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MVAT Act has replaced the Bombay Sales Tax Act, 1959 w. e. f. 1st April 2005 and now the sales tax is collected by the Maharashtra Government under MVAT Act, 2002.
What distinguishes a Private limited company from earlier form of business is its limited liability and its separate legal existence than its owners i.e. shareholders.
1. New dealers whose turnover of sales exceeds the prescribed limits during any year.
2. A successor in business of any dealer shall become liable to pay tax on and from the date of succession.
3. There is option to apply voluntarily even though turnover does not exceed the prescribed limits during any year.
1. It empowers the dealer to collect tax.
2. A registered dealer gets the benefits of set off (input tax credit)
3. Business without registration invites penalty/prosecution.
4. A Central Sales Tax registered dealer can purchase goods outside state at concessional rates against various declaration forms.
5. Registered dealers are preferred while awarding the government contracts.
1. Dealer having more than one place of business in different locations within the state is required to make single application in respect of all such places.
2. Dealer has to inform the VAT office on occurrence of following events
a. Change in constitution/ownership or transfer of Business,
b. Discontinuance of Business,
c. Change in the name of business,
d. Starts activity from additional place of business or godown,
e. Starts dealing in different commodities other than mentioned in RC,
f. Opening or closing of bank accounts of business.
Dealer has to get the RC amended to above effects.