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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.