Mah. mvat act.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2012 Reduction of sale price for levy of tax u/r. 57.
Whether reduction u/r. 57 is allowable from the gross receipt of works contract, where in composition tax is not seperately charged?

In rule 57 word used is 'Sales tax' is payable where as definition of tax says that it includes sales tax and composion tax payable.

Sect. 42 relate to composion of tax, word used is tax payable, but word sales tax is not used.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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17 April 2012 Mr Author,
In sec42 also the term tax means sales tax only or VAT under composition scheme.
If in the bill composition tax is not charged ,but, marked as inclusive of tax/vat then only the rule 57 can be applied....MJK

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2012 Sect. 2(29) of M Vat Act defines "tax" which includes sales tax and also includes any amount payable by way of composition. Thus Sales tax & composition amount payable are two different levies, which are included in definition of TAX.
In Sect. 42 the wording used is 'tax payable by the dealer', but does not say "sales Tax payable".
In rule 57, for reduction of sale price for levy of tax the wording used is..."on which SALES TAX is payable. In rule 57 the word tax or amount payable as composition is not used but only SALES TAX is used. Kindly confirm the position, related to VAT Act, applicable in Maharashtra.

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