mvat- practical approach as well as theoretical approach- by santosh mundada
TRANSCRIPT
-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