Section 6A in Maharashtra Sales Tax on the Transfer of property in goods involved in the execution of Works Contracts (Re-enacted) Act, 1989
6A. Composition of Tax.
(1)Notwithstanding anything contained in section 6, the dealer may, in lieu of the amount of tax payable by him under the provisions of this Act, pay lump sum tax by way of composition (i) an amount equal to two per cent of total contract value of the construction contracts and four per cent of the total contract value in case of other contracts, received or receivable without any deduction whatsoever during the given period; or (ii) an amount equal to eight per cent of the total contract value of the works contract, after deducting from such value.(a)the turnover of purchases in respect of goods covered by the Schedule A to the Bombay Sales Tax Act, 1959;(b)the turnover of purchases in respect of goods which are totally exempt from the payment of the tax unconditionally under any notification issued under-section 41 of the Bombay Sales Tax Act, 1959;(c)the turnover of purchases of goods provided such purchases are effected from(i)a dealer registered under the Bombay Sales Tax Act, 1959 and whose registration Certificate is in force on the date of such purchases; or(ii)a person not registered the Bombay Sales Tax Act, 1959, but the tax under the said Act has been paid on the goods so purchased.[Explanation. - For the purposes of this sub-section, the expression "construction contract " shall mean such contract as may be notified-by the 'State Government from time to time.] [Explanation was inserted by Maharashtra I alf,2000, dated I 1.2000 section 3(l).];(1A)[ Notwithstanding anything contained in section 6 or subsection (1) of this section, a dealer who has entered into any contract for execution of work during the period commencing on the 1st April 1992 and ending on the 30th April 1998, and has commenced execution during such period and the execution of such contract has continued on or after 1st May 1998, may opt to pay in lieu Of tax payable by him under the Act, in lump sum by, way of composition, an amount equal to a prescribed percentage of the total contract value of such contract and different percentage may be prescribed for different classes of contracts.(2)The lump sum tax payable under sub-section (1) shall be paid by the dealer on or before the date prescribed for submission of the return, in proportion to the work executed and goods used in the execution thereof during the period for which the return has been filed.] [Sub-section (1A) was inserted by Maharashtra 17 of 1999, w.e.f. 6.2.1999.](3)[***] [Sub-section (3) was deleted by Maharashtra 16 of 1995, w.e.f. 1. 10. 1995, Section 63(n).](4)A dealer to who opts for lump, sum payment under subsection (1) or sub-section (1A) shall not recover from the person form who the works -contract is or is being executed, any amount in excess of the lump sum amount paid or payable by him by way of composition under this section.(5)If any dealer has recovered any excess amount in, contravention of sub-section (4), and has not paid the same into a Government Treasury, he shall be liable to pay the same, and if he has paid the same to the Government Treasury no refund in respect of such excess amount paid by him shall be granted; and such excess amount recovered in contravention of sub section (4) shall be deemed to be tax collected under this Act, and such excess amount shall be liable to be forfeited to the State Government and the procedure as laid down in section 37 and the provisions of sub-section (4), (6) and (6A) of section 38 of the Bombay Sales Tax shall mutatis mutandis apply, to such forfeiture, if any.(6)All permissions granted to the registered dealers for payment of lump by way of composition prior to the commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 1998 (Maharashtra21 of 1998) under this section, shall stand cancelled.
