THE MAHARASHTRA SALES TAX ON THE TRANSFER OF THE RIGHT TO USE ANY GOODS FOR ANY PURPOSE ACT, 1985

CHAPTER I-PRELIMINARY

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT:-

(1) This Act may be called the Maharashtra Sales Tax on the Transfer of the Right to use any Goods for any Purpose Act, 1985.

(2) It extends to the whole of the State of Maharashtra.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

SECTION 02: DEFINITIONS –

In this Act, unless the context otherwise requires,

(1) "appointed day" means the date of commencement of this

(2) "Bombay Sales Tax Act" means the Bombay Sales Tax Act,

(3) "Commissioner" means the person appointed to be the Commissioner of Sales Tax under the Bombay Sales Tax Act;

(4) "dealer" means any person who whether for commission, remuneration or otherwise transfers the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and includes the State Government or the Central Government which so transfers the right to use such goods and also any society, club or association of persons which so transfers the right to use such goods to its members.

Explanation.-In respect of the transfer of the right to use 1[***] video cassettes, the person who transfers such right to the exhibitor or user and from whom exhibitor or user derives the right to make such use shall be deemed to be the dealer under this clause;

(5) "goods" means all kinds of moveable property (not being newspapers, or actionable claims or money, or stocks, shares or securities);

(6) "person" includes any company or body of individuals, whether incorporated or not, and also a Hindu undivided family, a firm and a local authority;

(7) "prescribed" means prescribed by rules;

(8) "registered dealer" means a dealer registered under section 7;

(9) "rules" means rules made under this Act;

(10) "sale" means the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or any other valuable consideration, and the word "sell" with all its grammatical variations and cognate expressions, shall he construed accordingly.

Explanation: -For the purposes of this clause, the transfer of the right to use any such goods shall be deemed to have taken place in the State of Maharashtra, 1[if the goods are in the State of Maharashtra at the time of their use" irrespective of the place where the agreement for such transfer of the right to use such goods is made, and whether the. assent of the party is prior or subsequent- to such transfer of the right to use any such goods;

11) "sale price" means the amount of valuable consideration received or receivable for the transfer of the right to use any goods for any purpose (whether or not for a specified period);

(12) "Schedule" means the Schedule appended to this Act;

(13) "State" means the State of Maharashtra;

(14) "tax" means a tax payable under this Act;

(15) "turnover of sales" means the aggregate of the, amounts of sale price received or receivable during a year by a dealer in respect of the transfer of the right to use, any goods, 2[specified in the Schedule] and includes any advance received by a dealer as a part of sale price;

1. The words "Cinematographic films or" deleted by Mah. 9 of 1987. S. 2. w.e.f. 1-10-1986.

2. The words "if the goods are in the State of Maharashtra at the time of their use" inserted by Mah. 23 of 1986, S. 2(a).

(16) "year",

(a) means the financial year;

(b) in relation to any particular registered dealer for the purposes of this Act (except sections 5 and 7), means the year by reference to which the accounts of that dealer are ordinarily maintained.,- in his books, but the dealer may by written declaration made by him in this behalf opt for the financial year:

Provided that, where an option has once been exercised by a registered dealer, he shall not, except with the consent of the Commissioner and upon such conditions as the Commissioner may determine, make any variation in respect thereof.

CHAPTER II INCIDENCE AND LEVY OF TAX

SECTION 03: INCIDENCE OF TAX. :

Subject to the provisions contained in this Act and the rules made there under a tax shall be leviable on the turnover of sales in respect of

(i) the transfer of the right to use any goods agreed to before the appointed day but the right to use is exercised on or after the appointed day;

(ii) the transfer of right to use any goods agreed to prior to the appointed day, and wherein the right to use has been continued after the appointed day, to the extent of the sale price received or receivable in respect of such use on or after the appointed day; and

(iii) the transfer of right to use any goods agreed to on or after the appointed day.

SECTION 04: LEVY OF TAX

There shall be levied a tax on the turnover of sales in respect of the transfer of the right to use goods specified in the Schedule, at such rate not exceeding fifteen paise in the rupee, as the State Government may; by notification in the Official Gazette, specify from time to time; 1[and different rates may be specified for different goods specified in the Schedule].

These words were added by Mah. 23 of 1986, S. 3.

3[Provided that for Computation of such turnover of sales, the turnover related to the goods 2[in respect of which tax under the Bombay Sales Tax Act, 1959 has been paid on any earlier transaction, shall not be taken into consideration.]

3[Provided further that in computing the tax payable by a dealer under this section on the turn over of sales tax already paid in to the government Treasury on the turnover of Sales of the same goods at an immediate preceding stage shall be, set off against the tax so payable subject to the rules.]

SECTION 05: LIABILITY OF DEALER

(1) Every dealer whose turnover of all sales made during

(i) the year ending on the 31st day of March 5[1986].

(ii) the year commencing on the lst day of April 5[1986] has exceeded or exceeds the limit of fifty thousand rupees shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act on the turnover of sales on or after the appointed day:

Provided that, a dealer to whom clause (ii) applies and whose turnover of all sales exceeds the limit of fifty thousand rupees after the appointed day shall not be liable to pay tax in respect of sales which take place up to the time when his turnover of sales as computed from the lst day of April 5[1986] first exceeds such limit.

(2) Every dealer whose turnover of sales during any year commencing on the I st day of April, being a year subsequent to the years mentioned in sub-section (1) first exceeds the limits of rupees fifty thousand shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the said date:

Provided that, a dealer shall not be liable to pay tax in respect of such of the sales as take place during the period commencing on the lst day of April of the said year up to the time when his turnover of sales as computed from the 1st day of April of the said year first exceeds the limit of rupees fifty thousand.

1. Added by Mah. 29 of 1994 S. 24.

2. Substituted by Mah. 19 of 1996 w.e.f. I st- May 1994.

3. Added by Mah. 16 of 1995 S. 53.

4. The figure 1986" sub. by Mah. 23 of 1986 S. 4.

(3) Every dealer who becomes liable to pay tax under this Act shall continue to be so liable until his registration certificate is duly      cancelled and upon such cancellation his liability to pay tax other than tax already levied or leviable shall until his turnover of sales again first exceeds the limit of rupees fifty thousand, cease:

Provided that, where the dealer becomes liable to pay tax again in the same year in which he ceased to be liable as aforesaid, then in respect of sales which take place during the period commencing on the date of cessation of liability to tax and 1[up to the time when] his turnover of sales first exceeds such limit, no tax shall be payable.

SECTION 06: SALES TAX PAYABLE BY DEALER:

Subject to the provisions of this Act and the rules made there under, there shall be paid by every dealer is liable to pay tax under this Act, the tax leviable in accordance with section 4 on the turnover of sales in respect of the transfer of right to use goods specified in the Schedule.

CHAPTER III- REGISTRATION

SECTION 07: CERTIFICATE OF REGISTRATION.

(1) No dealer who becomes liable to pay tax under this Act shall sell any goods unless he possesses a valid certificate of registration as provided by this Act:

Provided that it shall be lawful for the dealer to sell or continue to sell any goods if the dealer has applied for such registration within the prescribed time.

(2) Every dealer required to possess a certificate of registration shall apply in such manner, and to such authority, as may be prescribed.

(3) If the authority, after such inquiry as it deems fit, is satisfied that an application for registration is in order, it shall register the applicant and issue to him a certificate of registration in the prescribed form.

(4) The authority may, after considering any information furnished or otherwise called for or received under any provisions of this Act, amend from time to time the certificate of registration.

(5), If any person upon an application made by him has been registered as a dealer under this section, and thereafter it is found that he ought not to have been so registered under the provisions of this section, he shall be liable to pay tax on his sales made from the date on which his registration certificate took effect until it is cancelled notwithstanding that he may not be liable to pay tax under, section 5.

1. These words were substituted for the words ending on the day on which" by Mah. 12 of 1995 S.10.

(6) Where a registered dealer discontinues sales, or the turnover of sales of a registered dealer has during any year not exceeded the limit of fifty thousand rupees and. the dealer applies in the prescribed manner for cancellation of his registration certificate, the prescribed authority shall cancel the registration with effect from such date as it may fix in accordance with the rules.

(7) Where the Commissioner is satisfied that any registered dealer has discontinued sale and has failed to apply under subsection (6) for cancellation of registration certificate, the Commissioner may after giving the dealer a reasonable opportunity of being heard, cancel the registration with effect from such date as he may fix to be the date from which the registered dealer has discontinued sale:

Provided that, the cancellation of certificate of registration an application of the dealer or otherwise shall not affect the liability of the dealer to pay tax (including any penalty) due for any period up to the date of cancellation whether such tax (including any penalty) is assessed before or after the date of cancellation.

CHAPTER IV-CERTAIN PROVISIONS OF THE BOMBAY SALES TAX ACT

APPLICABLE

SECTION 08: AUTHORITIES UNDER BOMBAY SALES TAX ACT EMPOWERED TO ASSESS, RE-ASSESS, ETC., TAX UNDER THIS ACT.

(1) Subject to the other provisions of this Act and the rules made there under, the authorities for the time being empowered to asses, re-assess, collect and enforce payment of any tax under the Bombay Sales Tax Act shall assess, re-assess, collect and enforce payment of tax including any penalty payable by a dealer under this Act as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the Bombay Sales Tax Act and for this purpose they may exercise all or any of the powers they have under the Bombay Sales Tax Act, and the provisions of the Bombay Sales Tax Act relating to returns, assessment, advance payment of tax, rectification, collection, forfeiture, registration of the transferee of any dealer liable to pay tax under this Act, imposition of the tax liability of a dealer on the transferee of, or successor to, such dealer, transfer of liability of, any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, special mode of recovery of tax, appeals, revisions, references, refunds, rebates, penalties, charging or payment of interest, compounding of offences, and the treatment of documents furnished by a dealer as confidential, shall, mutatis mutandis, apply accordingly.(2) All the provisions relating to offences 1[charging of payment interest] and penalties (including provisions relating to penalties lieu of prosecution for an offence or in addition to the penalties punishment for an offence) of the Bombay Sales Tax Act shall mutatis matandis apply in relation to the assessment, re-assessment, collection and the enforcement of payment of the tax required to be collected under this Act or in relation to any process connected with such assessment, re-assessment, collection or enforcement of payment as if the tax payable under this Act were the tax payable under the Bombay Sales Tax Act.

SECTION 08A: 2[CERTAIN SALES NOT TO BE LIABLE TO TAX - Nothing in this Act or the rules made there under shall be deemed to impose or otherwise the imposition of a tax on any sale of any goods, where such sale takes place.

(a) (i) outside the state; or (ii) in the course of import of the goods into the territory of India or the export of the goods out of such territory; or

(b) in the course of inter-State trade or Commerce; and the provisions of this Act or-the said rules shall be real and construed accordingly.

CHAPTER V-MISCELLANEOUS AND RULES

SECTION 09: POWER OF STATE GOVERNMENT TO AMEND SCHEDULE –

The State Government may, from time to time, by notification in the Official Gazette, amend the Schedule by inserting any entry in respect of the transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration, and thereupon, the Schedule shall stand amended accordingly for the purpose of levy of tax under this Act.

1. These words were inserted and shall be deemed always to have been inserted by Mah. 21 of 1998 S.23.

2. Inserted by Mah. 12 of 1995 S. 10.

SECTION 10: POWER TO MAKE RULES –

(1) The State Government may make rules generally to carry out the purposes of this Act.

(2) in particular and without prejudice to, the generality of the power lo make rules under sub-section (1) the rules may provide for

(a) the time within which a dealer shall apply for registration under sub-section (1) of section 7;

(b) the manner in which and the authority to whom an application for registration certificate shall be made under sub-section (2) of section 7;

(c) the form of certificate of registration to be issued under subsection (3) of section 7;

(d) the manner in which an application shall be made for cancellation of registration certificate under sub-section (6) of section 7; and the-authority who shall cancel such registration certificate;

(e) any other matter which is required to be or may be prescribed.

(3) In making any rules the State Government may direct that a breach thereof shall be punishable with fine not exceeding two thousand rupees, and when the offence is a continuing one, with a daily fine not exceeding one hundred rupees during- the continuance of the offence.

(4) Rules made under this section shall be subject to the condition, of previous publication:

Provided that, if the State Government is satisfied that circumstances exist which render it necessary to take immediate action, it may dispense with the previous publication of any rule to be made under this section.

(5) Every rule made under this section shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, and notify such decision in the Official Gazette, the rule shall from the date of publication of such notification have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.