The sales tax is the most important source of revenue to the State as it contributes to the exchequer more than any other head of revenue.

Bombay Sales Tax Act, 1959

The Bombay Sales Tax Act, 1959 (Bom. LI of 1959), which governs the levy and collection of sales tax replaced on January 1, ' 1960 the earlier Act which was in operation till then. Different systems of sales tax were in operation in different component parts of the State under the earlier Acts. Under the Bombay Sales Tax Act, 1959, a system which combined the two point levy in respect of certain goods with a single point levy at the first stage in respect of goods and single point levy at the penultimate stage of sale by the licensed dealer to a dealer without a licence, was introduced. For the ordinary registered dealer holding neither authorisation nor licence, recognition or permit and who obtained his requirements on payment of tax to other registered dealers, retail sales tax on sales of certain goods at 1/4 per cent, on the turnover of sales of such goods was introduced.

Dealers liable to pay Tax

The turnover in the case of manufacturer or importer of goods into the State of Maharashtra for liability to register and pay tax is fixed at Rs. 10,000 while the turnover for other dealers is fixed at Rs. 30,000. Dealers dealing purely in non-taxable goods are not liable to pay tax and are not required to obtain certificates of registration.

Besides registration certificate, the Act provides for the issue of other privileged documents viz., licence, authorisation, recognition and permit. A dealer holding a licence can purchase goods free of general sales tax for resale subject to certain conditions. An authorisation enables a dealer holding it to purchase goods free of both the sales tax and the general sales tax for sale in the course of inter-State trade and commerce or in the course of export subject to prescribed conditions. A recognition enables a (manufacturer to purchase free of both the sales tax and the general tax, certain goods required by him for use in the manufacture of goods for sale and for use in the packing of goods so manufactured. A permit enables a registered dealer who buys for an agreed commission on behalf of a principal mentioned in his books of account, to purchase such goods free of tax under prescribed conditions.

A dealer registered under the Central Sales Tax Act, 1956, but who is not liable to pay tax under section 3 of the Bombay Sales Tax Act, 1959, shall nevertheless be liable to pay tax-

(a) on sale of goods in respect of the purchase of which he has furnished a declaration under sub-section (4) of section 8 of the Central Sales Tax Act, 1956, and

(b) on sale of goods so purchased have been used; and accordingly, the provisions of sections 7 to 12 shall apply to such sales, as they apply to the sales made by a dealer liable to pay tax under section 3 of the Bombay Sales Tax Act, 1959.

Every dealer who is liable to pay tax under sub-section (1) shall, for the purposes of sections 32, 33, 34, 35,.36, 37, 46, 47 and 48 be deemed to a registered dealer.

The Act contains 5 schedules detailing various classes of goods subjected to sales tax and general sales tax.

The sale of a large number of goods consisting mostly of articles of consumption of comparatively poorer sections of the community is exempted from tax altogether. The rates of tax on sales of goods liable to tax, vary according to the cost of goods, the economic conditions of the section of the population which mainly consumes the goods and other factors such as imposition of duty in some other States on goods like cloth, sugar, etc.

Administrative Organisation.

For the purpose of the administration of the Sales Tax Act in Dhulia district, two Sales Tax Officers have been appointed with headquarters at Dhulia. The Sales Tax Officers exercise the powers delegated to them under the Bombay Sales Tax Act, 1959. They register the dealer liable to pay tax and grant documents such as licence, authorisation, recognition and permit to those who are eligible for the same. The Sales Tax Officers receive periodical returns from the dealers showing the turnover during the period and the tax payable by them. They verify the returns and pass orders of assessment. They issue notices for demand, if any, after assessment and take necessary steps to recover the tax assessed. The Sales Tax Officers are primarily responsible for the administration of the office.

The Sales Tax Officers at Dhulia are subordinate to the Assistant Commissioner of Sales Tax (Administration-cum-Appeals), Central Division, Range I, Nasik. The Sales Tax Officers seek clarification and advice from the Assistant Commissioner who hears appeals filed by the assessees aggrieved against the assessment orders passed by the Sales Tax Officers.

The officer next above the Assistant Commissioner of Sales Tax (Administration-cum-Appeals), Nasik, is the Deputy Commissioner of Sales Tax, Central Division, Poona. He enjoys administrative as well as appellate authority over the Assistant Commissioner.

The Commissioner of Sales Tax, Maharashtra State, with headquarters at Bombay is the chief controlling, inspecting, co-ordinating, executive and administrative authority in the sales tax matters and is directly responsible to the government.

The Maharashtra State Sales Tax Tribunal hears appeals/revisions from the assessees aggrieved against the orders of the Commissioner of Sales Tax, the Deputy Commissioner of Sales Tax and the Assistant Commissioner of Sales Tax,

Reference application can be filed to the High Court on a question of law arising out of the orders of the Maharashtra Sales Tax Tribunal.

Statistics of Collection

The following statement shows the number of registered dealers and net revenue derived from sales tax during the years from 1960-61 to 1963-64:-


No. of Regd dealers

Tax Collected