MVAT

MAHARASHTRAVALUEADDED
TAX

MVAT
VAT (Value Added Tax) is a multistage tax system for collection of sales tax (The process
covers whole chain of distribution i.e. from manufacturers till retailers)
From 1-4-2005, sales tax is being collected under VAT system in Maharashtra
By and large the scheme of levy of tax on sales of good is value added tax
MVAT is to levy tax on all kind of sales of goods

INTRODUCTION OF MVATACT, 2002

The Maharashtra Value Added Tax 2002 (Herein after called as MVATAct)
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

LEVYOF TAX
When Manufactured goods are first sold

Goods imported from out of India or out of Maharashtra State are sold
Goods purchased from Unregistered Dealer s (URD) or Registered Dealers (RD)
are sold in the same form

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

DEFINITION
Dealer - Sec. 2(8) Sale - Sec. 2(24)
Sale Price - Sec. 2(29)
Goods - Sec. 2(12)

DEALER - SEC. 2(8)

Dealer includes any person who buys or sells goods in the
state
For commission, remuneration or otherwise. It also includes, among others, by an
Explanation, public charitable trust government departments, societies, State Government,
Central Government, shipping companies, airlines, advertising agencies etc

SALE - SEC. 2(24)

Means a sale of goods made within the State for cash or deferred payment or other
valuable consideration but does not include a mortgage, hypothecation (car loans),
charge or pledge(Gold loans)
A sale within the State includes a sale determined to be inside the State in
accordance with the principles formulated in Section 4 of the Central Sales Tax Act,
1956

FOLLOWING TYPES OF TRANSACTIONSARE

ALSO INCLUDED IN DEFINITION OF SALE
The transfer of property in any goods

The transfer of property in goods involved in the execution of a works contract including
an agreement for carrying out for cash, deferred payment or other valuable consideration, the
building, construction, manufacture, processing, fabrication, improvement, modification,
repair or commissioning of any movable or immovable property
A delivery of goods on hire-purchase or any system of payment by installments

FOLLOWING TYPES OF TRANSACTIONS ARE

ALSO INCLUDED IN DEFINITION OF SALE
The transfer of the right to use any goods or any purpose for cash, deferred payment or
other valuable consideration
The supply of goods by any association or body of persons incorporated or not
The supply, by way of or as part of any service or in any other manner whatsoever, of
goods, being food or any other article for human consumption or any drink where such supply
or service is made or given for cash, deferred payment or other valuable consideration

SALE PRICE - SEC. 2(25)

Sale price is defined to mean an amount received/ receivable forany sale
including any sum
Charged by seller in respect of the goods at the time of or before delivery thereof
The amount of duties levied or leviable on goods under the Central Excise Act, 1944 or
the Customs Act, 1962 or the Bombay Prohibition Act, 1949, shall be deemed to be part of
the sale price of such goods, whether such duties are paid or payable by or on behalf of,
the seller or the purchaser or any other person

GOODS - SEC. 2(12)

Means every kind of movable property (means import/export
license, patents, trade mark, electricity etc.)
The definition specifically includes
live stocks, growing crop, grass and tree, plants including produce thereof
under given circumstances
However, it excludes newspapers, money, stocks, shares, securities or
lottery tickets

PROCEDURE FOR REGISTRATION

2.
1
.

D ERS LIABLE TO PAYTAX (SEC 3)

E
A
L

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

T
h
e
d

ealers 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

3. New dealers whose turnover of sales exceeds the prescribed limits during
any year, commencing on or after 1st April 2005
4
.

5
.
A
s

uccessor in business of any dealer shall become liable to pay tax on and
from the date of succession

A dealer applying for voluntary registration

. 6. The Maharashtra Tax Laws( levy, Amendment and

Validation) Act, 2012, provides for liability to pay tax
of certain dealers on the basis of turnover of purchases

(of specified good sin newly inserted sections 6A and

6B )

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

DOCUMENTS
REQUIRED FOR THE
PURPOSE OF
REGISTRATION
A.

INCASEOFFRESH
REGISTRATION

1. PROOFOFCONSTITUTIONOFBUSINESS(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.

2. PROOFOFPERMANENTRESIDENTIAL
ADDRESS

Copy
of
passp
ort
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 maybe
Copy of latest paid electricity bill in the name
of the applicant

3. PROOFOFPLACE
OFBUSINESS
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.

C
o
p
y
o
f

e
l
e
c
t
r
i
c
i
t
y
b
i
l
l

4. PROOFOFBANK
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

FEES PAYABLE
Voluntary Registration: RS 5,000/ Others: RS 500/- only ( payment of fees of RS 500 wherever applicable may be paid
through court fee stamps also )
Deposit of Rs. 25,000, as the case may be for Vat TIN and Rs.25/-forC.S.T.TIN.
Payment is to be made in chalan No. 210

REGISTRATION IN CASE OF CHANGE IN

CONSTITUTION OF THE DEALER
Proof of change in constitution (e.g. if proprietary concern converted to partnership
firm then copy of Partnership deed etc.)
Copy of latest return-cum-chalan
Registration fee as per 6 given in A
PAN of new firm
Proof of permanent residential address as specified at Sr. No.2

REGISTRATION IN CASE OF TRANSFER OF

BUSINESS
All documents from 1 to 6 given in A(Registration)
Copy of transfer deed
Copy of latest return-cum-chalan of the original dealer

SCHEDULE

GOODS

RATES

Schedule A

Essential Commodities
(Tax free)

NIL

Schedule B

Gold, Silver, Precious

Stones, Pearls etc

1%

Schedule C

Declared Goods and other

4%
specified goods other goods
w.e.f. 1-5-2005

Schedule D

Foreign Liquor, Country

Liquor, Motor Spirits, etc.

5% At specified rates
(4%to34%
)

Schedule E

All other goods (not

covered by A to D)

12.5%

RATES OFTAXES

TURNOVER LIMITS FOR THE PURPOSE OF

CATEGORYOF
DEALE
R

TOTAL
TURNOVEROF
SALES

TURNOVER
OF
TAXABLEGOODS
NOT LESSTHAN

IMPORTER

OTHERS(Including
manufacturer,
reseller,
builder etc.)

RS. 1,00,000

RS.10,000

NOT LESSTHAN
RS.5,00,000

RS.10,000

LIABILITY/ REGISTRATION [SEC.3(4)]

PERIODICITYOF RETURN
Sr. No.

Annual tax liability or refund In Periodicity of returns Due Date

previous years in Rs.

Retailers who has opted to pay tax

by way of composition

Six Monthly

21st of Next Month

Up to 36000

Six Monthly

21st of Next Month

>36000< or equal to 100000

Quarterly

21st of Next Month

>100000

Monthly

21st of Next Month

First Year

Quarterly

21st of Next Month