Mvat set off problem?

Mahavat 2104 views 3 replies

Software manufacturer purchase software as a capital assets, how much eligible for MVAT setoff..???? He paid 5% VAT on purchase..

 

Regards 

 

CA Bhanwar Borana

Replies (3)

For a trader the set off for Software purchase is disallowed under RULE 54 of MVAT Act , 2002

For a software manufacturer , the manufacturer will be eligible for partial set off on purchase of software as capital asset and accordingly retention will be applicable as per RULE 53(7A) of MVAT Act , 2002

 

Ok ...

In Maharashtra, Hotel selling complementary as well as chargeable breakfast, whether it should pay the VAT on complementary breakfast or it should reduce the VAT set off on proportionate basis. Please refer the provision, if possible.

 

Thanks

 

@ Naveen :

In case of hotelier or hotel business generally composition scheme @ 5 % is applicable on the turnover of sales .

In the instant case the hotelier is opting composition as well as normal scheme of VAT and so VAT SET OFF should be reduced on a proportionate basis as there is no set off available in case if a dealer opts for a composition scheme ..

 

An appropriate method for reducing the set off on a proportionate bais would be :

STEP 1 : Take the total of the turnover of both the kind of sale 

STEP 2 : Express a percentage of turnover of breakfast  with the total turnover 

STEP 3 : Apply this percentage on the set off of the goods purchased and that will be the set off of the chargeable breakfast 

 

Ok ...


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