Transcript INTRODUCTION OF MVAT ACT, 2002

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REGISTRATION UNDER MVAT
ACT, 2002.
Add : 3, Shri Swami Arcade, Near Somani
Hospital, Jatharpeth, Akola.
CA BHARAT S VYAS
Contact : +91-9422939945
Email : [email protected]
INTRODUCTION OF MVAT ACT,
2002

The Maharashtra Value Added Tax 2002 (Herein after
called as MVAT Act) has replaced the Bombay Sales Tax
Act, 1959 on & w. e. f. 1st April 2005 and now the sales
tax is collected by the Maharashtra Government under
MVAT Act, 2002. Up to 31st March 2005 the sales tax was
collected under the Bombay sales Tax Act, 1959
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INCIDENCE AND LEVY OF MVAT

As per the provisions of MAHARASHTRA VALUE ADDED
TAX ACT, 2002 (MVAT), a dealer is liable to pay tax on the
basis of turnover of sales within the state.
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DEALERS LIABLE TO PAY TAX (SEC 3)
1.
2.
The dealers holding a valid registration certificate under
the earlier laws, whose turnover of either sales or
purchase exceeds the specified limits during the F.Y
2004-05.
The dealers holding a valid registration certificate under
the earlier laws, whose turnover of either sales or
purchases has not exceeded the specified limits during
the F.Y 2004-05, but who have opted to continue their
registration certificate.
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DEALERS LIABLE TO PAY TAX (Sec 3)
3.
4.
5.
New dealers whose turnover of sales exceeds the
prescribed limits during any year, commencing on or
after 1st April 2005.
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.
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DEALERS LIABLE TO PAY TAX:- (SEC.3)
6.
The Maharashtra Tax Laws( levy, Amendment and
Validation) Act, 2012, provides for liability of certain
dealers to pay tax on the basis of turnover of purchases
(of specified good sin newly inserted sections 6A and
6B).
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Why to obtain Registration Certificate?

Obtaining of registration certificate is statutory obligation
of every dealer, who is liable to pay tax under the Act.

It empowers the dealer to collect tax.

A registered dealer gets the benefits of set off (input tax
credit)

Business without registration invites penalty/prosecution.
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Who should apply for the Registration?


The dealer who attains or crosses prescribed turnover of
purchase or sale should apply for registration under VAT
Act within 30 days from the date on which turnover
crossed the prescribed limit.
Once a dealer exceeds the prescribed turnover and fulfils
the conditions as mentioned in table below, then the
liability to pay taxes under the Act commences from the
time of transaction by which the turnover exceeds the
prescribed limit.
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What happens if not applied in time for
registration?


When a dealer does not apply within 30/ 60 days from the
date of exceeding the prescribed turnover of purchases or
sales than certificate of registration will be issued with
effect from the date of uploading of the application.
Therefore, from the date of starting of business till the date
of uploading of the application, the dealer will be treated
as unregistered.
Penalty for un-registered dealers: If dealer does not apply
in time and remains unregistered, it is an offence under
the Act.
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REGISTRATION [ SEC.16, R 8 ]

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.
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TIME LIIMIT TO APPLY FOR
REGISTRATION
TYPES OF REGISTRATION
TIME LIMIT
1. Exceeding prescribed turnover limit
Within 30 days from date of exceeding
turnover.
2. Change in constitution
Within 30 days of such change.
3. Transfer of Business
Within 30 days of such transfer.
4. Transfer of Business by way of
succession in case of death
Within 60 days of such incidence.
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TURNOVER LIMITS FOR THE PURPOSE OF
LIABILITY/ REGISTRATION [SEC.3(4) ]
CATEGORY OF DEALER
TURNOVER (w.e.f.
01/05/2012)
IMPORTER
RS. 1,00,000
OTHERS
RS. 10,00,000
(w..e.f. 26/06/2014)
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TURNOVER OF TAXABLE
GOODS PURCHASED OR
SOLD
RS. 10,000
RS. 10,000
TURNOVER FOR THE ABOVE PURPOSE

Section 3(5) - Following items specifically covered for
registration limits:
Turnover of all items, whether taxable or tax free is to be
considered.
 To include turnover on own account as well as on
accounts of principal, whether disclosed or not.
 In case of auctioneer turnover should include turnover of
goods, price of which is received by him.
 In case of agent of non-resident dealer, sales of such non
resident dealer.

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DOCUMENTS REQUIRED FOR THE
PURPOSE OF REGISTRATION
A.
1.




IN CASE OF FRESH REGISTRATION
PROOF
OF
CONSTITUTION
OF
BUSINESS(AS
APPROPRIATE)
In case of proprietary firm: no proof required
In case of partnership firm: copy of partnership deed
In case of company: copy of Memorandum of Association
and Articles of Association
In case of other constitution: copy of relevant documents
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DOCUMENTS REQUIRED FOR THE PURPOSE
OF REGISTRATION
2. PROOF OF PERMANENT RESIDENTIAL ADDRESS
(Any two of the below)

Copy of passport

Copy of driving license

Copy of election photo identity card

Copy of property card or latest receipt of property tax of
municipal corporation/council/gram panchayat as the case
may be

Copy of latest paid electricity bill in the name of the
applicant
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DOCUMENTS REQUIRED FOR THE
PURPOSE OF REGISTRATION
3. PROOF OF PLACE OF BUSINESS

IN CASE OF OWNER : proof of ownership of premises viz;
copy of property card or ownership deed or agreement
with builder or any other relevant documents.

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.

Copy of electricity bill.
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DOCUMENTS REQUIRED FOR THE
PURPOSE OF REGISTRATION
4. PROOF OF BANK ACCOUNT

A leaf of cancelled cheque of the current bank account in
the name of the business ( trade name )
5. Two latest passport size photographs of the applicant
6. Copy of Income Tax Pan Card
7. Challan in original showing payment of registration fee.
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FEES PAYABLE



VOLUNTARY REGISTRATION: ₹ 5,000/- with a refundable
interest free deposit of ₹ 25,000/- along with challan in
Form 210.
OTHERS: ₹ 500/- only (payment of fees of ₹ 500 wherever
applicable may be paid through court fee stamps also).
DD / PO of nationalized bank for all the above fees &
deposit to be made in favor of “Bank of Maharashtra
A/C MVAT” payable at Mumbai for Mumbai Jurisdiction
and “State Bank of India, A/C MVAT” payable at respective
jurisdiction.
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Advantages & Disadvantages
Advantages of Registration
Disadvantages of Non Registration
1. He can claim set off of tax paid on the
purchase if eligible to get any.
1. He cannot claim any set off or refund
of the tax paid by him
2. He can issue various declarations
prescribed C.S.T. Acts like Form C etc.
2. Purchases at concessional rate of tax
not available to him. He cannot issue forms
or declarations like Form C etc.
3. Registered dealer is liable to pay tax
on the sales effected by him however he
can collect tax from buyer.
3. Unregistered dealer is liable to pay tax
on the sales effected by him but he can
not collect tax from buyer.
4. Registered dealers are preferred while
awarding the government contracts.
4. Possibilities of non consideration for
awarding the government contracts.
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CANCELLATION OF REGISTRATION


The Registered Dealer shall apply for cancellation of
registration in form 103, within prescribed time where the
Business is transferred/discontinued/disposed off.
The Registered Dealer may apply for cancellation of
registration if during any year his turnover has not
exceeded the relevant limit as specified in section 3(4).
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THANK YOU!!
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