.2007

Trade Cir. No.21 T of 2007


Sub: Applicability of Resale Tax on Drugs and Medicine

under Bombay Sales Tax Act, 1959.


Gentlemen/Sir/ Madam,


Queries have been received by this office regarding the applicability of resale tax on medicines under the Bombay Sales Tax Act, 1959. The position is clarified as under:

2. The provision for Resale Tax (R.S.T.) was inserted w.e.f. 1 st April 2001 on goods specified in Schedule ‘C’ by section 10 of the B.S.T. Act, 1959. The section was again amended w.e.f. 1 st May 2002 . As per provisions of clause (iv) of section 10, resale of goods covered by entry 37 in Part-II of Schedule ‘C’ is required to be deducted from turnover of sales while determining turnover of sales for levy of Resale Tax.

3. At the same time, entry 146, in Group ‘A’ of Notification under section 41 was added w.e.f. 1 st May 2002 , for exemption of R.S.T. on retailers w.e.f. 1 st April 2001 subject to some conditions and restrictions. The said notification entry was deleted retrospectively w.e.f. 1 st May 2002 vide Notification No.STA-2004/ CR-24/Taxation- 2 dated 22 nd July 2004 .

4. It is clarified that the entry 146, in Group ‘A’ of Notification under section 41 had become redundant as exemption of R.S.T. on drugs and medicine covered under Schedule Entry C-II-37 was provided by the section itself. R.S.T. is not leviable on drugs and medicine w.e.f. 1 st May 2002 although the notification entry 146 has been deleted with effect from 1 st May 2002 .

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 the members of your association.


Yours faithfully,



(B. C. Khatua)

Commissioner of Sales Tax,

Maharashtra State , Mumbai.


No.VAT-1006/ Resale Tax( Medicine)/71/ Adm/3 Mumbai, Dt. 27.02.2007.

Trade Cir. No.21 T of 2007


1. Copy forwarded To :

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

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

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

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

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

f. All the Sales Tax Officers in the State.

2. Copy forwarded with compliments for information to :

a. The Officer on Special Duty, 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. Dy. Commissioner of Sales Tax,

(Act & Rule) Maharashtra State , Mumbai .

2 comments:

nilesh.nirale said...
This comment has been removed by the author.
nilesh.nirale said...

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