Maharashtra VAT Rules

Notice For Payment Of Tax Not Paid According To Return.
Where a dealer has furnished a return or revised return under section 20, but has not first paid into the Government Treasury the whole of the amount of tax, interest and penalty due or the extra amount due according to such return, or as the case may be, the revised return, as required under section 32, the Commissioner may by notice served on him require him to pay forthwith the amount due from him according to the return or, as the case may be, the revised return, but remaining unpaid.

Claim and grant of set-off in respect of purchases made in the periods commencing on or after the appointed day.

1. In assessing the amount of tax payable in respect of any period starting on or after the appointed day, by a registered dealer [ hereinafter in this rule referred to as ''the claimant dealer'' the Commissioner shall in respect of the purchases of goods made by the claimant dealer on or after the appointed day, grant him a set-off of the aggregate of the following sums, that is to say,
   1. the sum collected separately from the claimant dealer by the other registered dealer by way of sales tax on the purchases made by the claimant dealer from the said registered dealer of goods being capital assets and goods the purchases of which are debited to the profit and loss account, trading goods, raw materials, parts, components, spares, packing materials and fuel.
   2. tax paid in respect of any entry made after the appointed day under the Maharashtra Tax on the Entry of Motor Vehicles into Local Areas Act, 1987.
   3. the tax paid in respect of any entry made after the appointed day under the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2003
2. set-off under this rule shall not be granted in regard to any quantum of tax if set-off under rule 31 has been claimed in respect of the same quantum of tax or if set-off has been claimed in respect of the said quantum under any earlier law.

Reduction In Set-Off.

1. The set-off available under any rule shall be reduced and shall accordingly be disallowed in part or full in the event of any of the contigencies specified below and to the extent specified.
2. If the claimant dealer has used any taxable goods as fuel, then an amount equal to four percent. of the corresponding purchase price shall be reduced from the amount of set-off otherwise available in respect of the said purchase.
   1. If the claimant dealer manufactures any tax free goods then an amount equal to four per cent. of the purchase price of the corresponding taxable goods purchased by him (not being goods treated as capital assets or used as fuel) shall be reduced from the amount of set-off otherwise available in respect of the said purchases.
   2. If the claimant dealer resells any tax free goods and the tax-free goods are packed in any material, then an amount equal to four percent. of the purchase price of the corresponding purchases of packing materials, if any, shall be reduced from the amount of set-off otherwise available in respect of the said purchases of packing materials.
3. If the claimant dealer dispatches any taxable goods outside the State, to any place within India, not by reason of sale, to his own place of business or of his agent or where the claimant dealer is a commission agent, to the place of business of his principal, then an amount equal to four per cent. of the purchase price of the corresponding taxable goods (not being goods treated as capital assets or used as fuel)shall be deducted from the amount of set-off otherwise available in respect of the said purchases.
4. If the claimant dealer has made a sale by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract then, if the claimant dealer has opted for composition of tax under sub-section (3) of section 42, the corresponding amount of set-off to which he is otherwise entitled shall be reduced and the set-off to be allowed shall accordingly be calculated by multiplying the said amount of set-off by the fraction 16/25,
5. If the business in which the dealer is engaged is discontinued and is not transferred or otherwise disposed of and is not continued by any other person, then the set-off on purchases not being purchases treated as capital assets, corresponding to the goods held in stock at the time of discontinuance shall be disallowed and accordingly be reduced fully.
6. The claimant dealer shall deduct the amount required to be reduced under this rule from the amount of set-off available in respect of the period in which the contingencies specified in this rule occur and claim only the balance amount as set-off and when the amount so required to be deducted exceeds the said amount of set-off available in respect of that period, he shall pay an amount equal to the excess at the time when he is required to pay the tax in respect of the said period.