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The Schedule and the Exemptions

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Chapter Twenty-Three

Syllabus topic 1, "Registration of business under The Maharashtra State Tax on Professions, Trades, Callings and Employments Acts, 1975."

Pages 58 to 60 of 80

Two provisions, and both are asked

Schedule I says who pays and how much. Section 27A says who does not pay at all. A question on liability is not fully answered without both.

Schedule I, read as a system

Section 3(2) charges a person "falling under one or the other of the classes mentioned in the second column of Schedule I ... at the rate mentioned against the classes of such person in the third column".

So the Schedule has two columns that matter: a class of persons, and a rate.

Entry 1 is the only entry with slabs. Every other entry that touches a business or a profession charges a flat Rs. 2,500 per annum, which is the ceiling in the first proviso to section 3(1) and under Article 276 of the Constitution.

Entry 1, salary and wage earners

Monthly salary or wagesTax
Men, not exceeding Rs. 7,500Nil
Men, exceeding Rs. 7,500 but not exceeding Rs. 10,000Rs. 175 per month
Men, exceeding Rs. 10,000Rs. 200 per month except February, Rs. 300 for February, being Rs. 2,500 a year
Women, not exceeding Rs. 25,000Nil
Women, exceeding Rs. 25,000Rs. 200 per month except February, Rs. 300 for February, being Rs. 2,500 a year

Entry 1A charges persons notified under section 4B at Rs. 2,500 per annum.

Two features to name. The exemption limit for women is Rs. 25,000 against Rs. 7,500 for men. And the February instalment is Rs. 300, so that eleven months at Rs. 200 and one at Rs. 300 come to exactly Rs. 2,500.

The entries a business meets

EntryClass of personsRate
2Legal practitioners, medical practitioners and dentists, technical and professional consultants including architects, engineers, tax consultants, chartered accountants, actuaries and management consultants; insurance agents and surveyors; commission agents, dalals and brokers; contractors; diamond dressers and polishers with a year's standingRs. 2,500
3Members of recognised associations under the Forward Contracts (Regulation) Act 1952; members of recognised stock exchanges; remisiersRs. 2,500
4Building contractors; estate agents, brokers and plumbers with a year's standingRs. 2,500
5Directors of companies other than those nominated by Government, excluding directors of companies whose registered offices are outside Maharashtra who do not reside in the StateRs. 2,500
19(a)Each partner of a firm, whether registered under the Indian Partnership Act 1932 or not, engaged in any profession, trade or callingRs. 2,500
19(b)Each partner of a limited liability partnershipRs. 2,500
20Each co-parcener, not being a minor, of a Hindu undivided family engaged in any profession, trade or callingRs. 2,500
20APersons registered under the Maharashtra Goods and Services Tax Act, 2017Rs. 2,500
21Persons not in any preceding entry engaged in any profession, trade, calling or employment, in respect of whom a notification is issued under the second proviso to section 3(2)Rs. 2,500
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