Value Added Tax 2002

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Registration under The Maharashtra Value Added Tax 2002

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.

When Registration under MVAT Act is Mandatory?

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.

When to get registration?

Exceeding prescribed turnover limit Within 30 days from date of exceeding turnover.
Change in constitution Within 30 days of such change.
Transfer of Business Within 30 days of such transfer.
Transfer of Business by way of succession in case of death Within 60 days of such incidence.

Benefits of obtaining Registration

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.

Important Points

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.

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