VAT NOTIFICATION - DELHI

-COPY OF

VAT NOTIFICATION

Dated 12^th November, 2015

In partial modification of Notification No. F.3(515)/  Policy/VAT/ 2015/  870-81 dated 12/10/2015, I, S. S. Yadav, Commissioner, Value Added Tax in exercise of the powers conferred under section 27 of the Delhi Value Added Tax Act,2004, do hereby extend the last date for filing of online returns for the 1^st and 2^nd quarters of the year 2015-16, in Forms EC-II and EC-III to 30/11/2015.

No.F3 (515)/Policy/VAT/2015/1003-1014

Sd/-

(S. S YADAV)

Commissioner VAT

ISSUED BY:

GOVERNMENT OF

NATIONAL CAPITAL TERRITORY OF DELHI

DEPARTMENT OF TRADE & TAXES

VYAPAR BHAWAN: I.P.ESTATE

NEW DELHI

             VAT NOTIFICATION - KERALA

-COPY OF-

CIRCULAR No.  25/2015

Dated 11^th November, 2015

Commercial Taxes Department –

Price fixation of Imported

Timber - instructions issued .

Ref: -    1) Circular No. 17/2012 dated 18.06.2012

2)   Circular No. 22/2012 dated 01/08/2012

3)   Order no. C2/22421/08/CT dated 28.03.2011 of the CCT

4)   Report No. DC (I) K4 1268/15 dated 18.09.2015 of DC (Int.).,Kozhikode.

As per the Circulars read above, floor rates were fixed for imported timber varieties for the purpose of collection of Advance tax /Security Deposit. It has been brought to the notice of the Department that the prices of these varieties have increased significantly since then. Hence, vide reference 2^nd cited above, an expert committee was constituted consisting of the three Zonal Deputy Commissioners (Intelligence) and Deputy Commissioners of Thiruvananthapuram, Kollam, Palakkad and Kozhikode, to study the issue and to suggest whether any revision of floor price is necessary.

The committee analyzed the market intelligence, data relating to wholesale prices and other trade practices prevailing throughout the state. The actual profit margin at various levels of business, incidental expenses like freight, insurance, loading and unloading charges etc. were also considered. The committee also heard representatives of the trade on 18.08.2015 and submitted their report with recommendations vide reference 4^th cited above. A committee of three Joint Commissioners had further examined the report.

From the facts evolved from the deliberations, it is seen than the revision in the fioor rates fixed is imminent. So, considering the recommendations of the Committee and in the interest of revenue, the floor rates of imported timber fixed as per circular referred 1^st and 2^nd above are revised as under for the purpose of collection of Advance Tax as per section 47(16A) of the Kerala Value Added Tax Act, 2003.

Type	Floor rate per cubic feet (in Rs.)
Pincoda	1145
Purple Heart(violet)	1075
Green Heart	1075
Mora/Cibida/Kabukali	570
Padak	1290
Kussia	1075
Sal	1075
Beachwood/ Ashwood	1145
Sudan Teak logs (having maximum length of 270cm and maximum girth of 125 cm)	1000
Other Teak	2575

This order will take effect from    11/11/2015

Sd/-

COMMISSIONER

Issued by:

Government of Kerala

Commercial Taxes

Tax Towers, 8^th Floor Killipalam, Karamana –

PO Thiruvananthapuram

KERALA

-COPY OF-

CIRCULAR No.  26/2015

Dated 11^th November, 2015

KVAT Act, 2003 - Multi-level Marketing Entities - Registration, payment of tax at Compounded rates - Operational guidelines issued.

Read    : 1. Circular No. 5/2011 dated 31/3/2011.

2. Kerala Finance Act - 2015.

3. Circular No. 1871/C2/2014/TD dated 14/9/2015 issued by the Principal Secretary,

    Taxes (C) Department, Government of Kerala.

In order to streamline the functioning of the Multi-level Marketing sector in the State of Kerala and also to ensure that the revenue due to the State ex-chequer is duly received, it was announced in the Kerala Budget - 2015 that all multi-level marketing companies, their distributors and agents would be made liable to take out registration under the Kerala Value Added Tax Act, 2003. As per Para 322 of the Budget Speech - 2015, it was announced that:

322. All Multilevel Marketing Companies, their distributors and agents would be made liable to take registration and pay tax under the Kerala Value Added Tax irrespective of their turnover.

Accordingly certain amendments were made in the relevant Sections of the Kerala Value Added Tax Act, 2003 by the Kerala Finance Act - 2015, which, as relevant to the context, is extracted hereunder:

(a) In Section 2, the following clauses were inserted:

"(xxviiA) "multi-level marketing" means marketing and sale of goods of a multi-level marketing entity through direct sellers or through direct sellers and distributors, otherwise than through shops, to the customers or consumers, generally in their houses or at their workplace or through demonstration of such goods at a particular place or by mail order sale;

(xxviiB) "multi-level marketing entity" means a company registered under the Companies Act, 2013 (Central Act 18 of 2013) or any partnership firm registered under the Partnership Act, 1932 (Central Act IX of 1932) or under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) engaged in multi-level marketing;"

(b) In sub-section (1) of Section 6, the following words were inserted:

"or any multi-level marketing entity, their distributor and/or agent engaged in

multi-level marketing"

(c) In Section 8, the following clause was inserted:

"(i) Any dealer who is a multi-level marketing entity may, at his option, pay, in such manner and subject to such conditions and restrictions as may be prescribed, in lieu of the tax payable by him on such goods under sub-section (1) of section 6, tax at the schedule rate applicable to goods, of the maximum retail price of such goods.

Provided that the provision of this clause shall not apply to such goods sold by multi-level marketing entities otherwise than by way of multi-level marketing:

Provided further that notwithstanding anything contained in section 6 and section 15, if multi-level marketing entities pay tax on maximum retail price under this provision, subsequent dealers in the chain shall not be liable to take out registration and shall be exempted from payment of tax on such goods."

(d) In sub-section (2) of Section 15, the following clause was inserted:

"(xii) any multi-level marketing entity, their distributor and/or agent engaged in multi-level marketing;"

Now the trade has brought to the notice of the Department certain practical difficulties being faced by them on account of the above said amendments with particular reference to their online Registration and payment of tax under Compounding Scheme.

At present, the KVATIS does not have any specific provision for the Registration of Multi­level Marketing entities and for opting payment of tax under Compounding scheme for such entities.

As such, the following amendments are hereby made in the Forms concerned namely:

1. in Form No. 1 - Application Form for On-line Registration:

in Serial No. '11. Nature of Business' after sub-item 'k. Others (specify)', the sub-item 'l. Multi-level Marketing Entity / Distributor / Agent' shall be inserted;

2. in Form No. 1B - On-line Application for Salesman Permit / Exhibition or Exchange Mela /Compounding / Liability Certificate / Registration Renewal:

(i)        in the item 'Category of Dealer' under the heading 'Compounding under Section 8' after
the word and symbol 'Medicine /', the words 'Multi-level Marketing Entity' shall be inserted;

(ii)       after the item '9. Medicine Dealers' and the sub-items under it, a new item namely:
' 10. Multi-level Marketing Entity

a. I opt for compounding for the financial year :

i. Whether compounding on MRP opted for the preceding year : Yes/No' shall be inserted;

3. in Form No. 1E - Permission to pay tax under Compounding Scheme;

(i) in the item 'Category' after the word and symbol 'Medicine /', the word 'Multi-level Marketing Entity' shall be inserted;

(ii) after the item 'Medicine Dealers' and the sub-items under it, a new item namely;

Multi-level Marketing Entity

Permitted to compound Turnover of goods sold at the schedule rate applicable to the goods, of the maximum retail price of such goods' shall be inserted;

Guidelines for the functioning of Multi-level Marketing Entities.

The Government of Kerala vide Circular read as paper 3^rd above has formulated certain guidelines for the functioning of Multi-level Marketing Entities/Direct Sellers. The gist of the Government Circular is as follows:

I.  Conditions for Multi-level Marketing/ Permissible Direct Selling: For making the Multi-level  Marketing/ Direct Selling activities permissible within the State of Kerala, the following conditions are to be satisfied:

(i).   Every Multi-level Marketing/ Direct Selling Entity operating within the State should:

a)    take out Registration under the Kerala General Sales Tax Act, 1963 / Kerala Value Added Tax Act, 2003 and the Income Tax Act.

b)    take out Licenses as may be required as per the Laws of the State/Centre.

c)     clearly state the nature of their business in the Partnership Deed or Memorandum of Association, as the case may be.

(ii). The Multi-level Marketing/Direct Selling Entity should pay sales incentive to Direct Sellers at the agreed rate within the agreed period.

(iii). The Multi-level Marketing/Direct Selling Entity should have an Official Website wherein the relevant details viz. Names and Identification numbers of their authorized Direct Sellers and provisions for registering complaints by the consumers shall clearly be stated.

(iv). The Multi-level Marketing/Direct Selling Entity should have a Consumer Grievance Cell that should ensure redressal of consumer grievances within seven days from the date of making such complaints.

II. Appointment/Authorisation of Direct Sellers: While appointing or authorising the Direct Sellers, the Multi-level Marketing/ Direct Selling Entity should conform to the following procedure:

i). Appointment/authorisation of Direct Seller should be upon receipt of application form in prescribed format. The application form should contain the details of the person applying to become a Direct Seller and an undertaking to the effect that he has understood the nature of business and the terms and conditions of the direct selling. Only after satisfying the correctness and genuineness of the details given in the application form with supporting evidences, he/ she should be appointed as a Direct Seller. 

ii). No application should be considered unless such applicant is eligible to enter into a contract under the Indian Contract Act, 1872.

iii). An agreement recording terms of the appointment as Direct Seller should be executed between the Multi-level Marketing/Direct Selling Entity and the Direct Seller.

iv). Each Direct Seller should be allotted a Unique Identification Number before granting license/permission to start Direct Selling and be given with an Identity Card.

v). No incentive should be paid to any person either for canvassing any person for becoming a Direct Seller or for joining as a Direct Seller.

vi). The Multi-level Marketing/Direct sellers should undergo training on the do's and don'ts of direct marketing in an approved institution by the Government such as Gulati Institute of Finance and Taxation (GIFT), Sreekaryam, Thiruvananthapuram.

vii). Each Direct seller should take out registration under the Kerala Value Added Tax Act, 2003, if the Multi-level Marketing Entity is not opting for payment of tax under compounded system envisaged in the Act. If the Multi-level Marketing Entity has opted for paying the tax at the first point of sale on Maximum Retail Price, the subsequent dealers including direct sellers need not take out registration nor pay any Value Added Tax.

III.   Activities Prohibited:

i).  No Multi-level Marketing/Direct Selling Entity or Direct Seller should indulge in any Money Circulation Scheme or do any activity barred by the Prize Chits and Money Circulation

Schemes (Banning) Act, 1978 (Money Circulation means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions).

(ii). No Multi-level Marketing/Direct Selling Entity should pay any incentive, by whatever name called, to any person or Direct Seller except the incentive related to the volume of sales of goods or services effected by them.

(iii). Neither the Multi-level Marketing/Direct Selling Entity nor the Direct Sellers should supply or sell goods which are of inferior quality or have exceeded its validity/usage period.

(iv). No Multi-level Marketing/Direct Selling Entity or Direct Seller should carry out any money circulation business or Pyramid Scheme for making fast money.

(v). No Multi-level Marketing/Direct Selling Entity should create chain of customers as the long and unbroken chain would amount to Pyramid Scheme and should be construed to be attempting for making quick or easy money.

(vi). No Multi-level Marketing/Direct Selling Entity or Direct Seller should be selling goods that does not give value for the money the buyer pays.

(vii). No Multi-level Marketing/Direct Selling Entity or Direct Seller should collect any Service Charge, while selling goods.

(viii). Should not commit any act or acts that are punishable under Indian Penal Code.

(ix).   Should not commit any act or acts in violation of the provisions of Indian Contract Act, 1872.

(x).    Should not do any act or acts in violation of the provisions of the Consumer Protection Act, 1986.

IV.  General Conditions:

(i). The Maximum Retail Price of all goods sold by the Multi-level Marketing/Direct Selling Entity or Direct Seller should be visibly displayed on the package/carton/cover of the goods.

(ii). Goods sold by the Multi-level Marketing/Direct Selling Entity or Direct Seller should carry Guarantee/Warranty of the manufacturer.

(iii). Multi-level Marketing/Direct Selling Entity should give the consumer the opportunity to exchange/return the goods sold to him if he finds any manufacturing defect or the product purchased is not useful for the purpose it was meant, within thirty days from the date of purchase, provided any seal/protection on the product is kept unbroken.

(iv). Accounts of individual Direct Sellers shall be maintained properly and should be made available through Web.

V. Maintenance of Records:

Direct Selling Entity/ Company should maintain the following records:

I.         Memorandum of Association, Articles of Association and Certificate of Registration issued by the Registrar of Companies.

II.        Copies of TIN, DIN of Directors, TAN and PAN; In the case of a Partnership - Partnership Deed duly registered.

III.         Registration Certificates taken out under the Kerala General Sales Tax Act, 1963/ Kerala Value Added Tax Act, 2003, Chapter V of the Finance Act - 1994, and Central Sales Tax Act, 1956.

IV.         Copies of Sales Tax / Value Added Tax Returns, Service Tax Returns, Income Tax Returns filed before the authorities concerned during the previous three financial years.

V.           Copies of the Statements of Income Tax Deducted at Source. 

VI.         Register containing the details of all Direct Sellers within the State.

VII.        KYC/KBDS (Know Your Customer/Know Your Direct Sellers) as a mandatory process.

VI. Grievance Redressal Mechanism: Every Multi-level Marketing/Direct Selling Entity must have a Complaint Redressal Forum to address the problems of their customers/Direct Sellers effectively. Details of such Forum should be made readily available on the website of the Multi-level Marketing/Direct Selling Entity.

VII. Breach of Guidelines: The Multi-level Marketing/Direct Selling Entities and the Direct Sellers have to follow the above guidelines meticulously. Multi-level Marketing/Direct Selling activity in violation of the guidelines shall be dealt appropriately by the Law Enforcement agencies under the provisions of the appropriate Act such as Prize Chits and Money Circulation Schemes (Banning) Act, 1978, Indian Penal Code, Consumer Protection Act etc.

All assessing authorities are hereby directed to verify and satisfy themselves that the Multi­level Marketing / Direct Selling entity has complied with the above said Guidelines before granting Registration to such entities. Also an affidavit has to be obtained stating that they are complying with the guidelines.

The Circular No. 5/2011 read as 1^st paper above stands modified to the above extent.

Sd/-

COMMISSIONER

Issued by:

Government of Kerala

Commercial Taxes

Tax Towers, 8^th Floor Killipalam, Karamana –

PO Thiruvananthapuram

KERALA

VAT NOTIFICATION - MAHARASTRA

 -COPY OF-

VAT NOTIFICATION

Dated  5th November, 2015.

Maharashtra Value Added Tax Act, 2002.

No. VAT. 1515/CR-81/Taxation-l.—Whereas the Government of Maharashtra is satisfied that circumstances exist which render it necessary to take immediate action further to amend the Maharashtra Value Added Tax Rules, 2005 and to dispense with the condition of previous publication thereof under the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 (Mah. LX of 2005);

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (2) read with the proviso to sub-section (4) of section 83 of the said Act, and of all other powers enabling it in this behalf, the Government of Maharashtra, hereby, makes the following rules further to amend the Maharashtra Value Added Tax Rules, 2005, namely :—

1.      (1)  These rules may be called the Maharashtra Value Added Tax (Second Amendment) Rules,

               2005.

         (2)  These shall come into force with effect from the 1st December, 2015.

2.      In rule 88 of the Maharashtra Value Added Tax Rules, 2005, for the sub-rule (1) the following sub-rule shall be substituted, namely:—

"(1) The rates of interest for the purposes of sub-sections (1), (2) and (3) of section 30 shall be as specified in the table below :—

TABLE

Sr. No.	Period, liable for interest	Rate of interest
(1)	(2)	(3)
1	Upto one month	One and a quarter per cent of the amount of such tax, for the month or for part thereof.
2	Upto three months	One and a quarter per cent of the amount of such tax, for the month or for part thereof for the first month of delay and one and a half percent of the amount of such tax, for each month or for part thereof for delay beyond one month up to three months.
3	More than three months	One and a quarter per cent of the amount of such tax, for each month or for part thereof for the first month of delay, one and a half per cent of the amount of such tax, for each month or for part thereof for delay beyond one month upto three months and two per cent of the amount of such tax, for each month or for part thereof for the period delay beyond three months."

By order and in the name of the Governor of Maharashtra,

Sd/-

R. D. BHAGAT,

Deputy Secretary to Government.

Issued by:

FINANCE DEPARTMENT

Government of Maharashtra

Mumbai

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