Dear Sir,
My Friend started business. Dealing in article taxable @ 5% MVAT.
Now situation is Business Started on 1/07/2012
Turnover crossed Rs. 5,00,000 on 01/12/2012.
Applying for Regn on 5/04/2013
Turnover as on 05/04/2013 Rs. 7,50,000
Plz tell me how MVAT taxliability will be calculated.
hello,
from what i know, tax liability will start from date on which your registration is granted, which will probably be the date on which your turnover crossed 5L.
since one cannot stop business till regsitration is granted, one probably should start charging additional 5% amount in invoice, or be ready to take a cut of 5% (for sales from application date to vat-registered date) in margin when registration is granted.
what even i would i like to know is can you claim setoff of purchases prior to registration against vat collected post registration at the time of filing return after 31-march (already asked this question to the forum).
if any of the experts can guide both of us, it will be great help.
thanks.
shriniwas.k.
CAclubindia
