-Maharashtra-Value Added Tax

“Emphasis both on --Theoretical Approach,

As well as…

Practical Approach !!”

-: History of MVAT :-

• Implemented in April, 2005.

• Sales Tax gets converted into VAT.

• “ Haryana ” 1st State in the country that had adopted the taxation on 1 April 2003.

-: Objective of Introducing :-

Avail credit on inputs leading to

Cost efficiency

Equal distribution of tax amongst the dealer.

Nullify cascading effects.

Easy computation of

tax

Prevent distortion in

trade & economy

Registration under MVAT

(Form-101, 30 days)

By Voluntary

(Most Welcome)

By Law

(Rs. 10 Lakhs)

-: Periodicity of Return :-

Composition Scheme

Package Scheme of Incentive

All other

OR

Tax liability, PY Rs. 1 lakhs

OR

Tax liability, > Rs. 1 lakhs, but upto Rs. 10 lakhs

OR

Newly register dealer, w.e.f., May, 2010

Half Yearly,

30th day of following month

Quarterly

Tax liability, > Rs. 10 lakhs

Monthly

21st day of following quarter/month

-: Return & Payment :-

• Return (Form 231 to 235)

• Payment- Form 235

• Payt. Within due date 10 days grace period.

(Paisa jaldi dogy, toh 10 din k liye Raja banogy !!)

• Late Payment @ 15%

-: Revised Return :-

Whichever is EARLIER !!

-: Ineligible Purchases for ITC :-

• Unregistered dealer;

• Composition Scheme dealer;

• Invoice not available;

• Not showing tax amt. separately;

• Goods used in manufacture of exempted goods;

• Branch trf. - Outside state;

• Goods imported;

• Inter state purch.;

:-: Basic Theme behind ITC :-:

CST VATVAT CST

CST CST

“Jis Government kijeb m paisa gya,Vo Government creditdegi !!” (sub. To

MVAT conditions) VAT VAT

Set off

Set off

Set off

Set off

-: Input Tax Credit- ITC :-

• On Capital Goods :-

Machinery, Components- full set-off;

Furniture, fixture, Off. Equip.- 3% retention;

MH- Credit available in month of purchase.

• On Miscellaneous Goods :-

Dr. to P&L a/c.

-: Input Tax Credit- ITC :-

• On Fuel :-

@ 3% retention

• Newly reg. dealer purchase (including CG) before reg. NOT sold or disposed before reg. in same FY

To whom VAT audit applicable ??

• As per Sec. 61(1) ---

i. Turnover > Rs. 1 cr.

ii. Liquor license

-: Set off- Purchases:-

a) Passenger Motor Vehicles/Parts- Engaged in such/ Leasing.

b) Motor Spirit- Dealer of MS.

c) Crude oil- Used by Oil refinery for refining.

d) Consumables or Capital Assets by Job worker- Sales only waste/scrap of goods.

e) Dealer holding COE (Certificate of Entitlement) under PSI- Gets refund of tax.

-: Set off- Purchases:-

f) Goods of Incorporeal or Intangible in nature :-

Except above, all other Ig are debarred from set off.

g) Tax paid- Works contract- Erection of IP (other than P&M)

Import/Export license, DEPB,

SIM cards & DFRC.

Software -Only to trader.

Copyrights- If resold within 12 months.

h) Building Mat. Used in erection of IP (other than P&M)- Allowed to Contractor.

i) Office Equipments, Furniture etc.(treated as CA)- 3% retention.

-: Set off- Purchases:-

Further noted that…Retailers/small dealers, hotelier, caterers, mandap decorates etc., opted for Composition Scheme - NOT entitled for any set off.

NO set off of - CST paid on Interstate Purchases;

- Any other taxes paid;

Hotelier - Set off ---prohibited, if not pertaining to sale or service of food/drinks.

-: Set off- Purchases:-

-: Credit c/f or b/f :-

Tax on Total Sales < ITC available

Excess credit adjusted for same year ;

OR C/f to next year ;

Refund application Within 3 years

Form 501

:: Various Form’s under CST Act ::

“B”-Certificate

for Reg.

“C”-Declaration by P.dealer to obtain goods at

lower cost

“E-I/II”-Certificate for Sale in

transit

“H”-Certificate of

Export

“A”- Appli. For

Registration

“F”-By branch/

consignment agent for

goods rec. on stock trf.

“G”-Indemnity bond, if C-Form lost

“I”-Certificate

by SEZ unit

“J”-Issued by Foreign

Diplomatic Mission or

Consulate in India or the UN agency

Santosh S. MundadaPune

Thanking You

Special Thanks To :All My Office colleague

A Presentation By-

Santosh S. Mundada