15 July 2009

Terminology of terms used under MVAT Act, 2002

 

Business Defined under MVAT Act, 2002

Sec.2(4) business includes, --

a) any service;

(b) any trade, commerce or manufacture;

(c) any adventure or concern in the nature of service, trade, commerce or manufacture;

whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with a motive to make gain or profit and whether or not any gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern.

Explanation. For the purpose of this clause,�      

(i) the activity of raising of man-made forest or rearing of seedlings or plants shall be deemed to be business;

(ii) any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be a transaction comprised in business;

(iii) sale or purchase of any goods, the price of which would be credited or, as the case may be, debited to the profit and loss account of the business under the double entry system of accounting shall be deemed to be transactions comprised in business;

(iv) any transaction in connection with the commencement or closure  of business shall be deemed to be a transaction comprised in business;

Capital Asset Defined under MVAT Act, 2002

Sec.2(5) capital asset shall have the same meaning as assigned to it, from time to time, in the Income Tax Act, 1961, but the said expression shall not include jewellery held for personal use or property not connected with the business;

Dealer Defined under MVAT Act, 2002

Sec.2(8) dealer means any person who for the purposes of or consequential to his engagement in or, in connection with or incidental to or in the course of, his business buys or sells, goods in the State whether for commission, remuneration or otherwise and includes,-

(a)  a factor, broker, commission agent, del-credere agent or any other mercantile agent, by whatever name called, who for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of the business, buys or sells any goods on behalf of any principal or principals whether disclosed or not;

(b) an auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who organizes the sale of goods or conducts the auction of goods whether or not he has the authority  to sell the goods belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;

(c) a non resident dealer or as the case may be, an agent. residing in the State of a non-resident dealer, who buys or sells goods in the State for the purposes of or consequential to his engagement in or in connection with or incidental to or in the course of, the business.

(d) any society, club or other association of persons which buys goods from, or sells goods to, its members;

Explanation- For the purposes of this clause, each of the following persons, bodies and entities who sell any goods whether by auction or otherwise, directly or through an agent for cash, or for deferred payment, or for any other valuable consideration, shall, notwithstanding anything contained in clause (4) or any other provision of this Act, be deemed to be a dealer, namely:-

(i) Customs Department of the Government of India administering the Customs Act, 1962;

(ii) Departments of Union Government and any Department of any State Government ;

(iii) Incorporated or unincorporated societies, clubs or other associations of persons;    

(iv) Insurance and Financial Corporations, institutions or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934;

(v) Local authorities;  

(vi) Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950;

(vii) Port Trusts;

(viii) Public Charitable Trusts registered under the Bombay Public Trusts Act, 1950;

(ix) Railway Administration as defined under the Indian Railways Act, 1989 and Konkan Railway Corporation Limited;

(x) Shipping and construction companies, air transport companies, airlines and advertising agencies;

(xi) any other corporation, company, body or authority  owned or constituted by, or subject to administrative control, of the Central Government, any State Government  or any local authority:

Exception I. An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally, shall not be deemed to be a dealer within the meaning of this clause.

Exception II. �An educational institution carrying on the activity of manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be deemed to be a dealer within the meaning of this clause.

Exception III. �A transporter holding permit for   transport vehicles (including cranes) granted under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward shall not be deemed to be a dealer within the meaning of this clause in respect of sale or purchase of such transport vehicles or parts. components or accessories thereof.

 

Goods Defined under MVAT Act, 2002

Sec.2(12) goods means every kind of moveable property not being newspapers, actionable claims, money, stocks, shares, securities or lottery tickets and includes live stocks, growing crop, grass and trees and plants including the produce thereof including property in such goods attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

Importer Defined under MVAT Act, 2002

Sec.2(13) importer means a dealer who brings any goods into the State or to whom any goods are dispatched from any place outside the State;

 

Non-resident Dealer Defined under MVAT Act, 2002

Sec.2(16)    non-resident dealer means a dealer who effects purchases or sales of any goods in the State, but who has no fixed or regular place of business in the State;

 

Person Defined under MVAT Act, 2002

Sec.2(17) person includes an individual, any State Government , the Central Government, any company or society or club or association or body of individuals whether incorporated or not, and also a Hindu Undivided Family, a firm and a local authority  and every artificial juridical person not falling within any of the preceding descriptions.

Place of Business Defined under MVAT Act, 2002

Sec.(18) place of business includes a warehouse, godown or other place where a dealer stores his goods and any place where the dealer keeps his books of accounts;

Purchase Price Defined under MVAT Act, 2002

Sec.2(20) purchase price means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged;

Explanation I. The amount of duties levied or leviable on the goods under the Central Excise Act, 1944, or the Customs Act, 1962 or the Bombay Prohibition Act, 1949 shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.

Explanation II. Purchase price shall not include tax paid or payable by a person in respect of such purchase.

Explanation III. Purchase price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods;

Explanation IV.The amount of valuable consideration paid or payable by a dealer for the purchase of drugs specified in entry 29 of Schedule C shall be the maximum retail price printed on the package containing the drugs.

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

Explanation V- Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, purchase price shall be taken to mean, the total consideration for the works contract and for the purpose of levy of tax, purchase price shall be taken to mean, the price as may be determined in accordance with the rules, by making such deduction from the total consideration for the works contract as may be prescribed.

Sec.2(21)    registered dealer means a dealer registered under this Act:

Sec.2(22) resale means a sale of purchased goods

in the same form  in which they were purchased, or

without doing anything to them which amounts to, or results in, a manufacture,

and the word resell shall be construed accordingly;

Sec.2(24) sale means a sale of goods made within the State for cash or deferred payment or other valuable consideration hut does not include a mortgage, hypothecation, charge or pledge; and the words sell, buy and purchase, with all their grammatical variations and cognate expressions, shall be construed accordingly;

Explanation,-For the purposes of this clause,

(a) a sale within the State includes a sale determined to be inside the State in accordance with the principles formulated in section 4 of the Central Sales Tax Act, 1956;

(b) (i) the transfer of property in any goods, otherwise than in pursuance of a contract, for cash, deferred payment or other valuable consideration;

(ii) the transfer of property in goods (whether as goods or in some other form ) involved in the execution of a works contract;

(In the above clause (b) (ii) for the words works contract the following words are inserted by Maharashtra Act No. XXXII of 2006 Dt.05.08.2006)

(ii)  the transfer of property in goods (whether as goods or in some other form ) involved in the execution of a works contract including, an agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.

(In the above clause (b) (ii) for the words works contract namely the words works contract including are inserted by Maharashtra Act No. XXV of 2007 Dt.06.08.2007)

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) the transfer of the right to use any goods or any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(v)the supply of goods by any association or body of persons incorporated or not, to a member thereof or other valuable consideration;

(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service is made or given for cash, deferred payment or other valuable consideration:

Sec.2(25) sale price means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation 1. The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.        

Explanation II.  Sale price shall not include tax paid or payable to a seller in respect of such sale.

Explanation III.  Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;

Explanation IV: The amount of valuable consideration paid or payable  of a dealer for  the  sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drug.  

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

 

Purchase Price Defined under MVAT Act, 2002

(25)    �sale price� means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation 1. �The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.        

Explanation II. � Sale price shall not include tax paid or payable to a seller in respect of such sale.

Explanation III. � Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;

Explanation IV: The amount of valuable consideration paid or payable  of a dealer for  the  sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drug.  

(The above explanation IV is deleted by Maharashtra Ordinance No. V of 2007 Dt.30.06.2007)

Purchase Price Defined under MVAT Act, 2002

Sec.2(26 'Schedule' means the Schedule appended to this Act;

Service Defined under MVAT Act, 2002

SEC. 2(27) 'service' means any service as may be notified  by the State Government , from time to time, in the Official Gazette ;

State Defined under MVAT Act, 2002

sec.2(28)'the State' means the State of Maharashtra;

 

Tax Defined under MVAT Act, 2002

Sec. 2(29) 'tax' means a sales tax, leviable or as the case may be, payable, under this Act and includes any amount payable by way of composition;

Tax-free Goods Defined under MVAT Act, 2002

Sec.2(30) "tax-free goods" means goods against which the rate of sales tax is shown to be NIL in the Schedule and 'taxable goods' means goods other than  tax-free goods

Definition of Turnover of Purchases, Sec. 2(32) of MVAT Act, 2002

Sec. 2(32) 'turnover of purchases' means the aggregate of the amounts of purchase price paid and payable by a dealer in respect of any purchase of goods made by him during a given period, after deducting the amount of,

(a)  purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed  period; and

(b)  deposit, it any, refunded in the prescribed  period to the dealer by the seller, in respect of any goods purchased by the dealer.

Explanation I. In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of purchase price paid or payable during a given period shall mean the amounts paid or, as the case may be, due and payable during the said Period.

Explanation II - �����..

Purchase Price means sale price as defined u/s.2(20)

Goods means goods as defined u/s.2(12) 

Prescribed period for purpose of clause (a) for return of goods is six months form the date of sale. If goods are returned within six months the dealer can take credit of tax paid/collected on return goods [Rule 3]

Turnover of Sales Sec 2(33) of MVAT Act, 2002.

Sec 2(33) turnover of sales means the aggregate of the amounts of sale price received and receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of

(a) 'sale price', if any, refunded by the seller, to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed  period; and

(b) deposit, if any, refunded in the prescribed  period, by the seller to a purchaser in respect of any goods sold by the dealer.

Explanation I. In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of sale price received or receivable during a given period shall mean the amounts received or as the case may be, due and payable during the said period;

Explanation II-����..

Explanation III. Where the registration certificate  is cancelled, the amounts of sale price in respect of sales made before the date of the cancellation order , received or receivable after such date, shall be included in the turnover of sales during a given period;

Sales Price means sale price as defined u/s.2(24)

Goods means goods as defined u/s.2(12) 

Prescribed period for purpose of clause (a) for return of goods is six months form the date of sale. If goods are returned within six months the dealer can take credit of tax paid/collected on return goods [Rule 3]

Year Sec. 2(35) means financial year.

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