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VAT Liability

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(Querist)
17 April 2009 Pls Help me on this situation
1) I had registered for MVAT on 30 Mar where my turnover was rs 8.5 Lakhs
2)My turnover limit had exceeded on Oct 2008
3)what will be my mvat liability to pay
i.e a) 850000*4%=34000
b) 350000*4% (850000-500000)=14000
and whether the input credit on purchase can be taken in to consideration while paying mvat
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Sourabh

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Sourabh (Expert)
17 April 2009 Option (a) is partially correct.

First of all, a trader who has turnover above 5 lac needs to be registered under MPVAT Act and pay Vat tax.It is called as threshold limit.If you cross the limit you have to pay tax on the whole of the amount and not on the additional amount.

You have to pay tax @4/@12 depending on the nature of goods you trade in.

Input credit can be availed on the purchases as well.

You can calculate Vat tax assuming it to be inclusive in 8.5 lac turnover, when you have not charged & collected separately in the bills/invoices.

means vat liability will be

(850000*4)/104=32695 less input credit availed.

As you are a new trader registered in Vat Act,make sure you have filed monthly returns and availed input credit from time to time.
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CA Nitin Wadhwani

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CA Nitin Wadhwani (Expert)
18 April 2009 You will have to pay tax from the sales which crossed 5 Lacs but input tax credit will be available from the day you are registered.
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Sushant Panigrahi

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Sushant Panigrahi (Querist)
22 April 2009 can u specify the section or sub section of the MVAT Act where it clearly mention
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Aashok Kumar Sharma online

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Aashok Kumar Sharma online (Expert)
02 August 2025 https://docs.google.com/document/d/1QoAcY184oqdVgAnrvWWamYasSjgMXxTsX7JYr441lQU/edit?usp=sharing
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