Queries regarding t/o based registration in maharashtra vat

Mahavat 1310 views 5 replies

yashsr

2285 Points Joined April 2011

I've got the following questions regarding turnover based registration(not voluntary registration) for Maharashtra VAT:

1) If the assessee(say a proprietorship firm named ABC Enterprises) has IEC Code but has not imported anything until date, what will be turnover limit for Sales beyond which Registration is mandatory? Will it be 1 lac or 5 lac?

2) If the assessee is not an importer, the turnover limit for Sales is 5 lac. Now, if the first sale by ABC Enterprises is of Rs.550000 should it recover VAT on this entire sale? Or should it recover only on the excess of Rs.5 lac. Or should it not recover any amount at all?

Replies (5)

Harshal Fifadra

Chartered Accountant

1489 Points Joined August 2011

Answer 1 . 5,00,000

Answer 2 . The limit of 500000 is for the registration of the dealer with the department of sales tax . On crossing the limit of 5 lacs the dealer has to compulsorily register with the department . the vat in the current case would be charged on the amount of 5,50,000 since the dealer has crossed the threshold limit of 500000 and hence he would be compulsorily registered on crossing 500000

Ok .....

yashsr

2285 Points Joined April 2011

Regarding 2) I called up MVAT Department at Mazgaon(Mumbai) and somebody told me that turnover only in excess of 500000 will be chargeable to VAT. He like every other Govt Official didn't sound as he was 100% sure so just want to confirm. Is there any section or case law on this particular thing? And are you sure that VAT will be charged on entire amount?

yashsr

2285 Points Joined April 2011

any help would be appreciated

Harshal Fifadra

Chartered Accountant

1489 Points Joined August 2011

Dear Yashsr

yes it will be applicable on the whole amount of 5,50,000 ... No such case law on such topic .

In case of service tax the amount exceeding 10,00,000 shall be amount qualifying for the service tax to be levied , in case of vat it shall be 5,50,000.

It would be better if the amount of 5,50,000 is broked up in several transactions ... The last transaction exceeding 5,00,000 shall be the amount qualifying for levy of vat ........

Ok.....

yashsr

2285 Points Joined April 2011

Thanks Harshal!

What proof is required to be given to VAT authorities apart from the ones that are required for voluntary registration? In other words, what additional proof has to be given for T/o based Registration? And is it acceptable if both Purchase and Sale are in Cash?