Government of Maharashtra amends the Maharashtra Value Added Tax Act, 2002

Aug 07, 2019 | by Avantis RegTech Legal Research Team


The State Government of Maharashtra on August 01, 2019, has made amendments in the Maharashtra Value Added Tax Act, 2002.

Assessing Authority can consider the refund claim, during transaction-wise assessment proceedings (Amendment to section.23):

However, there are some registered dealers, who may not have filed application in e-501 by the stipulated date, even though there was refund in:

a)      Last return of the year, or

b)      Revised return, containing last day of the year, or

c)       Audit report in e-704, as mentioned by the auditor.

If these dealers are selected for transaction-wise assessment u/s 23(5), then such dealers are not able to adjust such refund amount against the dues, which arise in such assessment proceedings.

Therefore, a proviso has been inserted to sub-section (5) of section 23 with effect from April 01, 2005, where an assessing authority, while carrying out assessment u/s. 23(5) of a registered dealer, may adjust the dues, arrived at, against the amount of refund claimed in last return of the year or in revised return containing last day of the year or against the amount of refund mentioned by an auditor in audit report in Form e-704.

Salient features of this amendment are explained as follows:

1.       Assessing authority, can apply provisions of the amended sec. 23(5) to all the live assessment proceedings before him, in respect of registered dealers.

2.       Assessing authority shall adjust the tax liability arising out of assessment proceedings u/s. 23(5) and the consequential interest and penalty, if any, against the amount of refund claimed in such last return, revised return or e-704.

3.       In case, amounts of refund claimed in such return, revised return or e-704 are different, then the amount of refund, in any of these three filings, whichever is filed later, shall only be considered. It also be noted that such return, last return or e-704 should have been filed upto filed after March 31, 2019.   

4.       An appellate authority can apply provisions of amended section 23(5) for any of the pending appeals also, which are filed against assessment orders u/s. 23(5), irrespective of the assessment period.

Relief from filing audit report in Form e-704 u/s. 61, if tax liability does not exceed Rs. 25,000/- (Amendment to section.61):

However, dealers whose tax liability in the year does not exceed Rs. 25,000 need not file audit report in form e-704 even if the turnover of such dealer exceeds Rs. 1 crore in the said year. Further dealer, who holds an Entitlement Certificate in respect of any Package Scheme of Incentives, shall not be liable to file audit report in form e-704 if his tax liability in the year does not exceed Rs. 25,000. This provision will be applicable for the audit reports to be filed for any year, from 2019-20 onwards.

[Trade Circular No. 41T of 2019]


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