SALES TAX FUNCTIONS
Maharashtra State
is one of the leading state in India. Mumbai the capital city of state is internationally
recognised as financial capital of India. State is rich with a long stretch of coastline,
mountains, plains and full of natural resources. States progressive attitude has attracted
national as well as international investors in a big way specially because of atmosphere
conducive to the trade and commerce.
Sales Tax Department
is a major revenue earning body for the state Government. Department's share to the state
exchequer is whopping 58%. Government has adopted a single point tax structure. Tax
range is fixed between 1% to 20% depending on the commodity. Apart from Bombay Sales Tax
Act 1959, Sales Tax Department is entrusted to implement some other Acts of Tax recovery.
Maharashtra
State stands at the forefront in collection of Sales tax and various other taxes. The
total tax collection, which was only Rs. 781 Crores in 1980 -81 is expected to reach Rs.
10608 cr. in 1999-2000. The yearwise
collection is are indicated below:
Sales Tax is the
single largest contributor of revenue to the State Government. Monitoring the collection
of taxes as per law is the main function of the department. Registration, Assessment,
Appeals and Enforcement are some of the major activities including Establishment,
Administration, Audit, Legal etc.
HISTORICAL
BACKGROUND AND BASIS OF COLLECTION IN MAHARASHTRA STATE
Sales Tax in
Maharashtra was introduced way back in 1946. Bombay
Sales Tax Act, which is, present enactment, came into existence w.e.f. 1-1-1960 as a first
stage single point levy. This Act has under
gone major changes in 1981 and 1995 when VAT (Value Added Tax) was made applicable on
resellers of all taxable commodities except declared goods on the basis of Annual Turnover
of Sales. As per recent amendment Turnover
Tax Surcharge is levied i.e. while VAT is discontinued.
ACTS ADMINISTERED BY THE SALES TAX DEPARTMENT
| Sr. No. | Acts Administered | Receipts (1998-99) Fig's in Rs. Cr. |
| 1 | Bombay
Sales Tax Act 1959 (B.S.T. Act) |
5222.73 |
| 2 |
Central
Sales Tax Act 1956 (C.S.T. Act) |
1339.89 |
| 3 |
Bombay
Motor Spirit Taxation Act 1958 (M.S.T. Act) |
1621.62 |
| 4 | Maharashtra
Sales Tax on Transfer of Rights to use Any Goods for any purpose Act 1985 ( Lease Tax Act ) |
** |
| 5 | The
Maharashtra Sales Tax on transfer of property in Goods involved in the execution of
Works Contract Act 1989 ( Works Contract Tax Act ) |
** |
| 6 |
Maharashtra
Purchase on Sugarcane Act 1962 (S.C.PT. Act) |
86.49 |
| 7 | Maharashtra
State Tax on Profession Trade Callings and Employment
Act 1975 (P.T. Act) |
541.56 |
| 8 | Luxury
Tax Act 1987 (L.T. Act) |
134.52 |
| 9 |
Motor
Vehicle Entry Tax Act 1988 (E.T. Act) |
6.64 |
| 10 |
Maharashtra Chit Fund Act 1975 |
** Receipts included in BST receipts.
1960-61 |
1998-99* |
1999-00*
Estimated |
|||
| MUMBAI | STATE |
MUMBAI | STATE |
STATE |
|
| BOMBAY
SALES TAX |
18.07 |
22.95 |
3270.25 |
5222.73 |
6178.00 |
| CENTRAL
SALES TAX |
4.13 |
4.69 |
796.01 | 1339.89 |
1535.00 |
| MOTOR
SPIRIT TAX |
2.49 | 2.49 |
1621.62 |
1621.62 |
2040.00 |
| SUGARCANE PURCHASE TAX | 0.00 |
0.00 |
0.00 |
86.49 |
90.00 |
| TOTAL
SALES TAX |
24.69 |
30.13 |
5687.88 |
8270.73 |
9843.00 |
| PROFESSION
TAX |
0.00 |
0.00 |
235.32 |
541.56 |
620.00 |
| LUXURY
TAX |
0.00 |
0.00 |
121.31 |
134.52 |
114.99 |
| ENTRY
TAX |
0.00 |
0.00 |
0.98 | 6.64 |
30.00 |
| GRAND
TOTAL |
24.69 |
30.13 |
6045.49 |
8953.45* |
10607.99 |
*Departmental Gross (Amount in Rs. Cr.)
STATEMENT OF SALES TAX ARREARS
| As on... |
BST |
CST | Works Contract | S.G.PT. | Other Acts (Lease, Luxury, MST,
AIT & Entry Tax |
PT |
Total Arrears |
| 01-04-1994 | 1142 |
375 |
36 |
123 |
18 |
168 |
1862 |
| 01-04-1995 |
1541 |
405 | 42 |
153 |
18 |
170 |
2329 |
| 01-04-1996 |
1754 | 514 |
50 |
149 |
19 |
320 |
2806 |
| 01-04-1997 |
2097 | 634 |
68 |
188 |
52 |
234 |
3273 |
| 01-04-1998 |
2577 |
748 |
92 |
201 | 58 |
274 |
3950 |
| 01-04-1999 |
3274 |
976 |
127 |
191 |
278 |
276 |
5122 |
(Amount in Rs. Cr.)
CATEGORIWISE
DEALRES
| Sr. No. | Tax Liability (Annual) | Category | % To Total Dealer | Revenue Yield | Accessing Authority |
| 1 |
Above Rs. 1
Crore |
A |
0.17% |
48.24% | Sr. Asstt. Commissioner |
| 2 | Above Rs.4 lakhs |
B |
2.78
% |
33.29% | Asstt. commissioner |
| 3 |
Above Rs. |
C |
22.49
% |
13.53
% |
Sales Tax Officer (1) |
| 4 |
Below Rs. |
D |
74.56
% |
4.94% |
Sales Tax Officer (2) |
Above
dealers are classified with turnover slabs as under:
Number Of Dealers |
Percentage |
|
| Above Rs. 1
Crore |
18012 | 3.81% |
Above Rs.4 lakhs |
33236 | 7.03% |
Above Rs. |
204617 | 43.28% |
Below Rs. |
216911 | 45.88% |
| Total | 472776 | 100 % |
CLASSIFICATION OF DEALERS
| NO
OF DEALERS |
PERCENTAGE
|
|
| RESELLERS |
308155 |
65.18 |
| MANUFACTURERS |
133040 |
28.14 |
| IMPORTERS |
22078 |
4.67 |
| EXPORTERS |
4491 |
0.95 |
| COMMISSION
AGENTS |
5012 |
1.06 |
| TOTAL |
472776 |
100 |
