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3. Incidence of Tax M VAT ACT

 

CHAPTER II
 
INCIDENCE AND LEVY OF TAX
 

 
3.         Incidence of Tax

 
(1)      Every dealer, who, immediately before the appointed day, holds a valid or effective certificate of registration or license under any of the earlier laws or, as the case may be, who is liable to pay tax under any of the earlier laws, in the year ending immediately before the appointed day shall, if his turnover of sales or purchases has, in the said year under any of such earlier laws, exceeded rupees five lakh, or, as the case may be, if he is an importer in the said year and his turnover of sales or purchases in the said year had exceeded rupees one lakh, shall be liable to pay tax, with effect from the appointed day, in accordance with the provisions of this Act, till his certificate or licence is duly cancelled under this Act.
Explanation.—For the purposes of this sub-section, the expressions “turnover of sales”, “turnover of purchases” and “importer” shall have the respective meanings assigned to them under the relevant earlier laws.
(2) A dealer to whom sub-section (1) does not apply and whose turnover, of all sales made, during the year commencing on the appointed day or any year subsequent thereto, first exceeds the relevant limit, specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the 1st day of April of the said respective year:
Provided that, a dealer shall not be liable to pay tax in respect of such sales as take place during the period commencing on the 1st day of April of the said respective year upto the time when his turnover of sales (…), as computed from the 1st day of April of the said respective year, does not exceed the relevant limit applicable to him under sub-section (4).
(3)Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall remain ceased until his turnover of sales (…) again, first exceeds the relevant limit specified in sub-section (4) or, as the case may be, until he becomes liable to pay tax under sub-section (7), (8) or (9).
(For the above subsection (3) following subsection (3) is substituted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)
(3) Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax already levied or leviable, shall remain ceased until his turnover of sales (…) again, first exceeds the relevant limit specified in sub-section (4) or, as the case may be, until he becomes liable to pay tax under sub-section (8) or (9).
(4)For the purposes of this section, the limits of turnover shall be as follows
(a)
Limit of turnover Rs. 1,00,000.—
in the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000/-.
(b)
Limit of turnover Rs. 5,00,000.—
in any other case, where the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000.
(For the above subsection (4) following subsection (4) is substituted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)
(4) For the purposes of this section, the limits of turnover of sales shall be as follows
(a)
Limit of turnover of sales Rs. 1,00,000.—
in the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000/-.
(b)
Limit of turnover of sales Rs. 5,00,000.—
in any other case, where the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000.
(5) For the purpose of calculating the limit of turnover for liability to tax,—
(a) except as otherwise expressly provided, the turnover of all sales and purchases shall be taken, whether such sales or purchases are of taxable goods or not; 
(For the above clause 3(5)(a) the following clause is substituted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)
(a) except as otherwise expressly provided, the turnover of all sales shall be taken, whether such sales are of taxable goods or not. 
(b) the turnover of sales shall include all sales(…)made by the dealer on his own account, and also on behalf of his principals whether disclosed or not;
(In the above clause (b) for the word turnover the words “turnover of sales are substituted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)
(c) in the case of an auctioneer, in addition to the turnover, if any, referred to in clauses (a) and (b), the turnover shall also include the price of the goods auctioned by him for his principal, whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal, if the price of such goods is received by him on behalf of his principal;
(d) in the case of an agent of a non-resident dealer, in addition to the turnover, if any, referred to in clause (a), (b) or (c), the turnover shall also include the sales (…) of the non-resident dealer effected in the State.
(6) Notwithstanding anything contained in any contract or any law for the time being in force, but subject to the provisions of this Act, any person covered by sub-clauses (a), (b), or (c) of clause (8) of section 2 shall be liable to pay tax under this Act, whether or not the principal is a dealer and whether or not such principal is liable to pay tax under this Act and whether or not the principals are disclosed.
(7)Any person who at any time after the appointed day becomes liable to pay tax under the Central Sales Tax Act, 1956, but who is not liable to pay tax under the other provisions of this section shall be liable, to pay tax on the sales effected by him on and from the day on which he becomes so liable to pay tax under the Central Sales Tax Act. 1956 and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.
( The above sub-section (7) is deleted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)
(8) Where a dealer liable to pay tax under this Act is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or sub-section (4) of section 44, then such person shall, notwithstanding anything contained in this section, be liable to pay tax on the sales of goods effected by him on and after the date of such succession and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.
(9) Any person who is not liable to pay tax under the foregoing provisions of this section, but has been voluntarily registered under the provisions of this Act, shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year.”

 

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