This document provides an overview of the assessment process under the Maharashtra Value Added Tax (MVAT) Act. Some key points:
1) Assessment can be done through self-assessment if returns are filed on time, or the tax authority can issue notices for assessment. Notices can be issued within 2-5 years depending on return filing status.
2) The tax authority has significant powers for assessment including passing ex-parte orders without notice or hearing in some cases of late filing.
3) Single or multiple assessing authorities can assess the same dealer for the same period through regular or transaction-based assessments.
4) Re-assessments for escaped turnover can be done within 5-6 years
This document is a student project submitted by Ms. Jeenal N. Rathod on Maharashtra Value Added Tax (MVAT). It provides an introduction and overview of MVAT, including its implementation in Maharashtra on April 1, 2005. It discusses the experience of implementing VAT previously in Maharashtra from 1995 to 1999. It also examines various aspects of assessment under the MVAT Act, including self-assessment, assessment of dealers, assessment of transactions, and re-assessment procedures.
This document provides an introduction and overview of the Maharashtra Value Added Tax Act of 2002. It discusses key aspects of VAT including:
- VAT is a multi-stage tax system that taxes value added at each stage of production and distribution, allowing tax credits for taxes previously paid.
- The Act replaced the earlier Bombay Sales Tax Act and came into effect on April 1, 2005, establishing the VAT system in Maharashtra.
- Registration is required if annual turnover exceeds Rs. 1 lakh for traders or Rs. 5 lakhs for manufacturers. Importers must register regardless of turnover.
- Goods are classified into Schedules A-E and taxed at rates from 0-20% depending
This document provides an overview of the Maharashtra Value Added Tax (MVAT) system. It discusses the introduction of VAT globally and in India, as well as an overview of MVAT in Maharashtra. The key aspects covered include the MVAT Act and rules, registration requirements, tax invoices, rates and classifications, input credit/set off rules, payment requirements, returns, and TDS requirements. Methods of calculating VAT liability for normal dealers and works contractors are also summarized.
MVAT is a system of indirect taxation introduced in Maharashtra as a replacement for sales tax. It is a tax added at each stage of production and distribution, which is ultimately passed on to the consumer. VAT aims to create a uniform, transparent, and globally accepted tax structure. It benefits consumers, businesses, and the government. VAT rates in Maharashtra range from 0% to 20% depending on the good or service. MVAT applies to all dealers and importers whose annual sales or purchases exceed certain thresholds.
MVAT (Maharashtra Value Added Tax) is a multi-stage tax system applied to sales at each stage of production and distribution. VAT aims to tax value addition at each stage, allowing businesses to claim credit for taxes paid on purchases. The key aspects covered are registration limits, tax rates, forms for filing returns, payment due dates, input tax credit provisions, and penalties for non-compliance.
Like Central Government, State Governments also make changes in taxes covered in their fold. One major tax collected by States is VAT. Following the footprints of Center, States also make lots of changes under their VAT Act. It is difficult and crucial to get along with the changes proposed in all State VAT Acts. Hence, after hours of research, we have summarised the changes made by States in their VAT Act till date. We have also included reasons contributing to such change at relevant places.
This document provides an overview of the assessment process under the Maharashtra Value Added Tax (MVAT) Act. Some key points:
1) Assessment can be done through self-assessment if returns are filed on time, or the tax authority can issue notices for assessment. Notices can be issued within 2-5 years depending on return filing status.
2) The tax authority has significant powers for assessment including passing ex-parte orders without notice or hearing in some cases of late filing.
3) Single or multiple assessing authorities can assess the same dealer for the same period through regular or transaction-based assessments.
4) Re-assessments for escaped turnover can be done within 5-6 years
This document is a student project submitted by Ms. Jeenal N. Rathod on Maharashtra Value Added Tax (MVAT). It provides an introduction and overview of MVAT, including its implementation in Maharashtra on April 1, 2005. It discusses the experience of implementing VAT previously in Maharashtra from 1995 to 1999. It also examines various aspects of assessment under the MVAT Act, including self-assessment, assessment of dealers, assessment of transactions, and re-assessment procedures.
This document provides an introduction and overview of the Maharashtra Value Added Tax Act of 2002. It discusses key aspects of VAT including:
- VAT is a multi-stage tax system that taxes value added at each stage of production and distribution, allowing tax credits for taxes previously paid.
- The Act replaced the earlier Bombay Sales Tax Act and came into effect on April 1, 2005, establishing the VAT system in Maharashtra.
- Registration is required if annual turnover exceeds Rs. 1 lakh for traders or Rs. 5 lakhs for manufacturers. Importers must register regardless of turnover.
- Goods are classified into Schedules A-E and taxed at rates from 0-20% depending
This document provides an overview of the Maharashtra Value Added Tax (MVAT) system. It discusses the introduction of VAT globally and in India, as well as an overview of MVAT in Maharashtra. The key aspects covered include the MVAT Act and rules, registration requirements, tax invoices, rates and classifications, input credit/set off rules, payment requirements, returns, and TDS requirements. Methods of calculating VAT liability for normal dealers and works contractors are also summarized.
MVAT is a system of indirect taxation introduced in Maharashtra as a replacement for sales tax. It is a tax added at each stage of production and distribution, which is ultimately passed on to the consumer. VAT aims to create a uniform, transparent, and globally accepted tax structure. It benefits consumers, businesses, and the government. VAT rates in Maharashtra range from 0% to 20% depending on the good or service. MVAT applies to all dealers and importers whose annual sales or purchases exceed certain thresholds.
MVAT (Maharashtra Value Added Tax) is a multi-stage tax system applied to sales at each stage of production and distribution. VAT aims to tax value addition at each stage, allowing businesses to claim credit for taxes paid on purchases. The key aspects covered are registration limits, tax rates, forms for filing returns, payment due dates, input tax credit provisions, and penalties for non-compliance.
Like Central Government, State Governments also make changes in taxes covered in their fold. One major tax collected by States is VAT. Following the footprints of Center, States also make lots of changes under their VAT Act. It is difficult and crucial to get along with the changes proposed in all State VAT Acts. Hence, after hours of research, we have summarised the changes made by States in their VAT Act till date. We have also included reasons contributing to such change at relevant places.
VAT (value added tax) has replaced sales tax in India, including in Maharashtra, to establish a uniform, transparent taxation system. VAT is collected from producers and sellers on the incremental value added at each stage of production and distribution. In Maharashtra, VAT is governed by the MVAT Act and applies to the sale of goods at rates from 1-20% according to schedules. Key VAT concepts include the definition of goods, dealers, importers, and sales/purchase prices. Manufacturers and businesses with over 1 lakh annual sales or 10,000 rupees of taxable purchases/sales annually must register and file VAT returns electronically monthly, quarterly, or half-yearly.
Service tax is an indirect tax levied on certain taxable services in India. It is paid by the service provider to the government. Over time, the scope of service tax has expanded to include more services. Its goal is to lower the tax burden on businesses and industry while maintaining government revenue.
The services sector makes up a large portion of India's economy. Imposing service tax on this growing sector allows the government to tax its substantial contribution to GDP. As international trade and manufacturing see reduced tax burdens, service tax helps maintain government revenues. Starting from only three services in 1994, service tax receipts have increased as more services are added.
Service tax is calculated as a percentage of the gross value charged
This document is a project report submitted by Miss Vanita Laxman Kajale to the N.E.S Ratnam College of Arts, Science & Commerce in partial fulfillment of the requirements for a Master's degree in Commerce. The report discusses Value Added Tax (VAT) implementation in the state of Maharashtra, India. It includes an introduction to VAT, details on VAT registration, calculation of tax liability, filing returns and payment procedures, record keeping requirements, and appeals processes in Maharashtra. The project was guided and reviewed by the lecturer Prof. Rajiv Mishra.
Registration of MVAT (Maharashtra Value Added Tax)Tushar Kharate
This document provides information about registration under the Maharashtra Value Added Tax (MVAT) Act of 2002. It outlines the types of dealers liable to pay tax, including those with turnover above certain limits. It also details the documents required for initial registration and registration changes, such as proof of business constitution, address, bank account, and payment of fees. Finally, it lists the tax rates for different schedules of goods under the MVAT Act.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
- Input tax credit (ITC) allows registered dealers to claim credit for taxes paid on inputs used for manufacturing or selling goods.
- There are various restrictions and conditions for claiming ITC, including only being able to claim it for goods/services purchased from registered dealers, restrictions on certain capital goods, automobiles, and exempted goods.
- Detailed records including tax invoices must be maintained to substantiate ITC claims which are subject to review and reversal by assessing authorities.
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
Final gst vth unit payments of tax interest penalty and tdd&tcsSureshBabuMannarColl
1. The document discusses various ways of paying GST in India, such as using input tax credits, cash payments, or tax deduction at source.
2. It explains the different entities responsible for tax payments like suppliers, recipients, tax deductors, and e-commerce operators. Deadlines vary from monthly to quarterly based on the entity.
3. Input tax credits must be used in a priority order of IGST first, then CGST and finally SGST/UTGST. Non-payment can result in interest charges, penalties, and in serious cases, prosecution.
Gst tax invoice-debit note-credit note & returns ivth unitSureshBabuMannarColl
1. The document discusses various types of invoices and bills required under GST law including tax invoices, debit notes, credit notes, and returns.
2. A tax invoice must be issued for all taxable supplies made by registered persons and must contain information such as supplier details, recipient details, tax rates, and HSN codes.
3. Bills of supply are issued instead of tax invoices for exempt supplies, supplies by composition scheme taxpayers, and supplies below Rs. 200 to unregistered persons.
The document provides information about input tax credit under the Goods and Services Tax (GST) in India. It defines input tax credit as the credit of taxes paid by a supplier on purchases of input goods, services, or capital goods. The key principles discussed are the seamless flow of credit across the supply chain, conditions for claiming ITC including tax invoices and returns, eligible and blocked credits, and components of ITC including input goods, services and capital goods.
This document contains questions and answers related to VAT audit issues. Some key points addressed include:
- A dealer changing from the composition scheme to the normal VAT system does not need to declare stock on hand from the previous year.
- A works contractor under the composition scheme is not eligible for standard deductions before tax is levied.
- Excess purchases in one period under the composition scheme for retailers cannot be adjusted in later periods.
- A contractor can issue Form C for materials purchased from outside Maharashtra if used for works contracts within Maharashtra.
- Modifying the CST registration to include a capital asset is necessary before Form C can be issued for its purchase.
This document provides an overview of value added tax (VAT) including:
1. VAT is an indirect tax assessed on the value added to goods and services at each stage of production and distribution. Over 130 countries have introduced VAT.
2. VAT was introduced in India in 2005 and is administered by the government revenue authority. It is a multi-stage tax collected fractionally at each stage of production/distribution.
3. Advantages of VAT include increased tax base and revenue, transparency, avoidance of double taxation, coordination with income tax, and simplification compared to other tax systems.
This document is a project report on Service Tax submitted to the University of Mumbai by Vivek Shriram Mahajan. It contains an introduction to the subject, definitions of key terms, an overview of the need for and authority of Service Tax in India. It discusses some key aspects of Service Tax such as chargeability, the negative list of exempted services, and conclusions. The project report was completed to fulfill requirements for an M.Com degree in Accountancy.
- Input tax credit (ITC) allows businesses to claim a credit for taxes paid on inputs against the GST charged on their outputs. This avoids double taxation.
- To claim ITC, businesses must be registered under GST and hold a valid tax invoice. The goods or services must have been received and taxes paid to the government. ITC can only be claimed for business purposes and not for exempt or personal supplies.
- Businesses must file their ITC claims in GSTR-3B returns. They can provisionally claim up to 20% of the ITC shown in their GSTR-2A. Full ITC is claimed after matching with supplier returns. ITC must be reversed if invoices remain
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
- The document discusses Philippine tax regulations regarding the withholding of taxes at source, including final withholding tax, creditable withholding tax, and the withholding of value-added tax.
- Under final withholding tax, the full tax is withheld by the payor and constitutes full payment by the payee. Creditable withholding tax approximates but may not fully cover the payee's tax liability, who must still file a return.
- The regulations specify VAT withholding rates for goods, services, and other payments made by the government. Designated officers are liable for properly withholding and remitting taxes.
Value added tax (VAT) is a multi-point tax collected on value addition at different stages of sale. State VAT laws are enacted based on a white paper from the empowered committee of state finance ministers that provided the basic design. While the basic design is harmonized, states have freedom for variations consistent with the design. The purpose of VAT introduction was to harmonize tax structures across states and rationalize the overall tax burden.
Service tax voluntary compliance encouragement scheme, 2013ANAND KANKANI
This document provides details about the Service Tax Voluntary Compliance Encouragement Scheme introduced in India in 2013. Key points:
- The scheme allows service providers who have not filed returns or paid taxes since 2007 to disclose true tax liabilities and pay owed taxes to avoid penalties.
- Eligible taxpayers can pay disclosed taxes in installments by 2014 to be exempt from interest and penalties if taxes are otherwise paid on time.
- The goal is to encourage voluntary compliance and collect unpaid taxes from the many service providers who are not currently filing returns.
AUDIT ASSIGNMENT- M.COM PART II – SEMESTER IV, AUDIT REPORT, CARO 2015, AUDIT REPORT OF JINDAL STEEL & POWER LIMITED, SA 230 AUDIT DOCUMENTATION (REVISED), SA 500: AUDIT EVIDENCE.
This document is a project report submitted by Soumeet Sarkar to the University of Mumbai for their Master of Commerce program. The report focuses on Audit Documentation as outlined in SA 230 and Audit Evidence as outlined in SA 500. The report includes an introduction that provides background on auditing, defines auditing, discusses the origin and development of auditing standards in India and internationally. It then outlines the content which will cover SA 230 on audit documentation and SA 500 on audit evidence.
VAT (value added tax) has replaced sales tax in India, including in Maharashtra, to establish a uniform, transparent taxation system. VAT is collected from producers and sellers on the incremental value added at each stage of production and distribution. In Maharashtra, VAT is governed by the MVAT Act and applies to the sale of goods at rates from 1-20% according to schedules. Key VAT concepts include the definition of goods, dealers, importers, and sales/purchase prices. Manufacturers and businesses with over 1 lakh annual sales or 10,000 rupees of taxable purchases/sales annually must register and file VAT returns electronically monthly, quarterly, or half-yearly.
Service tax is an indirect tax levied on certain taxable services in India. It is paid by the service provider to the government. Over time, the scope of service tax has expanded to include more services. Its goal is to lower the tax burden on businesses and industry while maintaining government revenue.
The services sector makes up a large portion of India's economy. Imposing service tax on this growing sector allows the government to tax its substantial contribution to GDP. As international trade and manufacturing see reduced tax burdens, service tax helps maintain government revenues. Starting from only three services in 1994, service tax receipts have increased as more services are added.
Service tax is calculated as a percentage of the gross value charged
This document is a project report submitted by Miss Vanita Laxman Kajale to the N.E.S Ratnam College of Arts, Science & Commerce in partial fulfillment of the requirements for a Master's degree in Commerce. The report discusses Value Added Tax (VAT) implementation in the state of Maharashtra, India. It includes an introduction to VAT, details on VAT registration, calculation of tax liability, filing returns and payment procedures, record keeping requirements, and appeals processes in Maharashtra. The project was guided and reviewed by the lecturer Prof. Rajiv Mishra.
Registration of MVAT (Maharashtra Value Added Tax)Tushar Kharate
This document provides information about registration under the Maharashtra Value Added Tax (MVAT) Act of 2002. It outlines the types of dealers liable to pay tax, including those with turnover above certain limits. It also details the documents required for initial registration and registration changes, such as proof of business constitution, address, bank account, and payment of fees. Finally, it lists the tax rates for different schedules of goods under the MVAT Act.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
- Input tax credit (ITC) allows registered dealers to claim credit for taxes paid on inputs used for manufacturing or selling goods.
- There are various restrictions and conditions for claiming ITC, including only being able to claim it for goods/services purchased from registered dealers, restrictions on certain capital goods, automobiles, and exempted goods.
- Detailed records including tax invoices must be maintained to substantiate ITC claims which are subject to review and reversal by assessing authorities.
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
Final gst vth unit payments of tax interest penalty and tdd&tcsSureshBabuMannarColl
1. The document discusses various ways of paying GST in India, such as using input tax credits, cash payments, or tax deduction at source.
2. It explains the different entities responsible for tax payments like suppliers, recipients, tax deductors, and e-commerce operators. Deadlines vary from monthly to quarterly based on the entity.
3. Input tax credits must be used in a priority order of IGST first, then CGST and finally SGST/UTGST. Non-payment can result in interest charges, penalties, and in serious cases, prosecution.
Gst tax invoice-debit note-credit note & returns ivth unitSureshBabuMannarColl
1. The document discusses various types of invoices and bills required under GST law including tax invoices, debit notes, credit notes, and returns.
2. A tax invoice must be issued for all taxable supplies made by registered persons and must contain information such as supplier details, recipient details, tax rates, and HSN codes.
3. Bills of supply are issued instead of tax invoices for exempt supplies, supplies by composition scheme taxpayers, and supplies below Rs. 200 to unregistered persons.
The document provides information about input tax credit under the Goods and Services Tax (GST) in India. It defines input tax credit as the credit of taxes paid by a supplier on purchases of input goods, services, or capital goods. The key principles discussed are the seamless flow of credit across the supply chain, conditions for claiming ITC including tax invoices and returns, eligible and blocked credits, and components of ITC including input goods, services and capital goods.
This document contains questions and answers related to VAT audit issues. Some key points addressed include:
- A dealer changing from the composition scheme to the normal VAT system does not need to declare stock on hand from the previous year.
- A works contractor under the composition scheme is not eligible for standard deductions before tax is levied.
- Excess purchases in one period under the composition scheme for retailers cannot be adjusted in later periods.
- A contractor can issue Form C for materials purchased from outside Maharashtra if used for works contracts within Maharashtra.
- Modifying the CST registration to include a capital asset is necessary before Form C can be issued for its purchase.
This document provides an overview of value added tax (VAT) including:
1. VAT is an indirect tax assessed on the value added to goods and services at each stage of production and distribution. Over 130 countries have introduced VAT.
2. VAT was introduced in India in 2005 and is administered by the government revenue authority. It is a multi-stage tax collected fractionally at each stage of production/distribution.
3. Advantages of VAT include increased tax base and revenue, transparency, avoidance of double taxation, coordination with income tax, and simplification compared to other tax systems.
This document is a project report on Service Tax submitted to the University of Mumbai by Vivek Shriram Mahajan. It contains an introduction to the subject, definitions of key terms, an overview of the need for and authority of Service Tax in India. It discusses some key aspects of Service Tax such as chargeability, the negative list of exempted services, and conclusions. The project report was completed to fulfill requirements for an M.Com degree in Accountancy.
- Input tax credit (ITC) allows businesses to claim a credit for taxes paid on inputs against the GST charged on their outputs. This avoids double taxation.
- To claim ITC, businesses must be registered under GST and hold a valid tax invoice. The goods or services must have been received and taxes paid to the government. ITC can only be claimed for business purposes and not for exempt or personal supplies.
- Businesses must file their ITC claims in GSTR-3B returns. They can provisionally claim up to 20% of the ITC shown in their GSTR-2A. Full ITC is claimed after matching with supplier returns. ITC must be reversed if invoices remain
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
- The document discusses Philippine tax regulations regarding the withholding of taxes at source, including final withholding tax, creditable withholding tax, and the withholding of value-added tax.
- Under final withholding tax, the full tax is withheld by the payor and constitutes full payment by the payee. Creditable withholding tax approximates but may not fully cover the payee's tax liability, who must still file a return.
- The regulations specify VAT withholding rates for goods, services, and other payments made by the government. Designated officers are liable for properly withholding and remitting taxes.
Value added tax (VAT) is a multi-point tax collected on value addition at different stages of sale. State VAT laws are enacted based on a white paper from the empowered committee of state finance ministers that provided the basic design. While the basic design is harmonized, states have freedom for variations consistent with the design. The purpose of VAT introduction was to harmonize tax structures across states and rationalize the overall tax burden.
Service tax voluntary compliance encouragement scheme, 2013ANAND KANKANI
This document provides details about the Service Tax Voluntary Compliance Encouragement Scheme introduced in India in 2013. Key points:
- The scheme allows service providers who have not filed returns or paid taxes since 2007 to disclose true tax liabilities and pay owed taxes to avoid penalties.
- Eligible taxpayers can pay disclosed taxes in installments by 2014 to be exempt from interest and penalties if taxes are otherwise paid on time.
- The goal is to encourage voluntary compliance and collect unpaid taxes from the many service providers who are not currently filing returns.
AUDIT ASSIGNMENT- M.COM PART II – SEMESTER IV, AUDIT REPORT, CARO 2015, AUDIT REPORT OF JINDAL STEEL & POWER LIMITED, SA 230 AUDIT DOCUMENTATION (REVISED), SA 500: AUDIT EVIDENCE.
This document is a project report submitted by Soumeet Sarkar to the University of Mumbai for their Master of Commerce program. The report focuses on Audit Documentation as outlined in SA 230 and Audit Evidence as outlined in SA 500. The report includes an introduction that provides background on auditing, defines auditing, discusses the origin and development of auditing standards in India and internationally. It then outlines the content which will cover SA 230 on audit documentation and SA 500 on audit evidence.
Sunita Kumari Yadav completed a project report on the company audit of Tirtharoop Electricals Pvt. Ltd. as part of her Master of Commerce program at the University of Mumbai. The report was submitted under the guidance of Mr. Gajanan Wader in 2013-2014. Sunita declared that the work was original and carried out under supervision. It was evaluated and accepted for internal assessment by internal and external examiners. The report included chapters on the company background, accounting records, audit standards and processes, analysis of accounts, and a draft audit report.
Presentation on service tax Act 1994, for undergraduate commerce students of Goa University. Includes historical background, year wise tax collection e for last 20 years and procedural aspect of service tax Act 1994 with latest amendments are covered.
Service tax is an indirect tax levied on services in India. There is no separate Service Tax Act - it is imposed annually through amendments to the Finance Act of 1994. Service tax applies to the entire country except Jammu and Kashmir. The current rate of service tax is 12% plus applicable cess. Certain services are exempt from service tax under various notifications. The valuation of a service for calculating tax payable is based on the gross amount charged or the monetary value of consideration received. Various rules have been introduced to determine the scope of taxable services and calculate service tax payable for different services and situations.
VAT (value added tax) is a simple, transparent tax collected on the sale of goods throughout the chain of production and distribution. It is intended to replace sales tax in India. VAT is calculated on the value added at each stage, allowing businesses to claim credits for VAT paid on inputs. This avoids taxing the same goods multiple times under sales tax. The key features of VAT include being paid by the consumer at each point of exchange where value is added, charging tax on the difference between output and input prices, and allowing self-assessment of tax through VAT returns.
Research methodology mcom part II sem IV assignmentRutuja Chudnaik
This document appears to be a research project report on diabetes mellitus and its treatment trends submitted by a student, Rutuja Deepak Chudnaik, to the University of Mumbai. The report includes an acknowledgement section thanking those who assisted with the project, a declaration by the student, and a table of contents outlining the various sections of the report such as an introduction on diabetes, prevention, methodology, data collection and analysis procedures, findings on perceived blood glucose control, diet and medication, and conclusions. The student conducted the research under the guidance of a professor for a degree program in research methodology.
The document is a project report submitted by Rutuja Deepak Chudnaik for their M.Com degree. The report focuses on comparing the Payback Method and Internal Rate of Return (IRR) Method for capital budgeting and investment decisions. The report includes an introduction to capital budgeting, the objectives and basic principles. It also provides details on the calculation of payback period for projects with constant and uneven cash flows. The report is submitted to the University of Mumbai under the guidance of their project guide, Prof. Dhiren Kanabar.
Working capital management project report mbaBabasab Patil
This document provides an index and executive summary of a study on the working capital management of Bahety Chemicals & Minerals Pvt Ltd, located in Dandeli, India. The study examines the company's working capital over a five year period from 2006-2010. Key findings include that the company's working capital and profits have increased each year, and it maintains current and quick ratios above standard requirements, indicating a satisfactory level of working capital management and liquidity. The document outlines the objectives, scope, limitations and methodology of the study.
Tata Steel is India's largest steel company established in 1907. It is the sixth largest steel producer globally. The report discusses the auditing standards followed by Tata Steel in preparing its financial statements. It analyzes Tata Steel's auditor's reports and identifies the key auditing standards used - SA 220 on quality control, SA 501 on audit evidence for selected items, and SA 610 on using the work of internal auditors. The objectives of the study are to evaluate the effectiveness and adequacy of auditing standards at Tata Steel and analyze its financial discipline and compliance with auditing and accounting standards in India.
This document discusses a study on working capital management at Sudha Agro Oil and Chemical Industries Limited in Samalkota, India. It provides background on the oil and chemical industry in India and the company. The methodology, objectives, and limitations of the study are described. The document outlines the various chapters that will analyze the company's working capital management based on its financial statements over the last 5 years. It aims to assess the company's financial position, profitability, and viability through financial ratio analysis and interpretation.
This document discusses various indirect taxes in India including central sales tax, value added tax, central excise duty, and customs duty. It defines key terms related to these taxes such as incidence and impact of direct vs indirect taxes. It also covers the classification of taxes, authorities that levy different taxes, taxable events, and calculation of taxes. The key highlights are that indirect taxes are imposed on goods and services while direct taxes are imposed on individuals, and indirect tax burden can be shifted to consumers.
This document provides information about a student project on how internal audit can control costs. It includes:
- An introduction and title page identifying the student, college, and subject of the advanced cost accounting project.
- Pages for evaluation certificates, declarations, acknowledgements, and a table of contents of the project material.
- The start of chapter 1 on introducing internal audit, including its meaning, history, and how it relates to cost control.
The document appears to be the beginning sections of a student project outlining how internal audit functions can help control costs within an organization. It provides background information and sets up the structure for the project analysis.
Working Capital Management in Bajaj Allianz Life InsuranceSuresh kumar
This document appears to be a project report submitted by Suresh Kumar to the University of Pune to fulfill requirements for an MBA degree. The report evaluates working capital management at Bajaj Allianz Life Insurance. It includes an acknowledgment, declaration, index, and executive summary. The report will study concepts of working capital, analyze Bajaj Allianz's profitability, liquidity, and working capital position over five years. Secondary data sources like annual reports and interviews will be used.
This document provides a project report on research methodology for comparing the Apple and Samsung smartphone brands. It includes an introduction outlining the purpose and structure of the report. The structure section lists topics that will be covered such as objectives, literature review, data collection methods, data analysis methods, and conclusions. The objectives are to understand student preferences and the role of brand equity and identity in smartphone preferences. Both primary data collection through questionnaires and secondary data collection through literature are discussed. The report will analyze the data to understand brand loyalty, awareness, and identity between the two brands.
1) The document discusses the topic of service tax in India. It provides details on the basic concept of service tax, its genesis in India, approaches to service taxation, and the meaning of key terms like "service" and "consideration".
2) It examines the negative list of services exempted from service tax under section 66D of the Finance Act, including services provided by the government, Reserve Bank of India, foreign diplomatic missions, and certain agriculture, trading, manufacturing, and transport-related services.
3) The effective rate of service tax in India is currently 12.36% as per section 66B of the Finance Act.
This document summarizes the key provisions around auditor eligibility, qualifications, disqualifications, and appointment under the Companies Act 2013 in India. It discusses who is eligible to be an auditor, what qualifications they must have, situations that would disqualify them, and the process and timelines for appointing auditors for new and existing companies, including filling casual vacancies and auditor rotation requirements. It also covers the auditor's remuneration and the process for removing an auditor before the end of their term.
The document is an internship report submitted by Abhijai Singh for the partial fulfillment of a Bachelor of Commerce degree. It discusses an internship completed at R.N. Khanna & Co, an auditing and tax consultancy firm. The report includes chapters on the industry profile of accounting and taxation, a 3C analysis of the company, organizational structure, SWOC analysis, learning outcomes, and a conclusion. Key points covered include the history of taxation in India, types of direct and indirect taxes, tax slabs, deductions, and the process of filing income tax returns for clients.
This document summarizes a summer internship project on documenting and understanding the procedures and documentation of sales tax (MVAT) in Kirloskar Pneumatic Company Limited (KPCL). The project involved studying MVAT acts, rules and regulations in Maharashtra and comparing them to procedures followed at KPCL. The intern observed invoice generation, reviewed software and forms used, and analyzed VAT paid over the last 5 years. The intern found KPCL to be compliant with MVAT requirements and did not have any recommendations, noting the topic revolves around government laws and regulations.
The December 2015 Monthly Tax Update summarizes recent tax law changes and announcements in Zimbabwe. Key points include:
- The Finance Act No. 2 of 2015 was passed, introducing some amendments including reduced tobacco levies and clarifying the recovery of withholding tax payments.
- New measures exempt receipts of the Zimbabwe Asset Management Corporation and retrenchment packages over $60,000 from income tax. Pension commutations are now partially exempt.
- Transfer pricing guidelines were introduced based on OECD methods for associated transactions.
- Upcoming Tax Matrix events include a seminar on the new tax laws and a book launch in February, as well as new module-based tax courses beginning in March.
What is Value Added Tax (VAT)?
**An indirect tax imposed at each stage of production and supply.
**In general, the ultimate consumer is the one who bears the full cost of this tax while the business collects and
calculates the tax and pays it in favor of the state.
**A 5% is imposed on multiple production stages with the right to deduct taxes on inputs from taxes collected
from production outputs.
**The tax is collected each stage of the economic cycle (production, distribution, consumption)
Value added = Sale Price – Purchasing or Production cost
The document discusses the history and growth of the chartered accountant industry in India. It outlines the roles and responsibilities of chartered accountants, including conducting audits, providing taxation services, and assisting with financial reporting and management. The career prospects for chartered accountants are expanding due to factors like the implementation of GST and growth in sectors like startups, global business, and outsourcing.
The document discusses recent shifts in the UAE banking sector from a borrowers' market to a lenders' market. Specifically:
- Banks have seen declining deposits due to lower oil prices, resulting in tighter lending policies.
- Banks are now more conservative lenders, screening borrowers stringently to avoid credit losses.
- Interest rates may rise as bank liquidity decreases with fewer deposits.
- While economic headwinds are growing, UAE banks are well-positioned from experience during the 2008 financial crisis. The shift to a non-oil economy may help banks regain lending momentum as liquidity increases.
In conducting their business activities, a taxable person will incur expenses which are subject to VAT. This VAT can be recovered by a taxable person, subject to certain conditions being met. This ensures that VAT will not normally be a cost to such a taxable person. Where the taxable person is not able to recover the VAT incurred in respect of goods or services, the person is, in effect, treated as the end-consumer for those goods or services. The purpose of this chapter is to set out the circumstances in which taxable persons are entitled to recover input tax and the process they must follow to do so.
This document provides information about AMCA, an audit, tax, and advisory firm based in the UAE. It summarizes AMCA's services and clients. AMCA was established in 2010 and provides auditing, accounting, tax, and consulting services across various industries in both the public and private sectors. It has offices in Dubai and Abu Dhabi and aims to perform its work with integrity, confidentiality, and in a timely manner. The document lists many companies that have utilized and been satisfied with AMCA's services.
AMCA is a leading Auditing firm in UAE with a decade long experience. We are listed with mainland (LLC) authorities and all major free zones including DMCC, JAFZA, DAFZA, DWC, DIFC, DSO, Abu Dhabi, Sharjah, RAK, Fujairah, Ajman & Umm al-Quwain.
1. The document is a summer internship project report submitted by Raumil Hirenbhai for their MBA program.
2. The report analyzes the taxation and auditing services of Pankaj B Shah & Co, a chartered accountancy firm in Ahmedabad.
3. Raumil assisted the CA in conducting tax audits for 3 major clients and analyzed the clients' financial statements, tax computations, and the services provided by the accounting firm.
Defining a performance management system for internal resource division (ird)Ahasan Uddin Bhuiyan
The concept of performance measurement has not yet been taken it’s root in Bangladesh except performance based reward system in National Board of Revenue (NBR) and the culture of Annual Confidential Report (ACR), but it is necessary to introduce a result based performance management system in every public sector institutions and divisions. Internal Resources Division (IRD) is one of the Divisions under Ministry of Finance, for which I am going to suggest a performance management system through this assignment.
Business Development Proposal Project for a Retail Merchandising Service Comp...Dragan Ocokoljic
Company "ShowUp" will provide retail merchandising services for small to medium FMCG companies in Serbia. Currently, large merchandising companies cannot profitably serve smaller clients with limited geographic needs due to high fixed costs. ShowUp will employ 16 merchandisers focused on Serbia's 4 largest cities to serve this market gap cost effectively. The business aims to sign its first contract within 6 months and break even with 4 clients after 18 months, requiring an initial investment of 370,000 EUR. Customer satisfaction, quality execution, and innovation will be prioritized to build the ShowUp brand and ensure long term sustainability.
Business Development Proposal Project for a Retail Merchandising Service Comp...Dragan Ocokoljic
Company "ShowUp" will provide retail merchandising services for small to medium FMCG companies in Serbia. Currently, large merchandising companies cannot profitably serve smaller clients with limited geographic needs due to high fixed costs. ShowUp will employ 16 merchandisers focused on Serbia's 4 largest cities to serve this market gap cost effectively. The business aims to sign its first contract within 6 months and break even with 4 clients after 18 months, requiring an initial investment of 370,000 EUR. Customer satisfaction, quality execution, and innovation will be prioritized to build the ShowUp brand and ensure long term sustainability.
Khurrem Shahzad has over 11 years of experience in auditing, accounting, taxation, and financial advisory. He is currently the Manager of Finance at Askari Guards, where he maintains statutory books, prepares financial reports, and coordinates audits. Previously, he completed his CA articles at BDO Pakistan, gaining experience in auditing, taxation, and financial consulting. He aims to take on leadership roles reporting directly to senior management.
This document is a project report submitted by Ashish D. Kulkarni in partial fulfillment of the degree of Master of Business Administration from Vishwakarma Institute of Management. The report details a case study conducted at Ameya Management Consultancy Pvt. Ltd. on excise duties. It includes an introduction, objectives, company profile of Ameya Management Consultancy which provides consultancy services in indirect taxes, and a summary of the case study findings and conclusions.
Accounting standard 17 its application in corporate sectorVivek Mahajan
The document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai in partial fulfillment of an M.Com degree. It discusses Accounting Standard 17 on segment reporting in India. The report includes an introduction to accounting standards, a list of Indian accounting standards, definitions related to segment reporting, and an analysis of the application of segment reporting in an Indian conglomerate called the Tata Group.
- The GST Act provides legal recognition and clarity for e-commerce models in India.
- It defines key terms related to e-commerce such as "electronic commerce", "aggregator", and "electronic commerce operator".
- For e-commerce companies, the warehousing strategy may need to be re-engineered under GST to meet client proximity needs rather than tax considerations alone.
This document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai for their M.Com program. The report includes an introduction to auditing, the history of auditing, principles of auditing, types of audits, features of company accounts, objectives of a company audit, and a conclusion. It covers topics like the definition of auditing, principles like integrity and independence, types of audits, requirements for company financial statements, and the purpose of a company audit.
GAZT VAT guide on Financial Services - EnglishFarhan Osman
This guideline is directed for businesses involved in the Financial Services sector, including commercial banks, insurers, asset financing companies; or any business that provides financial services as part of its overall activities.
India - targeted stimulus continues (Tranche 2)Rutuja Chudnaik
In the latest stimulus package announced by the Finance Minister, priority was given to migrant labourers, farmers, and small businesses. Measures included free food grains and portability of ration cards for migrants, interest subvention and credit boosts for farmers and small businesses, and affordable housing schemes. The total stimulus package amounted to INR 3.16 trillion, although the actual fiscal cost will be lower, estimated at INR 35 billion for food grains for migrants and INR 15 billion for interest subvention on small loans. The targeted support aims to provide relief to those most impacted by the pandemic.
Future forward - COVID 19 Government Stimulus (Tranche 1)Rutuja Chudnaik
details of the Rs 20 lakh crore economic stimulusKey Takeaways:Tranche has about 15 different measures -
six of them for MSMEs
two for Employee provident funds
two for NBFCs
two for MFIs
one to discoms
three tax related
Classified as Others -
one to real estate
one contractors
A bank guarantee is a commercial instrument in the nature of a contract, intended between two parties, to secure compliance with the contract. It is an off-shoot of the main contract between two parties. It is a guarantee made by a bank on behalf of a customer. There are three parties to guarantee, i.e., surety, principal debtor (bank’s customer) and creditor.
We Tube
Employee Engagement - Prof. Vinima Sharma
The Basics of Micro Finance - Sujata Iyer
Goods and Services Tax-Daulat Wadwa
Building A Winning Resume - RM Saravanan
Handling Criticism With Grace - Ms. Suruchi Yadav
We Lounge
Mr. Ranjeet Mudholkar (Chairman & CEO FPSB– Financial Planning Standards Board of India)
Mr. Prasanth Nair - Global Head – HR – Cipla
Mr. Yogesh Naik, Director - Research & Innovation IGATE Patni
Newswire
5 Reasons Sustainability Drives Innovation
11 Daily Habits Of Exceptionally Successful People
Three Things You Need To Do To Achieve Success
Banks Are Thriving With Sophisticated Digital Signage
In The Age Of Branchless And Paperless Banking
Amazon India Gets RBI Nod For Mobile Wallet
RBL Bank Now Among India’s 10 Most Valuable Banks
7 Traits Of Exceptional Leaders
Why There's A Huge Opportunity With India’s Uninsured
India Ranks As Second-largest Market For LinkedIn
BREXIT
Brexit 1
What is Brexit? 1
What are the main arguments for Brexit? 1
What are the arguments against Brexit? 2
Why Britain voted to leave the EU 2
What could the prospect of Brexit mean for India? 2
Brexit And Indian Corporates In The Long Run 3
Brexit And Indian Corporates In The Short Run 4
Brexit and IT Corporates 4
Brexit and Pharmaceutical Industry 5
Brexit and Auto Component Manufacturers 5
Strategies to survive the BREXIT impact for Indian Corporates 5
Way Forward 8
This document provides instructions for handling accounts with incomplete records or single entry bookkeeping systems. It discusses two approaches - 1) converting the incomplete records into final accounts and 2) calculating profit. For the conversion approach, it outlines seven rules, including gathering all information, preparing necessary accounts like debtors/creditors, old and new balance sheets, trading and profit & loss accounts. It notes the use of gross profit ratios to calculate missing sales or cost values. The rules also cover handling missing cash/bank values and tallied accounts. It emphasizes using all given information and ratios to calculate missing values.
This document contains a schedule of subjects, dates, and chapters for various courses including Audit, Advanced Accounting, Costing, Financial Management, Direct Taxation, Law, Accounting, and Information Technology & Systems Management. For each date listed, there is an associated subject and chapter. The schedule spans from September 15 to November 15 and covers a range of accounting, finance, taxation, law and IT topics.
• Finance Minister Arun Jaitley presented the Union Budget for fiscal 2015-16 in the Lok Sabha.
Budget 2015
• A legendary budget catering to people belonging to all categories of society, with Insurance for poor at Rs. 12 premium as well as reduction of corporate tax.
The budget highlights the following key points:
1) Corporate tax rates will be reduced from 30% to 25% over the next 4 years. Service tax will increase from 12.36% to 14% and excise duty will increase slightly. Wealth tax will be abolished and a 2% surcharge will be added for high-income individuals.
2) Several deductions will be increased, including the health insurance deduction from Rs. 15,000 to Rs. 20,000 and the transport allowance exemption. Limits for health insurance premium deductions and senior citizen health expenses will also be raised.
3) Implementation of the Goods and Services Tax (GST) is targeted for April 2016.
PROVISIONS RELATING TO CO-OPERATIVE SOCIETIES IN MAHARASHTRARutuja Chudnaik
PROVISIONS RELATING TO CO-OPERATIVE SOCIETIES IN MAHARASHTRA, The Maharashtra Co-operative Societies Act, 1960 (MCS Act) and The Maharashtra Co-operative Societies Rules, 1961 are applicable to any co-operative society registered in Maharashtra and having no branches outside Maharashtra. If any state does not have its own State Act, the Co-operative Societies Act, 1912 and Rules become applicable. However, if a society has operations beyond one State, it is governed by a Central Act viz. the Multi-State Co-operative Societies Act, 2002 (MSCS) and its Rules.
The income earned by a co-operative society is subject to income tax under the Income-tax Act, 1961 and its Rules. It may be noted the income of a co-operative society is eligible for deduction u/s 80P of the Income-tax Act and not an exemption u/s 10. Hence, it is mandatory for all co-operative societies to file income tax return.
Co-operative societies are also governed by circulars, notifications and directives issued from time to time by the various departments of co-operation. A society is also bound by its bye-laws. It has also to follow various accounting and assurance standards issued by the Institute of Chartered Accountants of India.
As 22 final,AS 22 has become applicable to all listed companies with effect from 01/04/2001. The AS will also be applicable to all non-listed corporates with effect from 01/04/2002 and all other non-corporate entities with effect from 01/04/2003. Hence, now in financial statements two taxes will be accounted for (a) current income tax and (b) deferred income tax. AS 22 is a measurement standard meaning thereby that it involves accounting along with disclosure requirement in financial statements.
Trends and challenges of BOP of India,Balance Of Payments Position in India,Balance Of Payments – Introduction
Components Of A BOP Statement
Balance Of Payment in India
Bop Crisis In India
Developments In India’s Bop During April-June 2014
Measures of Correcting Balance of Payment
With help of two suitable example, Explain following concept under operating costing in case of a transporter (Hotel / Hospital)
Solution:-
1. Fixed Cost / Standing Cost, Variable Cost. Absolute tonne km, Commercial Tonne Km.Effective passenger km.
2. Decision making
3. Integral accounting system
4. Non - Integral Accounting System
Challenges and Perspective of Disaster ManagementRutuja Chudnaik
Challenges and Perspective of Disaster Management,Disaster- An Introduction,The cost and consequences of disasters, Development and natural disasters, Disaster Risk Reduction, Disaster Management Cycle, Disaster management in India, Natural Disaster – Droughts, Drought: causes and effects, Impact of drought: Indian scenario, Drought disaster challenges and mitigation in India, Drought assessment: tools and techniques, Drought management and challenges, Drought management framework in India, Conclusion.
The assessee claimed credit for TDS that was denied by the AO because the entries did not match Form 26AS. The CIT(A) said credit should be given to the extent shown in the department's system. The tribunal referred to court precedents that said credit must be given even without a TDS certificate, based on evidence. It directed the department to give credit based on original challans, system details, or evidence of TDS, even if the deductor did not issue a certificate. It also allowed the assessee's claim for interest on delayed payment of interest.
The Central Board of Direct Taxes (CBDT) issued a draft circular clarifying that no interest under section 234A of the Income Tax Act should be charged on self-assessment tax paid before the due date for filing a tax return. Previously, interest was charged on self-assessment tax even if paid before the due date. The CBDT reviewed this after the Supreme Court ruled that interest under section 234A should only apply to tax amounts unpaid before the due date. Therefore, the CBDT decided that no interest will be charged under section 234A on self-assessment tax paid before the due date for filing a return.
The document discusses the need for implementing GST in India. It outlines several issues with the current indirect tax structure, including a lack of input tax credits between central and state taxes, definitional issues, and different compliance mechanisms across states. Implementing GST would help rationalize these issues by introducing a single, comprehensive indirect tax on both goods and services with input tax credits. The document then discusses three models for implementing GST - Central GST, State GST, and Dual GST (concurrent or non-concurrent), concluding that a concurrent dual GST model seems most feasible given India's present tax structure.
Trends in Commercial Policies in an Emerging Economy - CHINARutuja Chudnaik
This document summarizes trends in China's commercial policies as an emerging economy. It outlines that China has become the world's largest trader and manufacturer, with exports and imports totaling over $4 trillion in 2013. It is dominated by manufactured goods, fuels, and agricultural imports. China remains highly dependent on foreign direct investment, mainly from Hong Kong, Taiwan, Japan, and South Korea. The Ministry of Commerce leads trade policy coordination across government. China has pursued trade liberalization through participating in the WTO, implementing free trade agreements, and establishing the China Shanghai Pilot Free Trade Zone to test further reforms.
This document discusses different costing techniques used in various industries and businesses. It provides examples of four costing techniques - marginal costing, standard costing, budgetary costing and how they help in decision making, cost control and cost reduction. Marginal costing helps management take short-term decisions and control variable costs. Standard costing enables cost control and performance evaluation by comparing actual and standard costs. Budgetary costing facilitates achieving organizational goals through periodic review of actual performance against budgets.
A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
These slides walk through the story of 1 Samuel. Samuel is the last judge of Israel. The people reject God and want a king. Saul is anointed as the first king, but he is not a good king. David, the shepherd boy is anointed and Saul is envious of him. David shows honor while Saul continues to self destruct.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Final mvat idt assignment
1. Page1
S.P. MANDALI’S
R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.
A PROJECT REPORT ON
Definitions u/s. 3, 4, 5, 6, 7, 8; and Penalty and Interest under
MVAT Act, 2002.
SUBMITTED BY
Rutuja Deepak Chudnaik
M.COM (SEM. IV): Indirect Taxes
SUBMITTED TO
UNIVERSITY OF MUMBAI
2015-2016
PROJECT GUIDE
Prof. Dr. (CA) Pradeep Kamthekar
2. Page2
S.P. MANDALI’S
R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.
CERTIFICATE
This is to certify that Mr/Ms. Rutuja Deepak Chudnaik of M.Com ( Business Management/
Accountancy) Semester IV (2015-2016) has successfully completed the project on Definitions
u/s. 3, 4, 5, 6, 7, 8; and Penalty and Interest under MVAT Act, 2002.
under the guidance of Prof. Dr. (CA) Pradeep Kamthekar
Project Guide/Internal Examiner External Examiner
Prof. _______________________ Prof.
________________________
Dr. (Mrs) Vinita Pimpale Dr.(Mrs) Shobana
Vasudevan
Course Co-ordinator Principal
Date Seal of the College
3. Page3
ACKNOWLEDGEMENT
I acknowledge the valuable assistance provided by S. P Mandali’s R. A. Podar
College of Commerce & Economics, for two year degree course in M.Com.
I specially thank the Principal Dr.(Mrs) Shobana Vasudevan for allowing us to
use the facilities such as Library, Computer Laboratory, internet etc.
I sincerely thank the M.Com Co-ordinator for guiding us in the right direction
to prepare the project.
I thank my guide Prof. Dr. (CA) Pradeep Kamthekar who has given his/her
valuable time, knowledge and guidance to complete the project successfully in
time.
My family and peers were great source of inspiration throughout my project,
their support is deeply acknowledged.
Signature of the Student
4. Page4
DECLARATION
I, Rutuja Deepak Chudnaik of R. A. PODAR COLLEGE OF
COMMERCE & ECONOMICS of M.Com SEMESTER I, hereby
declare that I have completed the project Definitions u/s. 3, 4, 5, 6, 7, 8; and
Penalty and Interest under MVAT Act, 2002. in the academic year 2015-
2016 for the subject Indirect Taxes.
The information submitted is true and original to the best of my
knowledge.
Signature of the Student
5. Page5
Index
VAT - INTRODUCTION:.............................................................................................................. 6
SCOPE OF VAT......................................................................................................................... 6
MVAT......................................................................................................................................... 7
REGISTRATION [Sec. 16, R 8]: ........................................................................................... 8
Incidence of Tax - Dealers liable to pay Tax: – [Sec. 3] .................................................... 8
Charging Provisions.............................................................................................................. 14
Levy of Tax Payable ......................................................................................................... 15
Tax Payable - Section 4 ................................................................................................ 15
Tax not leviable on certain goods in Maharashtra VAT................................................... 16
Tax not leviable on certain goods – section 5............................................................... 16
Levy of Sales Tax on the goods specified in the Schedules in Maharashtra VAT........... 16
Levy of Sales Tax on the goods specified in the Schedules – section 6....................... 16
Rate of tax on packing materials in Maharashtra VAT .................................................... 16
Rate of tax on packing materials – Section 7................................................................ 16
Schedules and Rate of Tax........................................................................................ 17
Certain sales and purchases not to be liable to tax in Maharashtra VAT ......................... 18
Sales transactions exempt from payment of tax under MVAT Act - Section 8 ........... 18
Business Audit, Recovery, Offence And Penalty Under MVAT: ........................................ 20
Objectives of Business Audit........................................................................................ 20
The Business Audit Process.......................................................................................... 20
Results of the audit........................................................................................................ 21
Time limit for audit.................................................................................................... 21
Investigation.................................................................................................................. 21
Recovery, Offences and Penalties:................................................................................. 21
Recovery of unpaid tax.............................................................................................. 21
Offences ........................................................................................................................ 22
Financial penalties or fines ........................................................................................ 23
Tax related................................................................................................................ 23
Non Tax Related Penalties..................................................................................... 24
Payment of Penalty or Fine....................................................................................... 24
Offences And Penalties..................................................................................................... 25
Conclusion ............................................................................................................................ 27
Biblography:.......................................................................................................................... 28
6. Page6
VAT - INTRODUCTION:
VAT is introduced in India. VAT Council of States, the body of State Finance Ministers
and Standing Council Of Commissioners have agreed that the VAT should be implemented
all over India From 1-4-2001. However, subsequently, after taking into consideration the
fact that the groundwork is still in progress, the date has been extended to 1-4-2002.One
thing is certain that the word ‘VAT’ [Value Added Tax] is a symbol of Globalization and
Liberalization, which is a universal phenomenon for the current age, is bond to be
implemented in India.
VAT (Value Added Tax) is a multistage tax system for collection of sales tax. The system
envisages levy of tax on the sale at each stage and contemplates allowing of set off of tax paid on
purchases. Thus, tax is getting paid on the value addition in the hands of each intermediately
vendor. The process covers whole chain of distribution i.e. from manufacturers till retailers.
Prior to 1-4-2005, the system for levy of tax in Maharashtra was, in general, single point tax
system. As a consequence to national consensus for introduction VAT, the earlier Bombay Sales
Tax Act, 1959 is replaced by Maharashtra Value Added Tax Act, 2002. The Act has come into
force with effect from 01/04/2005. Thus, from 1-4-2005, sales tax is being collected under VAT
system in Maharashtra.
SCOPE OF VAT
The purpose of VAT is to generate tax revenues to the government similar to the corporate
income tax or the personal income tax.
The value added to a product by or with a business is the sale price charged to its customer,
minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately
7. Page7
only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is
collected and remitted to the government only once, at the point of purchase by the end
consumer. With the VAT, collections, remittances to the government, and credits for taxes
already paid occur each time a business in the supply chain purchases products.
MVAT
The system of Value Added Tax (VAT) has been implemented, in the State of
Maharashtra, i.e. 1st April, 2005. As per the provisions of MVAT, a dealer is liable to
pay tax on the basis of turnover of sales within the State. The term dealer has been
defined u/s. 2(8) of the Act. It includes all person or persons who buys or sells goods in
the State whether for commission, remuneration or otherwise in the course of their
business or in connection with or incidental to or consequential to engagement in such
business. The term includes a Broker, Commission Agent, Auctioneer, Public Charitable
Trusts, Clubs, Association of Persons, Departments of Union Government and State
Government, Customs, Port Trusts, Railways, Insurance & Financial Corporations,
Transport Corporations, Local authorities, Shipping and Construction Companies, Airlines,
Advertising Agencies and also any corporation, company, body or authority, which is
owned, constituted or subject to administrative control of the Central Government, any
State Government or any local authority.
However an agriculturist, educational institution and transporters shall not be deemed to
be a dealer (subject to fulfillment of conditions).
8. Page8
REGISTRATION[Sec. 16, R 8]:
Incidence of Tax- Dealers liable to pay Tax: – [Sec. 3]
The dealers, holding a valid registration certificate under the earlier laws, whose turnover of
either of sales or purchases exceeds the specified limits during the financial year 2004-05, shall
be deemed to be registered dealer under MVAT Act and shall, therefore be liable to pay tax i.e.
1st April, 2005.
The dealers, holding a valid registration certificate under the earlier laws, whose turnover of
either of sales or purchases has not exceeded the specified limits during the financial year 2004-
05, but who have opted to continue their registration certificate (by applying to assessing officer
in specified format), shall also be deemed to be registered dealer under MVAT Act and shall,
therefore be liable to pay tax i.e. 1st April, 2005.New dealers, whose turnover of sales exceeds
the prescribed limits during any year, commencing on or after 1st April, 2005, are liable to pay
tax from the date on which such limit exceeds. A successor in business of any dealer shall
become liable to pay tax on and from the date of succession. A dealer, applying for voluntary
registration, shall be liable to pay tax from the date of registration.
Every dealer, who becomes liable to pay tax under the provisions of MVAT, shall apply
electronically for registration to the prescribed authority, in Form 101, within 30 days from the
date of such liability.
Section 3 of the Act provides for turnover limits for liability to pay tax as well as for registration.
The registration number, which used to be referred to as Registration Certification No. (R.C.No.)
has been changed to TIN (Tax Payers’ Identification Number) and hence the R.C.No. is now
referred to as VAT TIN (Tax Payers’ Identification Number). This change is effective from
1.4.2006. The limits for registration are as under.
9. Page9
Turnover limits for the purpose of Liability/Registration [Sec. 3(4)]
It may be noted that while the total turnover of Rs. 1,00,000/- and Rs. 5,00,000/- is in respect of
Turnover of Sales (which includes all sales whether tax free or taxable), the turnover limit of Rs.
10,000/- is in respect of taxable goods whether purchased or sold. Both the conditions have to be
satisfied for the purposes of liability/registration under this category. [Sec. 3(4)]
i. Reference of turnover of Rs.1,00,000 or Rs.5,00,000 is with respect to sales only. Sales will
include sales of both, tax-free goods as well as taxable goods.
ii. No turnover limit for import is specified for importer. Even an import of Re. 1 is sufficient
to treat the dealer as an importer.
Conditions For Registration
Steps
I Conditions:
Importer
(a) Taxable Sales/ Purchases at least Rs. 10000
(b) Sales Turnover exceeds Rs. 100000
Any Other Person
(a) Taxable Sales/ Purchases at least Rs. 10000
(b) Sales Turnover exceeds Rs. 1000000
II Compute Total/ Culmulative Turnover
1
2.
Compute Taxable Turnover
1.1. Local Purchases
2.2. Sales
Compute Tax-Free Sales Turnover (Sch. A)
Category of dealer Total turnover of sales Turnover of taxable goods purchased or sold
Importer Rs. 1,00,000 Rs. 10,000
Others Rs. 5,00,000 Rs. 10,000
10. Page10
3. Compute Total Sales Turnover (2.2 +2)
III Check Conditions Yes/No
(1)
(2)
(3)
Taxable Turnover (1.1 or 1.2 > 9,999?
Importer
Total Sales Turnover (3) > 100000?
Liable As Importer?
Not Liable, if Conditions (1) or (2) = NO
Liable. If both Conditions (1) or (2) = YES
Non-Importer
Total Sales Turnover (3) > 100000?
Liable As Non-Importer?
Not Liable, if Conditions (1) or (2) = NO
Liable. If both Conditions (1) or (2) = YES
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Documents required for the purposes of Registration
The Commissioner of Sales Tax, Maharashtra, has issued a circular dated 4th May, 2005,
whereby a dealer is required to submit following documents along with the application for
registration in Form 101: –
Documents to be submitted along with the application for registration:
(Note: Copies of documents must be self-attested and are subject to verification from the
original)
IN CASE OF FRESH REGISTRATION:
Proof of constitution of business (as appropriate):
I. In case of proprietary firm: No proof required.
11. Page11
ii. In case of partnership firm:
(Registered or unregistered)
Copy of partnership deed.
iii. In case of company: Copy of Memorandum of Association and Articles of Association.
iv. In case of other constitution: Copy of relevant documents.
Proof of permanent residential address* (please provide at least 2 documents out of the
following documents):
1. Copy of passport.
2. Copy of driving license.
3. Copy of election photo identity card.
4. Copy of property card or latest receipt of property tax of Municipal
Corporation/Council/Gram Panchayat as the case may be.
5. Copy of latest paid electricity bill in the name of the applicant.
Proof of place of business
1. In case of owner: Proof of ownership of premises; viz., copy of property card or
ownership deed or agreement with the builder or any other relevant documents.
2. In case of tenant/sub-tenant: Proof of tenancy/sub-tenancy like copy of tenancy
agreement or rent receipt or leave and license or consent letter, etc.
3. Copy of Electricity Bill
4. Two latest passport size photographs of the applicant **
5. Copy of Income Tax PAN Card
6. Challan in original showing payment of registration fee
REGISTRATION IN CASE OF CHANGE IN CONSTITUTION OF THE
DEALER:
12. Page12
1. Proof of change in constitution (e.g., if proprietary dealer converted to partnership
firm then copy of Partnership deed, etc.).
2. Copy of latest return-cum-challan.
3. Pay order for payment of fees.
4. PAN of new firm.
5. Proof of permanent residential address.
REGISTRATION IN CASE OF TRANSFER OF BUSINESS
1. All documents from 1 to 6 given in 'A'.
2. Copy of transfer deed.
3. Copy of latest return-cum-challan of the original dealer.
ILLUSTRATION 1 :
From the following information regarding the turnover of purchases and sales transactions
submitted by M/s Castalinos, who was not liable to be registered till 1st April, 2011, find out
whether he is liable for registration as per the provisions of MVAT Act, 2002, Give reasons
for your answer.
PURCHASES SALES
MONTH Taxable Goods Rs. Taxable Goods Rs. Tax Free Goods Rs.
April 1000 2000 200000
May 2500 3000 250000
June 3500 4000 300000
July 4500 5000 110000
Solution:
MONTH Purchases Sales Cum
Taxable
PurchaseTaxable Taxable Tax Total Cum. Cum
13. Page13
Goods Rs. Goods Rs. Free
Goods
Rs.
Sales
Rs.
Sales
Rs
Taxable
Sales Rs.
April 1000 2000 200000 202000 202000 2000 1000
May 2500 3000 250000 253000 455000 5000 3500
June 3500 4000 300000 304000 759000 9000 7000
July 4500 5000 110000 115000 874000 14000 11500
Since, Castalinos is not an importer, following limits are applicable:
(a) Total Turnover of sales exceeds Rs. 5,00,000.
(b) Taxable sales/purchases are of Rs. 10,000 or more. .
From the above working it is clear that Castalinos crosses the turnover limit of Rs. 5, 00,000 in
June, 2011, but his turnover of purchase as well as sales exceeded the limit of Rs. 10,000 only in
the month of July, 2011.
He will be liable to registration in July, 2011, when he fulfills both the conditions.
ILLUSTRATION 2:
The following information regarding the turnover of purchases and sales transactions is
submitted by Allen, who started Business on 1st March 2011. Find out whether as per the
provision of the MVAT Act 2002, it is liable for registration and payment.
PURCHASES SALES
Within State Outside State
MONTH Tax Free
Goods Rs.
Tax Free
Goods Rs.
Taxable
Goods Rs.
Tax Free
Goods Rs.
Taxable
Goods Rs.
March 30000 2000 3500 40000 3500
April 20000 3000 2500 10000 3000
May 40000 4000 4500 80000 1500
June 70000 5000 6500 50000 3000
July 25000 6000 3000 20000 3500
Solution
Given data is for two financial years 2009-10 and 2010-11. Hence limits will have to be
computed separately for both the years.
14. Page14
Month Purchases Sales
Cum
Taxable
Purchase
Rs.
Within
State
Outside State Tax Free
Goods
Rs.
Taxable
Goods
Rs.
Total
Sales
T/O
Rs.
Cum.
Total
T/O.
Sales
Rs
Cum
Taxable
Sales
Rs.
Tax Free
Goods
Rs.
Tax Free
Goods
Rs.
Taxable
Goods
Rs
2009-2010
March 30000 2000 3500 40000 3500 43500 43500 3500 3500
2010-2011
April 20000 3000 2500 10000 3000 13000 13000 3000 2500
May 70000 4000 4500 80000 1500 81500 94500 4500 7000
June 40000 5000 6500 50000 3000 53000 147500 7500 13500
July 25000 6000 3000 20000 3500 23500 171000 11000 16500
Allen is an Importer covered by the following turnover limits
i) Turnover of sales of in excess of Rs. 1,00,000 and
ii) Taxable sales/purchases of Rs. 10,000 or more
During the financial year 2010-11, Allen starts his business in the month of March, 2011, during
the year he has total turnover of sales of Rs 43,500 and also his turnover of taxable purchase as
well as sales is Rs. 3,500 each. He does not satisfy both the limits; hence he is not liable to
registration during the year 2010-11.
During the next financial year, 2011-12 it is clear from the information given, that Allen has
crossed the turnover limit of sales in the month of June 2011, when his sales is Rs. 1,47,500 and
his taxable Purchase turnover exceeds Rs, 10000 in June, 2011
Allen is liable for Registration in July 2011, that is the earliest date on which he fulfills both the
conditions.
Charging Provisions
Section 4, 5, 6 and 7 are charging Sections.
15. Page15
As per Section 5, no tax is to be levied on sale of goods covered by Schedule A.
Section 6 provides for levy of tax on turnover of goods covered by schedule B, C, D and E.
Section 7 specifies the rate of tax on packing material. Where any goods are sold and such
goods are packed in any material, then the tax on such sale of packing material shall be at the
same rate of tax, if any, at which tax payable on the goods is so packed, whether the packing
material is charged separately or not.
Levy of Tax Payable
Tax Payable - Section 4
Under MVAT Act, 2002, Sales Tax is payable on all sale of goods effected from the State,
whether such goods are manufactured or resold or imported from out of the State of Maharashtra
or purchased from registered or unregistered dealers in Maharashtra. Unlike Bombay Sales Tax
Act, there is no concept of ‘resale’ or ‘second sale’ under the MVAT Act, 2002.
Under MVAT Act, 2002, Purchase Tax is payable on purchases of specified goods from
Unregistered Dealers and the goods so purchased are Branch Transferred or sent to consignment
agent outside the State to any place within India or the goods so purchased are used in
manufacturing of taxfree or taxable goods and the goods so manufactured are branch transferred
or sent to consignment agent outside the State to any place within India.
Every Dealer or every person who is liable to pay tax under MVAT Act, shall pay the taxes
leviable under the Act, subject to the provisions of the Act and Rules. It can be said that the
liability to MVAT depends on the following factors:
Nature of Transaction
Location of sale
Nature of Goods
Dealer
Consideration
16. Page16
Tax not leviable on certain goods in Maharashtra VAT
Tax not leviable on certaingoods – section 5
Subject to the other provisions of this Act, and the conditions or exceptions, if any, set out
against each of the goods specified in column (3) of Schedule A, no tax shall be payable on the
sales of any goods specified in column (2) of that schedule
Levy of Sales Tax on the goods specified in the Schedules in Maharashtra
VAT
Levy of Sales Tax on the goods specified in the Schedules – section 6
There shall be levied a sales tax on the turnover of sales of goods specified in column (2) in the
schedules B, C, D or, as the case may be, E at the rates set out against each of them in column (3)
of the respective Schedule.
Section 6 provides for levy of sales tax on turnover of goods covered by Schedules B, C, D and
E.
Section 6A (w.e.f. Date to be notified) provides for levy of purchase tax on turnover of
purchases of cotton subject to conditions mentioned therein.
Section 6B (w.e.f. 1-5-2012) provides for levy of purchase tax on turnover of purchases of Oil
Seeds covered by Schedule C subject to conditions mentioned therein.
Rate of tax on packing materials in Maharashtra VAT
Rate of tax on packing materials – Section 7
Where any goods are sold and such goods are packed in any material, the tax shall be leviable
under section 6 on the sales of such packing material, whether such materials are separately
17. Page17
charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of the
goods so packed.
Schedules and Rate of Tax
All the goods are classified under Schedule A to E.
Schedule A covers goods, which are generally necessities of life. Goods covered by
Schedule A are free from tax. Some of the items covered by Schedule A are agricultural
implements, cattle feed, books, bread, fresh vegetables, milk, sugar, fabrics, plain water etc.
Schedule B covers jewellery, diamonds, precious stones and imitation jewellery. Goods
covered by Schedule B are subject to tax at 1%. (1.10% for the year 2013-14)
Goods covered by Schedule C are subject to tax 5%. With effect from 1st May, 2011
declared goods are also subject to tax @ 5%. Schedule C covers items of daily use or raw
material items like drugs, readymade garments, edible oil, utensils, iron and steel, non
ferrous metal, IT products, oil seeds, paper, ink, chemicals, sweetmeats, farsan, industrial
inputs, packing materials etc.
Schedule D covers different types of liquors. Wine is subject to tax @ 20%. With effect
from 1st May, 2011, other liquors are subject to tax @ 50%. It also covers various types of
motor spirits that are subject to tax from 4% to 34%.
All items which are not covered in any of the above Schedules are automatically covered in
residuary Schedule E. Goods covered by Schedule E are subject to tax at 12.5%
Rate Of Tax: [Secs. 5 & 6] As Per Schedules
Schedule ‘A’ – Essential Commodities (Tax free) Nil
Schedule ‘B’ – Gold, Silver, Precious Stones, Pearls etc. 1%
Schedule ‘C' – Declared Goods and other specified goods 4%
18. Page18
Other goods i.e. 1/5/10 5%
Schedule ‘D’ – Foreign Liquor, Country Liquor, Motor Spirits, etc. At specified rates
Schedule ‘E’ – All other goods (not covered by A to D) 12.5%
Certain sales and purchases not to be liable to tax in Maharashtra VAT
Sales transactions exempt from payment of tax under MVAT Act - Section 8
Following sales transactions are exempt from payment of tax under MVAT Act:
Interstate sale is exempt from payment of sales tax and it may be liable to tax under C.S.T
Act. [Section 8(1)]
Sales taking place outside the state as determined under Section 4 of the C.S.T Act. [Section
8(1)]
Sales in the course of import or export. [Section 8(1)]
Sales of fuels and lubricants to foreign aircrafts. [Section 8 (2)]
Inter-se sales between Special Economic Zones, developers of SEZ, 100% EOU, Software
Technology Parks and Electronic Hardware Technology Park Units subject to certain
conditions. [Section 8 (3)]
Sales to any class of dealers specified in the Import and Export Policy notified by the
Government of India [8(3A)]. This is subject to issue of notification by State Government
under this Section. However, no such notification is issued till today.
As per Section 8(3B), the State Government may, by general or special order, exempt fully or
partially sales to the Canteen Stores Department or the Indian Naval Canteen Services.
Under power granted u/s. 8(3C), the State Government, by general order, has exempted fully
the tax on works contract of processing of textiles covered in column 3 of the first schedule
19. Page19
to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. By amendment
in Additional Duties of Excise (Goods of Special Importance) Act, 1957 the textiles are
removed from above Act with effect from 8th April, 2011. However, corresponding change
is not made in the above notification under the MVAT Act. Therefore, operation of the above
exemption Notification after 8th April, 2011 is subject to renewal of this Notification as per
above amended position.
Sales effected by manufacturing units covered by Package Scheme of Incentives and under
exemption mode are exempt from payment of tax u/s. 8(4).
As per Section 8(5), the State Government may, by general or special order, exempt fully or
partially sales to specific category of dealers mentioned in this sub Section. By Notification
dated 19.4.2007 concessional rate of tax @ 5% (4% upto 30th April, 2011) is provided for
sale to specified Electric Power Generating and Distribution Companies, MTNL, BSNL,
other specified telephone service providers and telecom infrastructure providers.
One more notification dated 29th June, 2009 is issued by the State Government u/s. 8(5) by
which sale of certain specific goods for satellite launch system to the Department of Space,
Government of India is exempted from payment of tax with effect from 1st July, 2009.
The State Government may issue the notification to grant refund of any tax levied on and
collected from any class or classes of dealers or persons or as the case may be, charged on
the purchases or sales made by such class or classes of dealers or persons (Section 41). At
present this notification is issued for grant of refund in case of Consulate and Diplomat
authorities.
20. Page20
As per Section 41(4)(b) read with Notification dated 30.11.2008 issued under the said
section, the sale of motor spirit at retail outlets is exempted from tax, if the retail outlet
purchases the same from registered dealer.
Section 41(5) is introduced with effect from 1st May, 2011. As per this Section, the State
Government is empowered to provide exemption from the payment of full or part of the taxes
payable on any class or classes of sales of liquors by any class or classes of dealers. Using
the powers granted u/s. 41(5), the State Government has issued a notification, which is
discussed subsequently.
Business Audit, Recovery, Offence And Penalty Under MVAT:
Business Audit is a new function of the Sales Tax Department. This will be conducted
by the Sales tax officials ordinarily at the dealer's place of business. This audit is
independent from the audit by a Chartered Accountant. Business Audit is however, not
an activity of enforcement for search and seizure at dealers' business premises.
Objectives of Business Audit
The objective of a Business audit is to close any possible gap between the tax declared
by' a dealer and the tax legally due. It aims to ensure optimum revenue collection and
voluntary compliance. The aim of Business audit is to encourage the highest possible
level of voluntary compliance in a system of self-assessment.
The Business Audit Process
If any of the dealers business is selected for an audit, then Sales Tax Office will inform
them and then fix a suitable date.
The audit officer will inspect the books of accounts and supporting documents. At that
time dealer should make available any information or documents that he may require to
21. Page21
enable him to carry out the audit effectively and speedily. The audit officer may like to
understand dealer’s business process and examine their stocks of goods. He may also
like to interview the person or its employees for this.
The audit officer cannot remove any books of accounts or documents from their
premises. However, audit officer can request for copies.
Results of the audit
If the audit shows that the returns filed do not reflect the true picture of the dealers
business, then the auditor may discuss the matter with the dealer and will give guidance
to them to prevent recurrence and will also explain them about what action should be
followed. The audit may result in additional tax demand or a refund.
Time limit for audit
There is no time limit prescribed for conducting Business Audit. Normally, they may
carry out an audit within two years of filing the return. They may follow the timelines
as prescribed for completion of assessments under the MVAT Act and MVAT Rules.
Investigation
Normally, the Sales Tax Department will make Business Audit visits by appointment.
However, if the department suspects any tax evasion, it may conduct investigation of the
business including search and seizure operations at any time without giving notice. Such
investigation will be carried out by a duly authorized investigation officer (not audit
officer).
Recovery, Offences and Penalties:
Recovery of unpaid tax
22. Page22
VAT is a self-assessed tax. In order to operate effectively, the self-assessment system
relies on the expectation that every dealer will deal with his tax matters promptly and
honestly. But there will be occasions when a dealer does not pay the tax that is due.
And so, there is a system designed to recover unpaid tax and to deter dealers from
trying to avoid paying tax.
The self-assessment return requires the dealer to pay the tax due at the time of
submission of the return. If this dealer does not pay the tax that he has declared, or if
only pays a part of the tax due, interest is payable in addition to the tax due.
Offences
The principal offences, each of which has been referred to in the text of this guide, are
as follows: -
If a person -
poses as a registered dealer when they not registered.
files a false return.
keeps false account of the value of goods bought or sold.
produces false accounts, registers or documents or provides false information.
issues any document (including bills, cash memoranda, vouchers or any other
certificate or declaration) which the dealer knows or has reason to believe is
false.
He may be liable for criminal proceedings including imposition of fine.
In addition, dealer is committing an offence and if he fails to -
register when his turnover exceeds the, threshold.
23. Page23
provides information about changes to his business.
declares the name of the manager.
provides to Sales Tax Department the PAN allotted to the business.
files a return.
get his accounts audited, when required.
keeps proper accounts, when required to do so by the Sales Tax authorities
because the existing records are inadequate.
produce his accounts for inspection, when required
issues a tax invoice, bill or cash memorandum.
In these circumstances, the dealer may be prosecuted and a fine may also be imposed.
There are two other events that may also give rise to a penalty. If the dealer:
transfers any assets of his business with the intention of not paying tax, or
fails to respond to a notice requiring him to provide statistical information.
Dealer will be liable to a fine and may also face prosecution.
Financial penalties or fines
There are various financial penalties, each depending on the nature of the offence:
Tax related
Some offences attract a maximum penalty in proportion to the amount of tax due.
If the dealer: -
conceals or misclassifies any transaction or provides inaccurate information or
claims a set off in excess of the amount due or,
24. Page24
issues or produces a documents, including tax invoice, bill or cash memorandum,
that results in a person or dealer not paying the correct amount of tax
The penalty is an amount equal to the tax due. If the dealer avoids paying the correct
amount of tax as a result of issuing bogus, false tax invoices, the maximum penalty is
an amount equal to half of the tax under assessed or Rs.100/-, whichever is higher.
Non Tax Related Penalties
If the dealer fails to file a return, within the time allowed, the penalty is Rs.2,000/-. If
dealer files the return late but before any penalty proceedings have started, the penalty
will be reduced to Rs1,000/-.
If the dealer’s return is not correct, complete and self-consistent, the penalty is Rs1,000/,
but this is without prejudice to any other penalties that may be imposed.
If, after the issue of summons, the dealer fails to attend any proceedings or to produce
books of account, registers or documents, the Tribunal or the Sales Tax authorities may
impose a fine, not exceeding Rs.5,000/-.
Most other offences attract a penalty of Rs.1,000/- although there is also a provision for
some offences to attract a penalty of Rs.2,000/- plus a continuing daily penalty of
Rs.100/-
Payment of Penalty or Fine
As a result of proceedings, such as audit, investigation, assessment etc., Sales Tax
Authority may issue a demand notice containing details of tax, interest and penalties, if
any, that are imposed. The dealer should pay the amount due within 30 days of the date
of the order. Dealer should make the payment using Form 210 through the bank where
he normally files his return.
25. Page25
Offences And Penalties
The penalties under MVAT Act, 2002 are prescribed in section 74, which are as follows:
Section 74(1)(a)
Rigorous imprisonment for minimum one month and maximum one year and with fine for
following offences:—
1. If a dealer represents himself as a Registered Dealer at the time of sale or
purchase
74(1)(a)
2. If he filed false returns 74(1)(b)
3. If he produces a false bill, cash memorandum, voucher, declaration,
certificate or other document referred to in sub-section (29)(4)
74(1)(c)
4. If he produces false accounts of the value of goods bought or sold by him in
contravention of section (63)(1)
74(1)(d)
5. If he produces false accounts registers or documents or knowingly furnishes
false information, or
74(1)(e)
6. If a dealer issues to any person any false certificate, declaration under the
Act, rules or notifications or a Bill, cash memorandum, voucher, delivery
challan, lorry receipt or other documents which he knows or has reason to
believe to be false.
74(1)(f)
7. If a dealer represents him wrongly that he is authorised under section 82
appears before any authority in any proceeding
74(1)(g)
Section 74(1A)
Rigorous imprisonment for minimum of one year and maximum up to two years and with
fine for the following offences:—
1. Knowingly with the intention to defraud revenue, issues or produces a false
Tax Invoice and thereby makes a false claim in respect of the set off or the
refund, or claims any other deduction that results into reduced tax liability or
enhanced refund
74(1A)
26. Page26
2. Abets any of the aforesaid offences 74(1A)
Section 74(2)
Rigorous imprisonment for minimum of three months and maximum up to one year and with
fine for the following offences:—
1. If the dealer wilfully evading tax or payments of tax, penalty and interest
leviable under this Act
74(2)
Section 74(3)
Simple imprisonment, which may extend to six months and with fine for the following offences,
if the dealer:—
1. Fails, without sufficient cause to comply with the requirements of sub-
section (14)(3)
74(3)(a)
2. Engaged in business as dealer without being registered under Section 16, or 74(3)(b)
3. Failure to get the new registration certificates in lieu of existing certificate,
when required to do so, as per the provision of section (17)(1)
74(3)(c)
4. Fails without sufficient cause, in furnishing any information as required by
section 18
74(3)(d)
5. Fails without sufficient cause, to furnish a declaration/revised as provided
in section (19)(1)
74(3)(e)
6. Fails, without sufficient cause, to furnish any return or complete and self-
consistent return by section 20 by date and in the manner prescribed, or
74(3)(f)
7. Fails, without sufficient cause, in paying TDS by the employer, in
deducting TDS or to file TDS Return as required under the provision of
section 31, or
74(3)(g)
8. Fails, without sufficient cause, to comply with the requirements of section
(33)(1) or
74(3)(h)
9. Fails, without sufficient cause, to comply with the requirements of any 74(3)(i)
27. Page27
order issued under the section (35)(1),or
10. Fails, without sufficient cause, to comply with the requirements of any
order issued under Section (38)(3)
74(3)(j)
11. Fails, without sufficient cause, to comply with the requirements of section
42
74(3)(k)
12. Without reasonable cause, contravenes any of the provisions of section 60,
or
74(3)(l)
13. Fails, without sufficient cause to get his accounts audited or furnish the
audit report, as required under section 61,or
74(3)(m)
14. Fails, without sufficient cause, to comply with the requirements of section
63, or
74(3)(n)
15. Fails, without sufficient cause, to comply with the requirements of section
64
74(3)(o)
16. Fails, without sufficient cause, to comply with the requirements of section
65, or
74(3)(p)
17. Fails, without sufficient cause, to furnish any information or return required
by section 70 as prescribed manner, or
74(3)(q)
18. Fails, without sufficient cause, to issue a tax invoice, bill or cash
memorandum as required under section 86
74(3)(r)
19. Fails, without reasonable cause, any of the conditions, subject to which the
Certificate of Entitlement is granted, or
74(3)(s)
20. Fails, without sufficient cause, to comply with any notice in respect of any
proceedings
74(3)(t)
Conclusion
VAT, a globally recognized sales tax system, has been introduced in more than 130 countries
VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax
Act (MVAT Act), 2002, supported by Maharashtra Value Added Tax Rules (MVAT Rules).
VAT is levied on sale of goods including intangible goods.