Maharashtra VAT Rules

Calculation Of Cumulative Quantum Of Benefits.

1. The cumulative quantum of benefits, availed of by a dealer (hereinafter referred to as ''the said dealer'') who holds a valid certificate of Entitlement granted by the Commissioner for the purpose of exemption from payment of tax shall be calculated in respect of any period commencing on or after the appointed day in the manner specified below:-
2. The cumulative quantum of benefits received by the said dealer shall be the aggregate of the following sums that is to say:-

   a sum equal to the amount of sales tax which would have been payable to the Government on the turnover of sales of the goods manufactured by the said dealer in the eligible unit and specified in the Eligibility Certificate effected by the said dealer if the said dealer was not holding the said Certificate of Entitlement

   (i) a sum equal to 4 per cent of the turnover of inter-state sales of goods manufactured by the said dealer in the eligible unit and specified in the Eligibility Certificate, effected by the said dealer and if the inter-State sales of such products are generally liable to sales tax at a rate less than four percent, then a sum calculated at such lower rate, and

   in the case of a unit holding a Certificate of Entitlement under the Package Scheme of Incentives, 1993 or the Power Generation Promotion Policy, 1998, a sum equal to the amount of Central Sales Tax that would have been payable to the Government by the said dealer on his turnover of inter-State sales of goods manufactured by the said dealer in the eligible unit a specified in the Eligibility Certificate, if the said dealer was not holding the said Certificate of Entitlement.

   Explanation I
   For the purposes of all the Package Schemes except the 1979 and 1983 Package Schemes, the expression ''goods manufactured in the said unit'' shall include by-products and scrap products generated during the process of manufacture.

   Explanation II
   In the case of a Mega Project, in respect of the turnover of inter-state sales of goods by the said dealer, covered by sub-section (1) of section 8 of the Central Sales Tax Act, 1956 and specified in the Eligibility Certificate, the sum for the purpose of clause (b) shall be calculated @1%.

   Explanation III
   For the purposes of the New Package Scheme of Incentives for Tourism Projects, 1999, the expression ''goods manufactured'' shall include liquor served for consumption in the premises of the said dealer outside the Mumbai Municipal Corporation Limits.

   Explanation IV
   In this rule the expression ''sale'' includes the sale by a depot, head office or selling agent of the dealer of products manufactured by the said dealer in the said unit.

Refund Of Tax To Eligible Units.

1. Every unit holding an Entitlement Certificate for the purposes of any of the Package Schemes of Incentives shall be entitled to claim refund of the tax including entry tax of an amount equal to the set-off to which it would have been entitled under the Act or rules on the purchases of raw materials made on or after the appointed day if it was not holding Certificate of Entitlement in respect of each period for which it is required to file a return.
2. For the purposes of this rule, the unit shall make an application within one month of the end of the period to which the return relates giving such details and particulars as may be specified therein to the Commissioner in respect of each period for which it is required to file a return under rule 14 on or after the date prescribed for filing of such return.
3. The Commissioner shall cause such refund to be issued within three month of the end of the period to which the return relates of the date of receipt of the application if the application is in order and all the required details are furnished and no dues are outstanding against such unit. The grant of any refund under this rule shall be subject to assessment, if any, made in respect the period for which the refund is granted under this rule.
4. No set-off under any rule shall be granted to a unit holding the Entitlement Certificate in respect of any purchases of raw materials made on or after the appointed day.

Raw Materials And Manufacture.
For the purposes of the rules relating to the Package Schemes of Incentives,

the expression 'raw materials' shall mean components, intermediate goods , consumables, stores, lubricants, fuels of all types, news print, which are used in the process of manufacture and packing materials which are used in the packing of manufactured products and in respect of the units dealing in iron and steel as described in section 14 of the Central Sales Tax Act, 1956 shall include natural gas used both as fuel and raw materials.

the expression 'manufacture' or its cognate expression when used in respect of units certified by the State Industrial and Investment Corporation of Maharashtra Limited (SICOM) or, as the case may be, the Directorate of Industries (but not in respect of units certified by any other implementing agency) shall include the following processes,-

1. conversion of hot rolled sheets/strips into cold rolled sheets/strips
2. conversion of steel sheets/strips into galvanised sheets/strips
3. conversion of thicker gauges of iron and steel sheets into thinner gauge of iron and steel sheet,
4. drawing wire from wire rods or galvanising wire,
5. giving heat treatment, threading and casing of seamless pipes,
6. processing of un-wrought, semi manufactured or concentrated forms of gold and silver into refined bullion.