Exemption to Salaried Individuals from Filing Income Tax Return FY 2011-12 AY 2012-13

For Assessment Year 2012-13, Central Government has extended the scheme to exempted Individual Assesses from filing Income Tax Return u/s.139(1) of the Income-tax Act; subject to following conditions:

1. Applicable to Individuals only. 
2. Total income does not exceed Rs.5 lakh,
3. Total Income consists only a) Income form Salary and b)Interest for Saving bank account  not exceeding Rs.10,000/-. The assessee must have no other income.
4. Assessee has reported his PAN to his employer and also reported to his employer amount of interest received in saving bank account, 
5. The employer has deducted the tax thereon,
6. Assessee has received Form 16 from his employer stating PAN no of asseessee, details of income, tax deducted thereon and details of tax credited to account of Central Goverment,
7. Assessee has no refund/tax liability,
8. Assessee has received salary from one employer only,

Total income means income arrived after allowing deduction u/c. VI-A, i.e deduction u/s.80C, ……….. and like

Exemption is available to individual assesses only.

The Scheme was first introduced for F.Y. 2010-11 i.e. A.Y. 2011-12. This is second year of notification of exemption. The government issues notification on yearly basis. 

Exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

NOTIFICATION NO. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012

Goa Election Day Public Holiday on 3rd March, 2012

The Goa government has declared 3-3-2012 as a holiday as it is polling day for the general elections to the Goa legislative assembly. (03-03-2012)

Notification No. 2/2/2010-GAD-III

In exercise of the powers conferred by the explanation to Section 25 of the Negotiable Instru­ments Act, 1881 (Act 26 of 1881) read with Section 135B of the Representation of the People Act, 1951 (Central Act 43 of 1951), the Government of Goa hereby declares Saturday, the 3rd March, 2012 (Phalguna 13, 1933) as a "Public Holiday" being the "Polling day" for the General Elections to the Goa Legislative Assembly, 2012, throughout the State of Goa. The aforesaid holiday shall be a "paid holiday"; in addition to the holidays indicated in the Notification No. 2/1/2011-GAD-H dated 03-10-2011, published in the Official Gazette, Series II No. 27 dated 07-10-2011, to the establish­ments as detailed below:

1. industrial workers of the State of Goa;
2. daily wage workers of the Government Departments and State Government Industrial Departments;
3. commercial and industrial workers of private establishments in the State of Goa;
4. all private establishments;
5. daily wage/casual workers employed in any business, trade, industrial undertakings or any other establishments.

By order and in the name of the Governor of Goa.
Prabhakar V. Vaingankar, Under Secretary (GA).
Porvorim, 31st January, 2012.

Panji

Notification for TDS On MVAT

Notification specifies Class of Employers whether registered or not registered under MVAT Act who are required to deduct tax while making payment to contractors toward works contract executed by them. Notification also gives rate of tax to be deducted. No deduction shall be made where the amount or the aggregate of the amounts payable to a dealer by such employer is less than rupees 5 lakh during any year, except in case of co-operative housing society mentioned in Sr. No. 9.For detail rules and provisions of MVAT see link>> TDS on Works Contract In Maharashtra

NOTIFICATION

Commissioner of Sales Tax, Maharashtra State,Vikrikar Bhavan, Mazgaon, Mumbai, Dated the 29th August, 2005. Maharashtra Value Added Tax Act, 2002.

No.JC(HQ)1/VAT/2005/97 In exercise of the powers conferred by sub clause (i) of clause (b) of sub section(1) of section31 of the Maharashtra Value Added Tax Act, 2002 (Mah.IX of 2005), and in supersession of Notification, issued by the Commissioner of Sales Tax No.VAT1505/CR123/Taxation-1, dated the 1st April, 2005, Commissioner of Sales Tax, Maharashtra State, Mumbai, hereby, notifies the classes of employers specified in column (2) of the, Schedule appended hereto, to be the employers liable to deduct the tax or such amount of tax specified in column (3) of the said Schedule, from and out of the amount payable, excluding the amount of tax, if any, separately charged by the contractor, by the said employer to a dealer to whom a works contract has been awarded.

SCHEDULE

Serial No.	Classes of Employers	Amount to be deducted
(1)	(2)	(3)
(1)	The Central Government and any State Government,	Two percent of the amount payable as above in the case of a contractor who is a registered dealer and four† percent in any other case.
(2)	All Industrial, Commercial or Trading undertakings, Companies or Corporations of the Central Government or of any State Government, whether setup under any special law or not, and a Port Trust setup under the Major Ports Act, 1963,	-- do --
(3)	A Company registered under the Companies Act,1956,	-- do --
(4)	A local authority, including a Municipal Corporation, Municipal Council, Zilla Parishad, and Cantonment Board,	-- do --
(5)	A Cooperative Society excluding a Cooperative Housing Society registered under the Maharashtra Cooperative Societies Act, 1960,	-- do --
(6)	A registered dealer under the Maharashtra Value Added Tax Act, 2002.	-- do --
(7)	An Insurance or Financial Corporation or Company; and any Bank included in the Second Schedule to the Reserve Bank of India Act,1934, and any Scheduled Bank recognised by the Reserve Bank of India.	-- do --
(8)	Trusts, whether public or private	-- do --
(9)	A Cooperative Housing Society registered under the Maharashtra Cooperative Societies Act, 1960 which has awarded contracts of value aggregating to rupees 10 lakh or more in the previous year or as the case may be, in the current year.	-- do --

Note: No deduction shall be made where the amount or the aggregate of the amounts payable to a dealer by such employer is less than rupees 5lakh during any year.

(B. C. KHATUA )

Commissioner of Sales Tax Maharashtra State, Mumbai.

† Five w.e.f. 1-4-2012 vide Notification No. JC(HQ)1/VAT/2005/97 Dated 4th April 2012

TDS on Works Contract In Maharashtra

Notification for TDS On MVAT

Section 31 of Maharashtra Value Added Tax Act, 2002 (MVAT, 2002) lays provision for Deduction of Tax At Source (TDS under MVAT) on payments made for transaction covered under MVAT Act.

u/s.31(1) Commissioner is empowered to issue notification requiring dealers (registered or not registered) or any person to deduction tax or such amount of tax as specified in the notification. Tax is to deducted on such purchase as may be notified. Tax cannot be deducted on purchase exempted from MVAT u/s.8 of MVAT Act.

u/s.31(2) Commissioner is empowered to issue notification requiring any class of employer (registered or not registered under MVAT Act) to deduct tax (TDS under MVAT) on amount paid to dealer to whom the employer has awarded works contract and payment is made towards execution of works contract.

• The tax is to be deducted on amount paid after excluding amount of tax or service tax levied by the Government of India on such contract by the contractor.
• Quantum of such deduction shall not exceed the quantum of tax payable towards such works contract.
• No deduction shall be made from any payment made to any sub-contractor by a principal contractor where the principal contractor has assigned the execution of any works contract, in whole or in part, to the said sub-contractor.
• no deduction shall be made in respect of any sale or purchase to which section 8 applies. Sec.8 applies to sale and purchase outside the state, or in course of import or export into or out of territory of India,  or in course of interstate trade, or sale to unit in Special Economic Zone, Software Technology Park, Electronic Hardware Technology Park, or Certified Export Oriented Unit, etc.
• Where any payment in the nature of an advance payment towards the execution of a works contract is made by an employer to a dealer/contractor and such amount is adjustable against the total contract value payable to the said dealer, then, for the purposes of this clause, the advance payment shall be deemed to be the amount paid towards the execution of the works contract only as and when such advance payment is adjusted, in part or otherwise, against the total amount payable towards the works contract.

PAYMENT OF TAXES DEDUCTED

• The Employer who is required to deduct tax under clause (b) of sub-section (1)of section 31 shall within 21 days from the expiry of the month during which tax is so  required to be deducted, remit the full amount of such tax due and deductible in challan in Form 210 into the Government Treasury irrespective of the actual amount of tax deducted by him, from such dealer. 
• If the Employer does not deduct or after deducting fails to pay the tax as required by this section, he shall be deemed not to have paid the tax within the time he is required by or under the provisions of this Act to pay it and all the provisions of this Act including the provisions relating to interest shall apply mutatis mutandis to such unpaid tax.
• The employer required to remit tax, shall furnish a certificate in Form 402 in respect of the amount so remitted immediately after the deduction is made, to the dealer in respect of whom such deduction is made. 
• Any employer issuing a certificate in Form 402 shall maintain for each year a separate account in Form 404 showing the amount of tax deducted, certificate of tax deduction issued, and the particulars of remittances made to the Government treasury and shall file a return in Form 405 with the Joint Commissioner of Sales Tax (Returns), in Mumbai or as the case may be the Joint Commissioner of Sales Tax (VAT Administration) in the rest of the State of Maharashtra in whose jurisdiction the place of business of the employer is situated within three months of the end of the year to which the return relates.
  
  Notification has been issued by Commissioner (No.JC(HQ)1/VAT/2005/97 dt.29-8-2005) requiring 9 Classes of Employers to deduct tax on payment made for Works Contract to Contractors. Tax is to be deducted only when  aggregate of the amounts payable to a dealer by such employer is less than rupees 5 Lakh during any year. However in case of Co-operative Housing Society which has awarded contracts of value aggregating to rupees 10 lakh or more in the previous year or as the case may be, in the current year is also required to deduct tax on such payments.
  Amount to be deducted: Two percent of the amount payable as above in the case of a contractor who is a registered dealer and four percent in any other case.
  
  

16th Feburary 2012, Election in Mumbai

On account of Municipal election in Mumbai; Maharashtra Government has vide notification no. MIS/2012/CR-47/2012/XXIX declared 16th February, 2012 as Public Holiday/Holiday under Section 25 of Negotiable Instrument Act,  in Mumbai.

16-2-2012

Form 704 Annexure J2

Form 704 Annexure J2, first and last page
Similar form J2 may be required to be filed by non audit dealers


see Annual Statement/Details to be filed under MVAT by non-audit dealer

e 704 annexure j2

Form 704 Annexure J1

Form 704 Annexure J1, first and last page
Similar form J1 may be required to be filed by non audit dealers

see Annual Statement/Details to be filed under MVAT by non-audit dealer

e-707 Anexure J1
Annexure J1 is for giving details of sales made in Maharashtra against which MVAT is charged. The dealer is required to give annual figures of sales to customers.

Form 4 for Retailers

Form 4 for Retailers opting for Composition Scheme under section 42 of Maharashtra Value Added Tax Act, 2002  (MVAT Act, 2002.)

Form 3 for Bakers

Form 3 to be filed by Bakers opting for Composition scheme under section 42 of Maharashtra Value Added Tax Act, 2002. (MVAT Act, 2002)

Form 2 For Caterers

Form 2 for Caterers opting for Composition Scheme u/s42 of Maharasthra Value Added Tax Act, 2002. (MVAT Act, 2002.

COMPOSITION SCHEME FOR RESTAURANTS, HOTELS, CATERERS, ETC., UNDER MVAT Act, 2002.

VAT Composition Scheme for Retailers under MVAT

COMPOSITION SCHEME FOR RESTAURANTS, HOTELS, CATERERS, ETC., UNDER MVAT Act, 2002.

Composition scheme under VAT regime can be said to be a simplified scheme for calculating, charging, collection and payment of sales/vat tax. The basic idea of introducing the scheme is to enable small business men in resale and retails business to carry business without maintaining detailed accounts, enabling easy calculation of tax payable by them. This saves them from rigors of regular scheme under MVAT law.

Section 42(1) of Maharashtra Value Added Tax Act, 2002 (MVAT, 2002)  empowers State Government to Notify Composition Scheme for dealers in State of Maharashtra who are engaged in business of resale and retail. State Government has notified Composition Scheme vide notification No. VAT-1505/CR-105/Taxation-1 dated 1st June 2005 and amended form time to time.     

Separate scheme have been notified in the above mentioned notification as applicable to:

1. Restaurants, Eating House, Refreshment Room, Boarding Establishment, Factory Canteen, Clubs, Hotels and Caterers
2. Bakers
3. Retailers
4. Dealers in Second-hand Motor Vehicles

Scheme for Restaurants, Eating House, Refreshment Room, Boarding Establishment, Factory Canteen, Clubs, Hotels and Caterers.

What are class of Sale and Purchase eligible for the Composition Scheme:

• aggregate of sales of food and nonalcoholic drinks, not being food, alcoholic and nonalcoholic drinks served for consumption in any restaurant or hotel or any part thereof having gradation of "Four Star " and above or supplied by such restaurant, or hotel, 
• served for consumption at or in the immediate vicinity of any restaurant, hotel, eating house, refreshment room, boarding establishment, factory canteen or in any club or 
• supplied by way of counter-sale by such restaurant, hotel, eating house, refreshment room or boarding establishment or club, or 
• served for consumption at any place other than a restaurant, hotel, eating house, refreshment room boarding establishment factory canteen, or any club by a caterer.

Composition amount (Tax Payable):
The composition amount shall be:

• 5% from 1-7-2009 (8 % before)  of the turnover of sales in the case of a registered dealer and 10 per cent of the turnover of sales in the case of an unregistered dealer. 
• Where the dealer is also serving alcoholic drinks, the tax payable on sales of alcoholic drinks will not be compounded under this notification but the tax payable on sales by such dealer of food and nonalcoholic drinks will be allowed to be compounded under this notification.

Conditions in which this scheme will be applicable:

1. The claimant dealer shall not be entitled to claim any set off under the MVATax Rules, 2005, in respect of the purchases corresponding to any goods which are sold or resold or used in packing of goods referred above. 
2. The claimant dealer shall not collect tax including composition amount separately in the bill, cash memo or invoice issued to the customer. 
3. From 1-7-2009, the claimant dealer shall apply in the form-2 in respect of caterers and in the ‘Form-1’ in case of others dealers to Joint Commissioner  of Sales Tax (Registration) in case of dealers in Mumbai and in other cases to Joint Commissioner of Sales Tax (VAT Administration).
4. The Claimant dealer is not eligible to issue ‘Tax Invoice’ in respect of sales of goods referred above. 
5. If the Claimant dealer opts for the composition scheme on or after 1-7-2009 but on or before 30-9-2009 then he shall be eligible to pay tax under the composition scheme w.e.f. 1-7-2009.
6. if newly registered dealer opts for composition scheme within one month of obtaining registration certificate, then the scheme will be available form date of registration.
7. if dealer opts for the scheme after 1st April, then the scheme will be available from next financial year.

Form 1

See Terminology of terms used under MVAT Act, 2002 for meaning of resale, importer, manufacture, registered dealer, tax free goods,

Due dates for filing Vat Returns-Maharashtra.

Interest Payable by Dealer under MVAT Act and Rate of Interest
Composition Scheme for Work Contract In Maharashtra Value Added Tax 2002 (MVAT Act, 2002)

MVAT Payable in Case of Works Contract

MVAT/Sales Tax Payable on Works Contract carried out in Maharashtra. (Works Contract VAT/Sales Tax in Maharasthra and calculating Works Contract Sale Price)

Rule 58(1) Sale Price in case of any Work Contract, Rule 58(1A) Sale Price in case of Construction Contract, 

Section 6 of Maharashtra Value Added Tax, 2002 empowers levy of sales-tax on the turnover of sales of goods specified in column (2) in Schedule B, C, D or, as the case may be, E, at the rates set out against each of them in column (3) of the respective Schedule.

Sales-tax/VAT is payable on turnover of sales. Turnover of sale is aggregate amount of sale price. Determine of Sale price is important issue in Works Contract; as, only transfer of property in goods can be subject to sales-tax/MVAT  and not any other contents of cost such as labour. State Governments have constitutional power to levy sales-tax only on transfer of property in goods.

Determining Sale price in case of Works-Contract has been riddle with confusing, controversies and subject to litigation. To reduce these issues Rule 58 of MVAT Rules describes how Sale Price and Purchase Price in case of Works-Contract is to be determined. 

Rule 58(1) Sale Price in case of any Contract: the value of the goods at the time of the transfer of property in the goods (whether as goods or in some other form) involved in the execution of a works contract may be determined by effecting the following deductions from the value of the entire contract, in so far as the amounts relating to the deduction pertain to the said works contract:-

1. labour and service charges for the execution of the works; 
2. amounts paid by way of price for sub-contract, if any, to sub-contractors; 
3. charges for planning, designing and architect's fees; 
4. charges for obtaining on hire or otherwise, machinery and tools for the execution of the works contract; 
5. cost of consumables such as water, electricity, fuel used in the execution of works contract, the property in which is not transferred in the course of execution of the works contract; 
6. cost of establishment of the contractor to the extent to which it is relatable to supply of the said labour and services; 
7. other similar expenses relatable to the said supply of labour and services, where the labour and services are subsequent to the said transfer of property; 
8. profit earned by the contractor to the extent it is relatable to the supply of said labour and services: 
9. where the contractor has not maintained accounts which enable a proper evaluation of the different deductions as above, or where the Commissioner finds that the accounts maintained by the contractor are not sufficiently clear or intelligible, the contractor or, as the case may be, the Commissioner may in lieu of the deductions as above provide a lump sum deduction as provided in the Table below and determine accordingly the sale price of the goods at the time of the said transfer of property.

TABLE

Sr. No.	Type of Works Contract	*Amount to be deducted from the contract price (expressed as a percentage of the contract price)
1.	Installation of plant and machinery	15%
2.	Installation of air conditioners and air coolers.	10%
3.	Installation of elevators (lifts) and escalators.	15%
4.	Fixing of marble slabs, polished granite stones and tiles (other than mosaic tiles).	25%
5.	Civil works like construction of buildings, bridges, roads, etc.	30%
6.	Construction of railway coaches on under carriages supplied by Railways.	30%
7.	Ship and boat building including construction of barges, ferries, tugs, trawlers and dragger.	20%
8.	Fixing of sanitary fittings for plumbing, drainage and the like.	15%
9.	Painting and polishing.	20%
10.	Construction of bodies of motor vehicles and construction of trucks.	20%
11.	Laying of pipes.	20%
12.	Tyre re-treading.	40%
13.	Dyeing and printing of textiles.	40%
14.	Annual Maintenance contracts.	40%
15.	Any other works contract.	25%

*Note : The percentage is to be applied after first deducting from the total contract price, the quantum of price on which tax is paid by the sub-contractor, if any, and the quantum of tax separately charged by the contractor if the contract provides for separate charging of tax..

Rule 58(1A) Sale Price in Case of Construction Contract: 

• In case of a construction contract, where along-with the immovable property, the land or, as the case may be, interest in the land, underlying the immovable property is to be conveyed, and the property in the goods (whether as goods or in some other form) involved in the execution of the construction contract is also transferred to the purchaser such transfer is liable to tax under this rule. The value of the said goods at the time of the transfer shall be calculated after making the deductions under sub-rule (1) and the cost of the land from the total agreement value.
• The cost of the land shall be determined in accordance with the guidelines appended to the Annual Statement of Rates prepared under the provisions of the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995, as applicable on the 1st January of the year in which the agreement to sell the property is registered:
• However the deduction towards cost of land under this sub-rule shall not exceed 70% of the agreement value.

The value of goods so arrived at under sub-rule(1) shall, for the purposes of levy of tax, be the sale price or, as the case may be, the purchase price relating to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.

Composition Scheme for Work Contract In Maharashtra Value Added Tax 2002 (MVAT Act, 2002)

Income tax Slab Rates for Assessment Year (A.Y.) 2012-13 i.e. Financial Year (F.Y.) 2011-12

see for  Income tax Slab Rates for Assessment Year (A.Y.) 2013-14 i.e. Financial Year (F.Y.) 2012-13

Income tax Slab Rates for Assessment Year (A.Y.) 2012-13 i.e. Financial Year (F.Y.) 2011-12
1. For Individual (other then Individuals being resident of India and above 65 years of age), Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person:

i	where the total income does not exceed Rs. 1,80,000	Nil;
ii	where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 5,00,000	10 per cent. of the amount by which the total income exceeds Rs. 1,80,000;
iii	where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 8,00,000	Rs. 32,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 8,00,000;
iv	where the total income exceeds Rs. 8,00,000	Rs.92,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 8,00,000.

2. In the case of every individual, being a woman resident in India, and below the age of sixty years at any time during the previous year,.-

i	where the total income does not exceed Rs. 1,90,000	Nil;
ii	where the total income exceeds Rs. 1,90,000 but does not exceed Rs. 5,00,000	10 per cent. of the amount by which the total income exceeds Rs.1,80,000;
iii	where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 8,00,000	Rs. 31,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 8,00,000;
iv	where the total income exceeds Rs. 8,00,000	Rs. 91,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 8,00,000.

3. In the case of every individual, being a resident in India, who is of the age of sixty years or more but less then eighty years at any time during the previous year,—

i	where the total income does not exceed Rs. 2,50,000	Nil;
ii	where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000	10 per cent. of the amount by which the total income exceeds Rs. 2,50,000;
iii	where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 8,00,000	Rs. 25,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
iv	where the total income exceeds Rs. 8,00,000	Rs. 85,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 8,00,000.

4. In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, —

i	where the total income does not exceed Rs. 5,00,000	Nil;
ii	where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 8,00,000	20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
iii	where the total income exceeds Rs. 8,00,000	Rs. 60,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

5. In the case of every co-operative society, —

i	where the total income does not exceed Rs. 10,000	10 per cent. of the total income;
i	where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
iii	where the total income exceeds Rs. 20,000	Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000.

6. In the case of every firm,—

1.

On the whole of the total income

30 per cent.

7. In the case of a company,—

i	In the case of a domestic company	30 per cent. of the total income;
ii	In the case of a company other than a domestic company
	(i) on so much of the total income as consists of,—      (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976;               (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government	50 per cent.;
	(ii) on the balance, if any, of the total income	40 per cent.

Surcharge on income-tax

        The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or in section 111A or section 112, shall, in the case of every company, be increased by a surcharge for purposes of the Union calculated,—

        (i) in the case of every domestic company having a total income exceeding one crore rupees, at the rate of five per cent. of such income-tax;

        (ii) in the case of every company other than a domestic company having a total income exceeding one crore rupees, at the rate of two per cent. of such income-tax:

        Provided that in the case of every company having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.