MEDICO LEGAL INFO.doc

Disclaimer: The Medico Legal Information provided here is obtained from various sources without any legal binding upon us. It is offered as a value addition service without any cost. You may verify the same with appropriate authority about the same. We shall not be responsible for any consequences or lapse based on it.MEDICO LEGAL INFORMATION NO.1:Sub: Applicability of Value Added Tax on Medicine 4% on Maximum Retail Price.Ref: Clarificatory circular of S.T.Department in the matter of Taxation of Medicines under the Maharashtra Value Added Tax Act 2002 (Mah. IX of 2005)-Special provisions regarding taxation of medicines.A trade circular No: VAT-2005/Act/VD-1/1T of 2005 issued by Sales Tax department dated 1st April 2005 has been received by us, according to which they have elaborated the special provisions regarding taxation of medicines. The same are as follows:1. VAT will be applicable on MRP for sale of Medicines as per Section 2, clause (25), explanation-IV of MVAT Act & Rules.2. Tax on MRP for sale of Medicines at first point only (Manufacturer/Importer). 3. For Wholesalers, Distributors, Stockists, second seller etc.a) Turnover of sales & purchase relating to medicines not to be shown in periodic returns.b) Second Sales of Medicines by Wholesalers, Distributors, Stockist, Semi-wholesalers and retailers would not attract the levy of tax.c) The Wholesalers, Distributors, Stockists, Retailers etc. will not get set-off on their prior purchases & stocks of 31st March 2005.d) For sales of other than medicines, normal VAT rules apply i.e. schedule rates should be charged, shown separately and file regular returns. Normal set-off for closing stocks will be eligible for it. 4. There is an option for composition scheme for retail chemists.5. They will have to show turnover of medicines separately in their returns and pay composition tax on difference between sales & purchase relating to other than medicines.MEDICO LEGAL INFORMATION NO.2:Sub: Guidelines in the matter of dealing with medicines falling under Narcotics and Psychotropic Substance Act.TAKE EXTRA CARE WHILE DEALING WITH MEDICINES CONTAINING NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (N D P S ): The purchase and sale of drugs that are marked as “NRx”; Narcotic and Psychotropic Drugs, Morphine based analgesics and other anti-depressants are covered under Narcotic and Psychotropic Drugs Act. As per the provision in the Rules you should keep the record of sale and purchase for all such drugs. So be cautious while dealing not only in following medicines but other Sedative, Hypnotics, Neuro-Muscular relaxants (as per the list attached).All the sales and purchases of such drugs are covered not only under Drugs and Cosmetics Act 1945, but, also under Narcotic and Psychotropic Drugs Act 1985. Since these drugs are found to be habit forming and having adverse effects if taken without care, hence it is advisable to be extra cautious while purchasing, storing and selling it. All our staff should be instructed to follow the necessary guidelines given below and comply with the rules.GUIDELINES FOR DEALING IN NDPS-DRUGS1. Insist for valid prescription for all Narcotic & Psychotropic Substances (NDPS) containing medicines. 2. DONT sell without proper/valid prescription.3. While preparing bill/invoice, please write name & address of doctor and patient.4. Endorse the prescription stating the dose/quantity dispensed and date when drug is issued. 5. Do not give more than prescribed quantity.6. DONT sell it in large quantity to any unauthorised person.7. Maintain proper records of sales and purchases of NDPS medicines. 8. Store safely all the NDPS medicines under the supervision of qualified Pharmacist.9. If possible, mark each medicine with different colour label (bar code) and put suitable warning for your staff while handling these medicines.10. Purchase minimum quantity possible.MEDICO LEGAL INFORMATION NO 3:Ref: Reduction in VAT from 12.5% to 4% on products from which non-alcoholic beverages and soups are prepared with effect from 1-2-2006:Sales Tax Department vide their notification no 1505 / CR 382 / Taxation-1, dated 21st January 2006 has made an amendments in entry 107 (11) (g) of Schedule C and the same has been made effective from 1st February 2006.Accordingly, all such products in the form of Powders, tablets, cubes, crystals and other solids or liquids from which non-alcoholic beverages and soups are prepared shall be taxed 4% on sale/trade price with effect from 1st February 2006 (these products were hitherto were taxed 12.5% on sale/trade price)You are therefore requested to make immediate change and charge at 4% rate on trade/sale price while supplying in trade. + M E D C I N E S +INSTRUCTIONS TO CUSTOMERS1. PLEASE SHOW MEDICINES TO YOUR DOCTOR BEFORE USING IT.2. CHECK EXPIRY DATE BEFORE USING THE MEDICINES.3. TAKE / USE THE MEDICINES AS PRESCRIBED BY YOUR DOCTOR.4. STORE MEDICINES AS PER STORAGE CONDITION.5. KEEP AWAY FROM CHILDREN.6. DISCARD/DESTROY UNUSED MEDICINES.7. DO NOT ALTER / CHANGE PRESCRIBED DOSAGE.8. IN CASE OF ANY PROBLEM / REACTION, PLEASE INFORM YOUR DOCTOR ABOUT IT.9. AVOID SELF MEDICATION. IT IS DANGEROUS.10. PRESERVE ALL YOUR PRESCRIPTIONS FOR FUTURE REFERENCE Format of an ideal prescriptionPHARMACYName of Patient: _Tel_Address:_Name of Doctor:_ Tel_Address:_Cash Memo No:_Dt_ Medicines DispensedDosage Date for Refill_ _ _ _ _ _ _ _ _IMPORTANT INSTRUCTIONS TO