Mvat registration
This query is : Resolved
19 October 2011
Dear Colleagues,
Mr. A has commenced new business. He purchased goods worth Rs. 6 lacs & sold these goods on the same day for Rs. 7 lacs, therefore he would be liable for registration under MVAT Act.
1. In this case on what amount he would be liable to pay MVAT?
2. Can he pay tax only on the difference amount of Rs. 2 lacs-(i.e.Rs.7 Lacs –Rs. 5 Lacs) or he would be liable to pay MVAT on entire amount of Rs. 7 lacs?
3. Can he collect the MVAT from buyer?
4.can he claim set off on Purchase of Rs. 6 lacs
REGARDS
C.A.PARESH ZATAKIA
9833855518
Dear Colleagues,
Mr. A has commenced new business. He purchased goods worth Rs. 6 lacs & sold these goods on the same day for Rs. 7 lacs, therefore he would be liable for registration under MVAT Act.
1. In this case on what amount he would be liable to pay MVAT?
2. Can he pay tax only on the difference amount of Rs. 2 lacs-(i.e.Rs.7 Lacs –Rs. 5 Lacs) or he would be liable to pay MVAT on entire amount of Rs. 7 lacs?
3. Can he collect the MVAT from buyer?
4.can he claim set off on Purchase of Rs. 6 lacs
REGARDS
C.A.PARESH ZATAKIA
9833855518
21 October 2011
Mr. Paresh bhai...
in mvat registration liability is on crossing Rs. 5.00 lacs..
Their are two views :
1.
If their are numerous bills from the sale bill crossing Rs.5.00 lacs ( eg 1st five bills total Rs.4.80 lacs ) the sixth bill is Rs. 0.30 lacs and seventh bill is Rs. 1.90 lacs.. then you have to pay vat on 0.30 + 1.90 lacs .. sale of Rs. 4.80 will not be taxable u/s 3(2)..
2. turnover above rs. 5.00 is only taxable...
for the purchase corresponding to Rs. 4.80 lacs shown under 3(2) you can not claim set off. on the balance purchase you can claim input tax credit...
He can collect vat on .30 + 1.90 lacs..( assuming he makes timely registration in one month ) of crossing the turnover.
CA Mayur Zanwar
9422855595
cazanwar@gmail.com
in mvat registration liability is on crossing Rs. 5.00 lacs..
Their are two views :
1.
If their are numerous bills from the sale bill crossing Rs.5.00 lacs ( eg 1st five bills total Rs.4.80 lacs ) the sixth bill is Rs. 0.30 lacs and seventh bill is Rs. 1.90 lacs.. then you have to pay vat on 0.30 + 1.90 lacs .. sale of Rs. 4.80 will not be taxable u/s 3(2)..
2. turnover above rs. 5.00 is only taxable...
for the purchase corresponding to Rs. 4.80 lacs shown under 3(2) you can not claim set off. on the balance purchase you can claim input tax credit...
He can collect vat on .30 + 1.90 lacs..( assuming he makes timely registration in one month ) of crossing the turnover.
CA Mayur Zanwar
9422855595
cazanwar@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
