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| BOMBAY
SALES TAX ACT 1959 |
| (Note : With
effect from 01.04.05 VAT has been introduced in the State of Maharashtra) |
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| I)
LAWS & PROCEDURE: |
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| (A) REGISTRATION UNDER
THE BOMBAY SALES TAX ACT 1959 |
|
Section 3 speaks about the incidence on the occurrence of
which a dealer becomes liable for registration under the Bombay Sales Tax
Act, 1959.
Every dealer whose turnover either of all sales or of all
purchases, made during a financial year, exceeds the specified limits, is
liable to pay tax under this act, with effect from the date on which the
turnover exceeds the prescribed limits.
The limits of turnover prescribed u/s 3(4) w. e. f.
01.07.2004 are as under
|
|
| Category of Dealer |
Total Turnover (Sales or Purchases Taxable/Tax
Free) |
Turnover of Taxable Goods |
Other conditions |
| Manufacturer |
Rs. 100,000 |
Rs. 100,000 |
Value of Goods Mfd. should
exceed Rs. 25,000
|
| Importer |
Rs. 100,000 |
Rs. 100,000 |
Value of goods imported
from out of India/ brought into the state should exceed Rs.
25000/-
|
|
Reseller-Holders of liquor Vendor Licences
Reseller-others
|
Rs. 250,000
Rs. 500,000
|
--
Rs. 10,000
|
--
--
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| VOLUNTARY REGISTRATION: |
|
Section 22(2A) of the Act provides
for voluntary registration.
A person can voluntarily register under BST Act, 1959 without having any
initial turnover subject to advance payment of Rs.5000/-which can be adjusted
against tax, interest & penalties by the dealer in the same year or
in succeeding years. Excess amount, if any shall be refunded as per provisions
of sec.43.
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| (B) SOME IMPORTANT SET OFF
PROVISIONS: |
| “On what Goods who can
claim the set off?” Sales Tax Act provides for set off of tax
paid whereby reducing tax payer's liability to pay tax. Some important provisions
under which set off is granted are as follows: |
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| RULE |
WHO CAN CLAIM SET OFF |
ON WHAT GOODS |
| 41D |
Manufacturer of goods
not being Kerosene.
|
Goods covered by
Schedule B – 6 and Schedule C except kerosene used in manufacture
of goods or used in packing of manufactured goods
|
| 41F |
Manufacturer of cotton
thread,
Goods covered by C – 1 – 14, C – 1 – 23, Bullion,
Gold and Silver Articles and Jewellery, Timber, Fertilisers
|
Other than Capital
Assets used in manufacture of goods or used in packing of
manufactured goods
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| 42C |
Any registered dealer
who sells in state of Maharashtra duty paid foreign liquor
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Non duty paid potable
foreign liquor
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| 42H |
Dealer holding a trade
mark or a patent
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Any goods on which resale
has not been allowed in view of his holding a trade mark or patent
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| 43AA |
A successor of business
of any registered dealer
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| 43C |
Registered dealer who
resold the purchased goods in the course of interstate trade or Commerce
or export or dispatches to Branch or Agent outside the state or out
of India.
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On any goods which are
resold or used in the packing of goods so resold or so dispatched
to Branch or Agent outside the state.
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| (C) IMPORTANT DUE DATES FOR
FILLING OF RETURN AND PAYMENT OF TAXES: |
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| Dealer's tax Liability during the previous
year under the BST & CST Act |
Period |
Form of Return |
Time withinwhich returnis to be filed |
| 1. Exceeding Rs.20000/-
|
Monthly |
For BST
N-18
For CST
III-B |
-
April to December 25th of succeeding month
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January-20th February
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February-20th March
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March-25th April
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| 2. Not Exceeding
Rs.20,000/- |
Quarterly |
For BST
N-18
For CST
III-B |
For the Quarter
-
April to June-25th July
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July to Sept.-25th October
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Oct to Dec.-25th January
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Jan. to March-25th April
|
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| A dealer who has obtained registration
during the year has to file quarterly return irrespective of his tax liability.
In addition to the above yearly/monthly returns, dealers have to file Annual
return as under: |
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| Dealer's tax liability During the year under
the BST & CST Act |
Period |
Form of Return |
Time withinwhich returnis to be filed |
| 1. Not exceeded Rs.1 Lakh
during the year |
Yearly |
For BST
N-18A
For CST
III-(BB) |
Within 6 months from the
end of the year |
| 2. Exceeded Rs.1 Lakh |
Yearly |
For BST
N-18B
For CST
III-(BB) |
Within 6 months from the
end of the year |
| 3. A Dealer who has granted
a certificate of entitlement |
Yearly |
For BST
N-18C
For CST
III-(BB) |
Within 6 months from the
end of the year |
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| II)
RATES OF TAX: |
| Rates at which the dealer
is entitled to collect tax on his sales and pay to the Govt. is prescribed
in the following schedules. |
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| Schedule |
Types of Goods |
Rate of Tax |
| A |
Goods of prime importance |
NIL |
| B |
Declared goods,i.e.goods of special importance |
Upto 4% |
| CI |
Other Goods |
1/2% to 4% |
| CII |
Other Goods |
4% & more |
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|
Above scheduled rate of tax
is to be increased by 10% surcharge u/s 15IA w.e.f. 01.04.1999. Turnover
Tax is to be collected over and above the scheduled rate of tax on sale
of goods specified in schedule `C’ only. The rate of Turnover
Tax is 1% where annual sales tax liability is less than Rs. 1 crore and
1.5% where the liability exceeds Rs.1 crore
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| III)
SOME IMPORTANT FORMS UNDER THE BST ACT AND RULES: |
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| FORM NO. |
PARTICULARS |
| 1 |
APPLICATIONS FOR REGISTRATION
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| 4 |
APPLICATION FOR AUTHORISATION,
PERMIT
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| 4A |
BOND FOR SURETY FOR OBTAINING
DOCUMENTS/C FORM DUPLICATE
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| N - 8A |
SPECIMEN SIGNATURE OF
DOCUMENT HOLDER
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| N - 8AA |
SPECIMEN SIGNATURE OF
DEALER DEALING IN ITEMS DECLARED U/S 8A
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| 19 |
APPLICATION FOR PERMISSION
TO FILE RETURN FOR DIFFERENT PERIODS
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| 21 |
APPLICATION FOR FILING
CONSOLIDATED RETURNS FOR DIFFERENT PLACES OF BUSINESS
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| 23 |
FOR EXEMPTION FROM FILING
RETURNS
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| 35 - B |
APPLICATION FOR REFUND
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