Amendment of section 42 of Mah IX of 2005

In section 42 of the Value Added Tax Act,—

1. (a) in sub-section (1),—
   • (i) in clause (b), for the words "this section" the words "this sub-section" shall be substituted;
   • (ii) in clause (c), after the words "Country Liquor" the words, brackets and figure "except as provided in sub-section (2)" shall be inserted;
2. (b) in sub-section (2), after the words "selling motor vehicles", the following shall be added, namely :— " or vendors selling Indian Made Foreign Liquor or Country Liquor at retail and holding licence in Form FL II appended to the Bombay Foreign Liquor Rules, 1953 or in Form CL III or in Form CL/FL/TOD/III appended to the Maharashtra Country Liquor Rules, 1973, framed under the Bombay Prohibition Act, 1949." ;
3. (c) for sub-section (3), the following sub-sections shall be substituted, namely :— "(3) Where a dealer is liable to pay tax on the sales 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, he may subject to such restrictions and conditions as may be prescribed, in lieu of the amount of tax payable by him under this Act, whether in respect of the entire turnover of sales effected by way of works contract or in respect of any portion of the turnover corresponding to individual works contract, pay lump-sum by way of composition,—
4. (a) equal to five per cent. of the total contract value of the works contract in the case of a construction contract, and
5. (b) eight per cent. of the total contract value of the works contract in any other case, after deducting from the total contract value of the works contract, the amount payable towards sub-contract involving goods to a registered sub-contractor. Explanation.—For the purposes of this sub-section,—
   • (i) "construction contract" shall mean construction contract as may be notified by the State Government in the Official Gazette, from time to time, and
   • (ii) "the amount payable towards sub-contract involving goods" means the aggregate value of the goods on which tax is paid and the quantum of said tax paid by the sub-contractor or the sub-contract value on which tax by way of composition is paid by the sub-contractor, as the case may be.

1. (4) Where a dealer is liable to pay tax on sales effected by way of the transfer of the right to use mandap or tarpaulin (whether or not for a specified period), then he may, subject to such conditions and restrictions, as may be prescribed, pay in lieu of the amount of tax payable by him a sum equal to one and half per cent. of the turnover of sales effected by him. Explanation.—For the purposes of this sub-section, the transfer of the right to use mandap includes the transfer of the right to use mandap, pandal, shamiana or the decoration of such mandap, pandal or shamiana and the transfer of the right to use furniture, fixtures, lights and light fittings, floor coverings, utensils and other articles ordinarily used alongwith a mandap, pandal or shamiana.".