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MATUSHRI PUSHPABEN VINUBHAI VALIA COLLEGE
OF COMMERCE
(AFFILIATED TO UNIVERSITY OF MUMBAI)
BORIVALI EDUCATION SOCIETY (BORIVALI)
INDIRECT TAXES
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PRESENT TIONON
FY.BAFNAME : RIKESH CHAURASIA
ROLL NO. : 807 (A)
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MAHARASHTRA VALUEADDED TAX ACT 2002
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DEFINITION MVAT stands for Maharashtra Value Added Tax
MVAT was started w.e.f. 1stApril, 2005
Modification in said Act of 2002.
Based on the principal of VAT
Is a form of sales tax
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DEFINITIONS
Goods
Sale price
Turnover of sales
Manufacturers
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GOODS
Goods[section 2(12)]Any kind of moveable property
Important conceptMoveable property means which is not immovable.
Example:1. MVAT is applicable on the sale Motor Car.
2. MVAT is not applicable on the sale Land.
3. MVAT is not applicable on the money.
4. MVAT is applicable on the sale computer.
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SALES PRICE
Sales price[section 2(25)]an amount received/ receivable for any sale including any sum charged by seller in
respect of the goods at the time of or before delivery.
Sales tax, if any, charged separately shall not form a part of sale price.
Illustration:i. Cost of 200@ `10 is ` 2000.
ii. Excise duty is Rs.200
iii. Packing & Forwarding is Rs. 100.
Solution: Cost of 200@ Rs. 10 is 2000Excise duty is Rs.200 200Packing Forwarding is Rs. 100 100
Total 2300
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TURNOVER OF SALES
Turnover of sales[section 2(33)]the aggregate of the amount of sales price receive & receivable by
the dealer.
The prescribed period to return goods is six month.
For Example:Total sales during the month of July 2006 Rs.1,10,000
Less: Sales return out of sales made in themonths of April 2006 Rs. 10,000
Total Rs.1,00,000
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MANUFACTURERS
Manufacturer[section 2(15)]Manufacturing means producing, making , extracting , ornamenting ,
finishing.
It includes processing, treating, or adapting of any goods.Examples:1) Cutting and Polishing of marbles is not a manufacturing.
2) Assembly of Scooter from various parts is a manufacturing.
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DEALER
Dealer[section 2(8)]any person who buys or sales of the goods in the state for
valuable consideration.
It includes broker, commission agent, mercantile agent.
Examples:1) Chartered Accountants is not an Dealer.
2) Sale of Confiscated rickshaw by ICICI Bank.
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TYPES OF DEALER
Dealer is divided into two types:
IMPORTER OTHERS
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IMPORTER
Importer[section 2(13)]bring any good into the state or to whom any goods dispatch
from any place outside the state.
Example:Mr. A of Mumbai purchased goods Mr. B of Bangalore. Here Mr. A
is an importer.
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CONDITIONS TO REGISTER AS AN IMPORTER
The following conditions are to be fulfill by the dealer in order to
register himself as an importer.
1) The Value of Taxable sales or Taxable Purchase should be at leastRs. Ten Thousand 10,000).
2) The Value of Turnover of Sales should be at least should be at least
Rs. One Lac 1,00,000).
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EXAMPLE
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OTHERS
The following conditions are to be fulfill by the dealer in order to
register himself as an other:
1) The Value of Taxable sales or Taxable Purchase should be at leastRs. Ten Thousand 10,000).
2) The Value of Turnover of Sales should be at least should be at least
Rs. Five Lac 1,00,000).
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EXAMPLE
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SET OFF
It means to take the credit of MVAT paid on purchase of
materials.
Any MVAT pay on purchase of raw material shall be allowed
SET OFF.
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RATES OF VAT
A
0% Vegetables, eggs, milk other essential items
B 1% Precious Metals, Precious Stones and their Jewellary
C 4% Raw Materials, Notified Industrial products, IT products
D 20% & above Liquor, petrol & diesel
E 12.5% All remaining items
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EXAMPLE
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THANK YOU.