Tax World

Sales Tax

P. C. Joshi, Advocate

News from London

A new disclosure opportunity have been announced for a period from 1st September 2009 to 12th March, 2010. The assessees with unpaid tax connected to off shore accounts and assets are expected to take advantage of this opportunity. The penalty in such cases have been reduced at 10% only, for encouraging the tax-payers.

From 1st January, 2010, supply of service rules will be brought into force; for which a guidance booklet have been published.

The assessees desiring to submit paper self assessment tax returns for the year 2008-09 are required to file the same by 31st October, 2009, while the submission online have to be done by 31st January, 2010.

The standard rate of VAT would be increased from 15% to 17.5%, for which the Revenue department have issued the guidance well in advance to business community.

Source: Shri Naresh Shah, Partner,

M/s Lubbock Fine, London, through their e-bulletin.

News from Maharashtra

On 27th August, 2009, the Governor of Maharashtra has issued an Ordinance bearing No. 18 of 2009, whereby certain amendments have been effected in the Maharashtra VAT Act, 2002.

1. Amendment to section 6

By amending the said section with retrospective effect from 1st April, 2005, the levy and collection of tax of Re. 1/- per litre on sale of motor spirit have been saved.

2. Amendment to section 93

Section 93 provided for proportionate availment of the incentive by the Units enjoying the benefits under the Package Scheme of Incentives, 1993. It is now provided that in case of the expansion affected by the existing Unit, on account of increase in production capacity or on acquisition of new fixed capital assets, would be entitled to avail the benefits, only proportionately to the turnover of sale that may be arrived at by the formula mentioned in the amended Section.

3. Section 93A

By insertion of new section 93A, it has been clarified that the provisions of amended Section 93 would apply to all Units holding Eligibility and Entitlement Certificates effective from 1st April 2005, even when such certificates were issued before 1st April 2005. In case such certificates were issued after 1st April 2005, the provisions of section 93 would be applicable from the date of effect mentioned in the certificate.

Source : Maharashtra State Gazette dated 27th August 2009.