¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

L. A. BILL No. XV OF 2018.

A BILL

further to amend certain tax laws in operation in the

State of Maharashtra.

WHEREAS it is expedient further to amend certain tax laws in operation

in the State of Maharashtra, for the purposes hereinafter appearing ; it is

hereby enacted in the Sixty-ninth Year of the Republic of India as follows :—

CHAPTER I

PRELIMINARY.

(1) This Act may be called the Maharashtra Tax Laws (Levy and

Amendment) Act, 2018.

Short title

and

commence-

ment.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ

+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ--+

´É¹ÉÇ 4, +ÆEòú 8(2)]

MÉÖ¯ûý´ÉÉ®ú, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

[{ÉÞ¹`ä 10, ËEò¨ÉiÉ : ¯û{ÉªÉä 36.00

+ºÉÉvÉÉ®úhÉ Gò¨ÉÉÆEòú 15

|ÉÉÊvÉEÞòiÉ |ÉEòÉ¶ÉxÉ

¨É½þÉ®úÉ¹]Åõ Ê´ÉvÉÉxÉºÉ¦ÉäiÉ ´É ¨É½þÉ®úÉ¹]Åõ Ê´ÉvÉÉxÉ{ÉÊ®ú¹ÉnäùiÉ ºÉÉnù®ú Eäò±Éä±ÉÒ Ê´ÉvÉäªÉEäò (<ÆOÉVÉÒ +xÉÖ´ÉÉnù).

MAHARASHTRA LEGISLATURE SECRETARIAT

The following Bill was introduced in the Maharashtra Legislative Assembly on the

22nd March 2018 is published under Rule 117 of the Maharashtra Legislative Assembly

Rules :—

RNI No. MAHBIL /2009/40123

(1)

¦ÉÉMÉ {ÉÉSÉ-+-15-1

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

(2) Save as otherwise provided in this Act, it shall come into force with

effect from the 1st April 2018.

CHAPTER II

AMENDMENTS TO THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADES,

CALLINGS AND EMPLOYMENTS ACT, 1975.

In section 3 of the Maharashtra State Tax on Professions, Trades,

Callings and Employments Act, 1975 (hereinafter, in this Chapter, referred

to as “the Profession Tax Act”), in sub-section (2), after the words “Every

person” the words and figures, “including limited liability partnership,

registered under the Limited Liability Partnership Act, 2008 but” shall be

inserted.

After section 4B of the Profession Tax Act, the following section

shall be inserted, namely :—

“4C.

(1) The State Government may, from time to time, by

notification published in the Official Gazette and subject to such

conditions and restrictions as may be specified therein, require any

notified person or class of persons (hereinafter, in this section referred

to as “tax collector”), who is eligible to receive any amount towards supply

of goods or, as the case may be, supply of services or towards any other

purposes, to collect an amount towards tax from an enrolled person or a

person, liable to be enrolled.

(2) The tax collector shall pay such amount into the Government

Treasury in the manner specified in the notification. The amount so paid

under this section shall be deemed to have been paid on behalf of such

person, from whom the said amount by way of tax is collected.

(3) All the provisions under the Act, related to an employer and

employee, shall mutatis mutandis apply to the person liable to

collect the tax and the person from whom such tax is collected under

sub-section (1).”.

In section 8 of the Profession Tax Act, for sub-section (3), the following

sub-sections shall be substituted, namely :—

“(3) The State Government may, by notification published in

the Official Gazette, subject to such conditions and restrictions, as

may be specified therein, provide a scheme for payment of tax, in

advance, at the rate, which shall be lower than the rate applicable

to an enrolled person under Schedule I.

(3A) The liability of such enrolled person, who has paid

such amount in advance, as per the notification issued under

sub-section (3) shall not be varied due to any increase or decrease

in the rate of tax, as provided in Schedule I.”.

Amendment

of section 3 of

Mah. XVI of

1975.

Mah.

XVI of

1975.

6 of

2009.

Insertion of

new section

4C in Mah.

XVI of 1975.

Collection

and payment

towards tax.

Amendment

of section 8 of

Mah. XVI of

1975.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

For section 11 of the Profession Tax Act, the following section shall

be substituted, namely :—

“11.

The provisions of the Maharashtra Goods and Services Tax

Act, 2017 regarding recovery of tax shall, mutatis mutandis apply for

the recovery of dues under this Act.”.

In section 12 of the Profession Tax Act, in sub-section (1), in

clause (b), for the words “and Profession Tax Officers” the words and brackets

“,Profession Tax Officers and such other officers and persons (with such

designation) as the State Government thinks necessary” shall be substituted.

After section 26 of the Profession Tax Act, the following section shall

be inserted, namely :—

“26A.

(1) The Commissioner may, if he considers that for the

purposes of better administration of this Act, it is necessary so to do, he

may, by notification in the Official Gazette, direct that statistics be

collected relating to any matter dealt with, by or in connection with this

Act.

(2) Upon such direction being given, the Commissioner or any

officer, authorized by the Commissioner in this behalf, may, by

notification in the Official Gazette and if found necessary by notice in

any newspaper or in such other manner as in the opinion of the

Commissioner or the said officer, is best suited to bring the notice to the

attention of persons, call upon all persons to furnish such information

or returns, as may be specified therein, relating to any matter in respect

of which statistics is to be collected. The form in which the officers to

whom, such information or returns should be furnished, the particulars

which they should contain and the period specified in the notification,

within which such information or returns should be furnished, shall be

such as may be specified therein.

(3) Any person, who fails to furnish information as provided in this

section within the period specified in such notification, shall be liable to

pay, by way of penalty, a sum not exceeding rupees ten thousand and in

case of continuing default, for a period beyond two months, a further

penalty of rupees one hundred for every day of such continuance.”.

In the SCHEDULE I appended to the Profession Tax Act,—

(1) after entry 18, the following entry shall be inserted, namely :—

“18A. Limited liability partnership,

2,500 per

registered under the Limited Liability

annum.” ;

Partnership Act, 2008.

(2) for entry 19, the following entry shall be substituted, namely :—

“19.

(a) Each partner of a firm (whether

2,500 per

registered or not under the Indian

annum.

Partnership Act, 1932),

(b) Each partner of a limited liability

2,500 per

partnership, registered under the

annum.”.

Limited Liability Partnership

Act, 2008,

engaged in any profession, trade or

calling.

Amendment

of section 11

of Mah. XVI

of 1975.

Recovery of

tax.

Amendment

of section 12

of Mah. XVI

of 1975.

Insertion of

new section

26A in Mah.

XVI of 1975.

Power to

collect

statistics.

Mah.

XLIII of

2017.

Amendment

SCHEDULE I

of Mah. XVI

of 1975.

6 of

2009.

9 of

1932.

6 of

2009.

¦ÉÉMÉ {ÉÉSÉ-+-15-2

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

CHAPTER III

AMENDMENTS TO THE MAHARASHTRA VALUE ADDED TAX ACT, 2002.

In section 11 of the Maharashtra Value Added Tax Act, 2002

(hereinafter, in this Chapter, referred to as “the Value Added Tax Act”), for

sub-section (3), the following sub-sections shall be substituted and shall be

deemed to have been substituted with effect from the 1st April 2017,

namely :—

“(3) Every member of the Tribunal shall be a person, who,—

(i) is or has been, a Judge of the High Court, or

(ii) is or has been, a District Judge, or

(iii) is qualified for appointment as a District Judge, and has

held Judicial Office for not less than ten years, or

(iv) (a) has, for a continuous period of not less than two years

held office, not below the rank of Joint Commissioner of Sales Tax

or, as the case may be, Joint Commissioner of State Tax and has

dealt with quasi-judicial proceedings, or

(b) is retired and has before his retirement held office not below

the rank of Joint Commissioner of Sales Tax or, as the case may be,

Joint Commissioner of State Tax and had before his retirement dealt

with quasi-judicial proceedings, or

member of the Tribunal.

Explanation.—For the purposes of this sub-section, “quasi-judicial

proceedings” shall include assessment, audit or appeal proceedings.

(3A) (a) The members, specified in clause (i), (ii) or (iii) shall

be appointed or re-appointed by the State Government after

consultation with the High Court of Judicature at Bombay.

(b) The member, specified in clause (iv), shall be appointed or

re-appointed by the State Government on the recommendations of a

Selection Committee, constituted in the prescribed manner.

(3B) The terms of office of the member of the Tribunal shall be such

as may be prescribed. The member shall hold office for such period, as

may be prescribed or as the State Government may, by special order in

his case, specify.”.

10.

In section 31 of the Value Added Tax Act,—

(1) in sub-section (1), in clause (b), in sub-clause (i), after the words

“amount payable” the words, figures and letters “upto the 31st December

2018” shall be inserted;

(2) in sub-section (4), the following proviso shall be added and shall

be deemed to have been added with effect from the 1st July 2017,

namely :—

“Provided that, any amount paid by an employer, in accordance

with the provisions of this section to the credit of the State

Government during the period starting on or after the 1st July 2017

and ending on the 31st December 2018, may be claimed as credit in

the prescribed manner and subject to the prescribed conditions, by

the person making the supply to the employer or the concerned

sub-contractor (if any).”.

Amendment

of section 11

of Mah. IX of

2005.

Mah. IX

of 2005.

Amendment

of section 31

of Mah. IX of

2005.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

11.

In section 32A of the Value Added Tax Act, in sub-section (2), in

the Explanation, for the words “dues which are rupees one hundred or less”

the words “tax, which is rupees five hundred or less, per order or, as the case

may be, per period and the interest payable thereon” shall be substituted.

12.

In section 59 of the Value Added Tax Act, in sub-section (1), in the

proviso, for the words “Thane and Raigad District” the words “Thane, Palghar

and Raigad Districts” shall be substituted.

13.

In section 61 of the Value Added Tax Act, after sub-section (1),

before Explanation-I, the following proviso shall be inserted, namely :—

“Provided that, for the year 2017-18, the provisions of this sub-

section shall be applicable to a dealer, whose registration is deemed to

have been cancelled under sub-section (6A) of section 16, if the,—

(a) aggregate of his turnover of sales and the value of goods

transferred to any other place of his business or of his agent or

principal, situated outside the State, not by reason of sale, or

(b) turnover of purchases,

exceeds rupees twenty five lakh.”.

14.

In section 85 of the Value Added Tax Act, in sub-section (2),—

(1) in clause (i), for the word and figures “section 26.” the words

and figures “ section 26, or” shall be substituted;

(2) after clause (i), the following clause shall be added, namely :—

“(j) any order, published by the Commissioner, by virtue of the

powers conferred on him by notification issued under section 26B.”.

CHAPTER IV

AMENDMENT TO THE MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017.

15.

In section 3 of the Maharashtra Goods and Services Tax Act, 2017,

for clause (f), the following clauses shall be substituted, namely :—

“(f) Assistant Commissioners of State Tax,

(f-1) State Tax Officers, and”.

Amendment

of section 32A

of Mah. IX of

2005.

Amendment

of section 59

of Mah. IX of

2005.

Amendment

of section 61

of Mah. IX of

2005.

Amendment

of section 85

of Mah. IX of

2005.

Amendment

of section 3 of

Mah. XLIII of

2017.

Mah.

XLIII of

2017.

¦ÉÉMÉ {ÉÉSÉ-+-15-2+

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

STATEMENT OF OBJECTS AND REASONS.

With a view to give effect to the proposals obtaining in the Budget Speech

for the year 2018-19 and to make certain amendments, in view of the

situations arising due to the introduction of the Goods and Services Tax Law

and due to certain other reasons as explained below, the State Government

considers it expedient to amend the Maharashtra State Tax on Professions,

Trades, Callings and Employments Act, 1975 (Mah. XVI of 1975), the

Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005) and the

Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017).

Some of the important amendments proposed to be made are

explained broadly as follows :—

(1) The Maharashtra State Tax on Professions, Trades, Callings and

Employments Act, 1975 is being amended,—

(a) to provide that the limited liability partnerships and its’

partners shall also be liable to pay profession tax ;

(b) to empower the State Government to notify class of persons,

who shall collect an amount towards profession tax from certain

notified persons, who are liable to pay an amount towards any

supply of goods, services, etc. ;

one time payment of profession tax in advance at a lower rate ;

(d) to provide that the provisions of recovery under the

Maharashtra Goods and Services Tax Act, 2017 shall be applicable

for the recovery under the said Act ;

(e) to cover “other officers” also in the class of authorities under

the Act ;

(f) to empower the Commissioner or an officer, authorized by

the Commissioner, to issue notification and collect information about

the potential tax payers and to impose penalty for failure to furnish

the same.

(2) The Maharashtra Value Added Tax Act, 2002 is being amended,—

(a) to provide for qualifications for appointment and

re-appointment and terms of office of the members of the Tribunal ;

(b) to provide that the tax deducted at source under section

31 and paid into the treasury between 1st July 2017 to 31st December

2018 by an employer may also be claimed as credit by the contractor ;

per order or per period and the interest payable thereon shall not

be recovered ;

(d) to provide that the turnover limit for filing an audit report

under section 61, in respect of dealers, whose registration is deemed

to be cancelled under section 16(6A), shall be rupees twenty five

lakh ;

(e) to provide that an order, published by the Commissioner,

by virtue of the powers conferred on him by the notification issued

under section 26B shall be non-appealable.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

MEMORANDUM REGARDING DELEGATED LEGISLATION

The Bill involves the following proposals for delegation of legislative

power, namely :—

Clause 3.—Under this clause, which seeks to insert new section 4C

in the Maharashtra State Tax on Professions, Trades, Callings and

Employments Act, 1975, the power is taken to the State Government to

notify, subject to such conditions and restrictions specified therein, that

the notified persons shall collect an amount by way of tax from persons

who are liable to pay any amount towards any supply and pay such

amount into the treasury.

Clause 4.—Under this clause, which seeks to substitute sub-section

(3) of section 8 of the Maharashtra State Tax on Professions, Trades,

Callings and Employments Act, 1975, the power is taken to the State

Government to notify a scheme, subject to such conditions and restrictions

specified therein, for payment of tax, in advance, at a rate lower than

the rate, applicable in Schedule I, to an enrolled person.

Clause 7.—Under this clause, which seeks to insert new section

26A in the Maharashtra State Tax on Professions, Trades, Callings and

Employments Act, 1975,—

(a) in sub-section (1), power is taken to the Commissioner, by

notification in the Official Gazette, to direct that the statistics be

collected relating to any matter dealt with, by or in connection with

the Act ;

(b) in sub-section (2), power is taken to the Commissioner or

any officer authorized by the Commissioner, by notification in the

Official Gazette, to specify,—

(i) the form of information or return;

(ii) the officers to whom, such form of information or

return should be furnished ; and

(iii) the period within which such information or returns

should be furnished.

Clause 9.—Under this clause, which seeks to substitute sub-section

(3) and insert new sub-sections (3A) and (3B) in section 11 of the

Maharashtra Value Added Tax Act, 2002 ,—

(a) in sub-section (3A), power is taken to the State Government,

to prescribe the manner in which Selection Committee for the

appointment or re-appointment of member of the Tribunal shall be

constituted;

(b) in sub-section (3B), power is taken to the State Government,

to prescribe the terms and period of the office of the member of the

Tribunal.

Clause 10.—Under this clause, which seeks to add the proviso in sub-

section (4) of section 31 of the Maharashtra Value Added Tax Act, 2002, power

is taken to the State Government, to prescribe the manner and the conditions

in which credit of the amount paid during the period mentioned in the said

sub-section, may be claimed.

2. The above-mentioned proposals for delegation of legislative power

are of normal character.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ {ÉÉSÉ-+, ¨ÉÉSÉÇ 22, 2018/SÉèjÉ 1, ¶ÉEäò 1940

GOVERNOR’S RECOMMENDATION UNDER ARTICLE 207

OF THE CONSTITUTION OF INDIA

(Copy of Government of Maharashtra Order, Law

and Judiciary Department)

In exercise of the power conferred upon him by clause (1) of Article 207

of the Constitution of India, the Governor of Maharashtra is pleased to

recommend to the Maharashtra Legislative Assembly, the Introduction of

the Maharashtra Tax Laws (Levy and Amendment) Bill, 2018.

Vidhan Bhavan :

DR. ANANT KALSE,

Mumbai,

Principal Secretary,

Dated the 22nd March 2018

Maharashtra Legislative Assembly.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY SHRI PARSHURAM JAGANNATH GOSAVI, PRINTED

AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING,

STATIONERY AND PUBLICATION, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004, EDITOR : SHRI PARSHURAM JAGANNATH GOSAVI.