MVAT – Highlights on Budget 2016-2017

MVAT : Maharashtra Value Added Tax:   Highlights are as follows: Exemption from Levy of Sugarcane Purchase Tax for the year 2015-16 to the Sugar Factories which export sugar as per Government policy. Amnesty scheme for Profession Tax enrolment holder. Tax liability and penalty will be restricted to previous three years. Amnesty for tax administered…

Annexures J1 & J2 along with MVAT returns to be submitted – applicable from April 2014

As per Trade Circular No. 9T of 2014, dated 25 March 2014, Maharashtra Sales Tax department has stated that every dealer required to file returns should file information pertaining to dealer-wise sales in Annexure J1  and dealer-wise purchases in Annexure J2, before filing the returns.

The existing process involves annually filing Annexures J1 and J2, the corresponding details in which are then electronically matched by the Sales Tax department at a later stage. This system has created immense pressure on the suppliers and customers to procure ledger confirmations and other documentary evidences to the satisfaction of the department, when their respective cases come up for VAT assessments after a few years and the department points out a mismatch.

In consideration of the many representations, the department has now decided to implement the process for the periodic filing of Annexures J1 and J2. The new procedure is aimed at helping dealers resolve their purchase and sale mismatch, and take corrective action before the year end. The gist of the circular is as below:

MVAT Composition Scheme for Retailers effective from 1st Oct 2014

Maharashtra Government has made changes in composition scheme through notification dated 21st August which will be made applicable from 1st October 2014. This scheme is beneficial for the dealers who finds difficult to maintain books of accounts for e. g. Grocery Shopkeepers, etc. However there are some conditions of the scheme also. –

NEW SCHEME:
Sales department has simplified the new composition scheme, in this tax payer has to pay 1% on the total turnover of sales including tax free goods or 1.5% on the sales of taxable goods. That means one has to choose option from 1% or 1.5% of VAT rate. E.g. In first option, 1% rate is selected and if the total turnover is 30 lakhs which includes taxable goods of Rs. 25 lakhs and tax free goods of Rs. 5 lakhs, then he has to pay VAT @ 1% on total sales of 30 lakhs i.e. Rs. 30,000. If he chooses 2nd option then he has to pay VAT @ rate 1.5% on taxable sales of 25 lakhs i.e. Rs. 37,500. It means it is beneficial to record Tax free and Taxable goods different or pay 1% VAT and get relaxation from maintaining books.

Highlights of Maharashra State Budget 2011-12

Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified.  Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%.

Highlights of Maharashra State Budget 2011-12

Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified.  Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%.

MVAT Act 2002 Important Rules & Provisions

MAHARASHTRA VALUE ADDED TAX ACT, 2002 (Updated for FY 2009-10)

INTRODUCTION

WHAT IS VALUE ADDED TAX (VAT) ?

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 intermediatory 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 1-4-2005. Thus, from 1-4-2005, sales tax is being collected under VAT system in Maharashtra. Salient features of this Act are mentioned hereunder: