MVAT-Maharashtra Value Added Tax- All in ONE. "Major emphasis both on Practical as well as theoretical approach." By- Santosh Mundada

1. -Maharashtra-
Value Added Tax
“Emphasis both on --Theoretical
Approach,
As well as…
Practical Approach !!”

2. -: 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.

3. -: 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

4. Registration under
MVAT
(Form-101, 30 days)
By Voluntary
(Most Welcome)
By Law
(Rs. 10 Lakhs)

5. -: Periodicityof 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

6. -: 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%

7. -: Revised Return :-
Whichever is EARLIER !!

8. -: 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.;

9. :-: BasicThemebehindITC :-:
CST VAT
VAT CST
CST CST
“Jis Government ki
jeb m paisa gya,
Vo Government credit
degi !!” (sub. To
MVAT conditions)
VAT VAT
Set off
Set off
Set off
Set off

10. -: 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.

11. -: 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

12. To whom VAT audit applicable ??
• As per Sec. 61(1) ---
i. Turnover > Rs. 1 cr.
ii. Liquor license

13. -: 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.

14. -: 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.

15. 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:-

16. 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:-

17. -: 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

18. :: 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

19. Santosh S. Mundada
Pune

20. Thanking You
Special Thanks To :
All My Office colleague
A Presentation By-
Santosh S. Mundada