Maharashtra Tax Laws (Second Amendment and Validation) Act, 2019

Jul 03, 2019 | by Avantis RegTech Legal Research Team


The State Government of Maharashtra on June 26, 2019, has issued a Bill on the Maharashtra Tax Laws (Second Amendment and Validation) Act, 2019, to further amend the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 and the Maharashtra Value Added Tax Act, 2002 and to give effect to “Ease of Doing Business” policy.

The amendments proposed to be made are explained broadly as follows:

Ø  The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 is being amended:

(a)    To provide that the enrolled persons can pay profession tax upto March 31 of the respective year (Section 8(2) has been substituted);

(b)   To provide that the persons, who obtains enrolment late, will be liable to pay simple interest at the rate of 1.25 per cent. per month from July 01 of the year in which he was liable to obtain enrollment certificate, till the date of payment of tax for such period (Section 9(3A) has been inserted);

(c)    To delete the provision regarding imposition of penalty for failure to obtain enrolment certificate within the period specified in the Act.   

Ø  The Maharashtra Value Added Tax Act, 2002 is being amended:

(a)    To enable grant of refunds or determination of net tax payable, in respect of those dealers, who are being assessed under section 23(5) of Maharashtra Value Added Tax Act, 2002, after adjusting amount of refund claimed in the returns or mentioned in the audit report [Proviso has been inserted in Section 23(5)(a)].

(b)   To provide that the dealers, whose tax liability in a financial year commencing on or after April 01, 2019 does not exceed rupees twenty five thousand, will not be liable to file audit report [Proviso has been inserted in Section 61(1)].

Save as otherwise provided in this Act, it will come into force on the date of publication of this Act in the Official Gazette.

[L. A. BILL No. XXXVII OF 2019]


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