8th floor, Vikrikar Bhavan, Mazgaon, Mumbai-400010.

TRADE CIRCULAR To No.VAT/WCT-1007/111/Adm/3 Trade Cir. No. 48 T of 2007 Sub: The effective date for notified Construction Contracts. Gentlemen/Sir/Madam, Section 42 of the Maharashtra Value Added Tax Act, 2002 was amended with effect from 20.06.2006. The amendment provided that the composition rate for Construction Contracts will be @ 5%. The amendment also provided that Construction Contracts will mean such contracts as are notified by the State Government. Mumbai, Dt.25.06.07

2.

The Government Notification listing the Construction Contracts was issued w.e.f. the 30th

November 2006. Meanwhile, the Maharashtra Value Added Tax rules were amended w.e.f. the 8th September, 2006. The amendment to the rules provided that where a dealer undertakes

Construction Contracts then there will be a reduction in the set off available to the dealer. The issue now is whether the 5% rate will apply to the Construction Contracts executed between the 20th June 2006 to 30th November, 2006.

3.

After taking into consideration the above circumstances the Government have taken a

following decision.

If, in the period starting from 20th June 2006 to 30th November 2006 any Works Contract sales have taken place and these contracts are subsequently notified as Construction Contracts w.e.f. 30th November 2006 then in the intervening period from 20th June 2006 to 30th November, 2006 these sales will be taxed @ 5%, subject to reduction in set-off as provided in the rules.

4.

If the dealers concerned have acted differently than above they may file revised return for

the relevant periods. 5. This circular cannot be made use of for legal interpretation of provisions of law as it is

clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification. 6. You are requested to bring the contents of this circular to the notice of the members of your

association. Yours faithfully, (SANJAY BHATIA) Commissioner of Sales Tax, Maharashtra State, Mumbai.

No.VAT/WCT-1007/111/Adm/3 Trade Cir. No. 48 T of 2007 1. Copy forwarded To: a. b. c. All the Addl. Commissioners of Sales Tax in the State.

Mumbai, Dt.25.06.07

All the Joint Commissioners of Sales Tax in the State. All the Sr. Dy. Commissioners of Sales Tax in the State.

d. e. f. 2.

All the Dy. Commissioners of Sales Tax in the State. All the Asstt. Commissioners of Sales Tax in the State. All the Sales Tax Officers in the State. Copy forwarded with compliments for information to:

a. The Officer on Special Duty, Finance Department, Mantralaya, Mumbai. b. The Under Secretary, Finance Department, Mantralaya, Mumbai. c. The Accounts Officer, Sales Tax Revenue Audit, Mumbai and Nagpur. 3. Copy to all the Desks and Desk Officers in the office of the Commissioner of Sales Tax, Maharashtra State, Mumbai. (Dilip Dixit) Joint Commissioner of Sales Tax, (HQ)1, Maharashtra State, Mumbai.