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Mvat liability

09 January 2017

Hello everyone,

If I get voluntarily registered under MVAT act is it necessary to collect VAT even if my turnover does not exceed Rs. 10 lacs or i should collect only after crossing the limit of 10 lacs

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 10 January 2017

Only after crossing the threshold limit.

CA Karan Sathe (CA ) (564 Points)
Replied 10 January 2017

Thank You Sir.

CA Karan Sathe (CA ) (564 Points)
Replied 10 January 2017

i just check section 3(9). and as per this section dealer has to pay tax if he get voluntary registered under mvat even his turnover below Rs. 10 lacs

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 10 January 2017

It reads:: Dealers liable to pay Tax: – [Sec. 3]:: : "A dealer, applying for voluntary registration, shall be liable to pay tax from the date of registration."

Interpreat it as :::: But from the moment its liability arises.

Also read:

The proviso u/s. 3(2) provides that the dealer shall not be liable to pay tax in respect of such sales as take place during the period commencing on the first day of April of the financial year till his turnover of sales does not exceed the relevant limit applicable to him under subsection (4). The expression ‘does not exceed’ indicates that the dealer is able to claim the exemption till the point, he does not cross the prescribed limit.

CA Karan Sathe (CA ) (564 Points)
Replied 11 January 2017

But sub section (9) provide that Any person who is not liable to pay tax under the foregoing,provisions of this section but has been voluntarily registered under the provisions of this Act shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 11 January 2017

Originally posted by : Karan Sathe
	But sub section (9) provide that Any person who is not liable to pay tax under the foregoing,provisions of this section but has been voluntarily registered under the provisions of this Act shall be liable to pay tax from the date of effect of the certificate of registration duly granted to him and accordingly nothing contained in the proviso to sub-section (2) shall apply to him in any year