VAT REVERSAL
This query is : Resolved
24 September 2010
How much vat is reversed in the following cases????
1. Plant & Machinery
2. Delivery VAns
3. Bicycles
4. Software
5. Trolley
6. Motor Cars
7. Computer Systems
Plz reply soon
1. Plant & Machinery
2. Delivery VAns
3. Bicycles
4. Software
5. Trolley
6. Motor Cars
7. Computer Systems
Plz reply soon
24 September 2010
PLZ mention the name of State.
25 September 2010
MUMBAI, MAHARASHTRA
03 August 2025
For **VAT Reversal** in **Maharashtra (Mumbai)**, the reversal percentage depends on the category of goods used in the business, mainly for fixed assets or capital goods. Generally, when these goods are used partly for taxable sales and partly for exempt sales or personal use, a portion of input VAT has to be reversed.
Here’s a general idea about VAT reversal percentages on common capital goods in Maharashtra VAT (MVAT):
| Item | Approximate VAT Reversal % (if used partly for exempt sales/personal use) |
| -------------------- | ------------------------------------------------------------------------- |
| 1. Plant & Machinery | 25% to 50% (depending on use & depreciation) |
| 2. Delivery Vans | Around 25% to 50% |
| 3. Bicycles | Usually full reversal if used for personal use, else varies |
| 4. Software | Typically full reversal if not used directly in taxable activity |
| 5. Trolley | Depends on use; often treated similar to plant & machinery |
| 6. Motor Cars | Usually full reversal unless used exclusively for business |
| 7. Computer Systems | 25% to 50% depending on use |
**Note:**
* The exact reversal % can vary depending on the usage pattern of the goods in the business.
* If the asset is used 100% for taxable sales, no reversal is needed.
* If it’s used partly for exempt sales or personal use, reversal is on the proportionate input VAT credit.
You should check the **Maharashtra VAT Act, MVAT Rules, and Circulars** or consult a tax professional for precise percentages and conditions, as they may change or be case-specific.
Would you like me to find any recent official circulars or detailed rules for MVAT reversals?
Here’s a general idea about VAT reversal percentages on common capital goods in Maharashtra VAT (MVAT):
| Item | Approximate VAT Reversal % (if used partly for exempt sales/personal use) |
| -------------------- | ------------------------------------------------------------------------- |
| 1. Plant & Machinery | 25% to 50% (depending on use & depreciation) |
| 2. Delivery Vans | Around 25% to 50% |
| 3. Bicycles | Usually full reversal if used for personal use, else varies |
| 4. Software | Typically full reversal if not used directly in taxable activity |
| 5. Trolley | Depends on use; often treated similar to plant & machinery |
| 6. Motor Cars | Usually full reversal unless used exclusively for business |
| 7. Computer Systems | 25% to 50% depending on use |
**Note:**
* The exact reversal % can vary depending on the usage pattern of the goods in the business.
* If the asset is used 100% for taxable sales, no reversal is needed.
* If it’s used partly for exempt sales or personal use, reversal is on the proportionate input VAT credit.
You should check the **Maharashtra VAT Act, MVAT Rules, and Circulars** or consult a tax professional for precise percentages and conditions, as they may change or be case-specific.
Would you like me to find any recent official circulars or detailed rules for MVAT reversals?
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