Mvat Computation 2014-2015

8/10/2019 Mvat Computation 2014-2015

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SUCCESS ACADEMY 1 T.Y.B.Com.

BASIC CONCEPTS OF VAT

WHAT IS VAT?Value Added Tax (VAT) is a modern and progressive form of sales tax. It is charged and collected

by dealers on the price paid by the customer. VAT paid by dealers on their purchases is usually

available for set-off against the VAT collected on sales. VAT in the form of CENVAT (Excise) isalready in force in India for quite some time.

IS VAT YET ANOTHER TAX?

No; it will replace the following four existing taxes: The Bombay Sales Tax Act, 1959 The Maharashtra Sales Tax on the Transfer of Right to Use Any Goods For Any Purpose Act,

1985 The Maharashtra Sales Tax on the Transfer of Property in Goods Involved in the Execution of

Works Contract (re-enacted) Act, 1989

The Bombay Sales of Motor Spirit Taxation Act, 1958.

WHAT ARE THE BENEFITS OF VAT?

It is simple, transparent and progressive Business friendly system of taxation Reduction in the number of tax rates to only two main rates 5% and 12.5% Reduction in the effective tax rate for many goods Elimination of tax on tax existing in the sales tax system Full set-off available for VAT paid on most business purchases Simplification of tax forms and procedures

Greater reliance on self assessment and voluntary compliance by dealers.

WHAT TYPES OF BUSINESSES ARE LIABLE FOR VAT?

VAT applies to all types of business including Importers, Manufactures, Distributors,Wholesalers, Retailers, Works Contractors, and Lessors.

HOW IS VAT CHARGED?All registered dealers, regardless of where they are in the chain of manufacture and production

must charge VAT on their sales of taxable goods and collect it from their customers. Registered

dealers must issue a tax invoice to other registered dealers showing the VAT amount being chargedas a separate amount.Registered dealers who pay VAT on their purchases can normally claim a set-off for the

VAT paid to their suppliers. As a result, VAT is not a cost to the dealers. Dealers must ensure thattax is charged separately in their purchases invoice in order to be eligible to claim set-off.Certain dealers who sell mainly to consumers at retail level can opt for a simplified system of VATcalculation and payment under a Composition scheme. Under the Composition Scheme, dealers will notissue a tax invoice or show VAT as a separate amount on a bill or cash memorandum.

WHAT ARE THE OBLIGATIONS OF DEALERS REGISTERD FOR VAT?

Dealers who are required to be registered for VAT must: Charge and collect VAT on their sales of taxable goods Issue proper tax invoices Keep proper records and books of account Calculate the VAT due to Government based on VAT charged on sales LESS any VAT available as a

set-off on business purchases File VAT returns on a regular basis declaring their VAT liability Pay the amount of VAT due to the Government with the VAT return.

WHAT IS THE RATE OF VAT?

Under the VAT, the tax rates have been simplified. There are only two main rates of VAT; 5% for items consisting mainly of raw materials used in the manufacturing process, IT products

and some goods of common consumption. 12.5% for all goods unless they are listed under the other rates.


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Foodgrains in including pulses, milk, vegetables and books are not subject to VAT. In addition,there are two other rates for specific items:

1% for gold, silver, other precious and semi precious stones and their jewellery 25% for liquor

The only exception to these rates is for the sale of motor spirits, which have special tax ratesbased on the existing Bombay Sales of Motor Spirit Taxation Act, 1958, subject to a floor rate of20%.

WHAT IS SET-OFF/INPUT TAX CREDITThe essence of VAT is in providing set-off for the tax paid earlier, and this is given effect

through the concept of input tax credit/rebate. This input tax credit means setting off the amountof input tax by a registered dealer against the amount of his output tax. The Value Added Tax (VAT)is based on the value addition to the goods, and the related VAT liability of the dealer is calculatedby deducting input tax credit from tax collected on sales during the payment period (say, a month).

VAT CHAIN

Raw Material Sale Price Rs. 1,000 ManufacturerProducer VAT Rs. 100

Sales Price Rs.1,500

Total VAT Rs. 150

VAT Payable

150-100 = Rs. 50

Wholesaler

Sales Price Rs. 1,800

Total VAT Rs. 180

VAT Payable

180-150 = Rs. 30

Sales Price Rs. 2,000

Consumer Total VAT Rs. 200 Retailer

VAT Payable

200-180 = Rs. 20


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DEFINATIONS1.BUSINESSIn this Act, unless the context otherwise requires,-

Business includes,-

(a) any service;(b) any trade, commerce or manufacture;

(c) any adventure or concern in the nature of service, trade, commerce or manufacture;

Whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern

is with a motive to make gain or profit and whether or not any gain or profit accrues from such

service, trade, commerce, manufacture, adventure or concern.

BUSINESS

2.

DEALERIn this Act, unless the context otherwise requires, -

Dealer means any person who for the purposes of or consequential to his engagement in or, in

connection with or incidental to or in the course of, his business buys or sells, goods in the

State whether for commission, remuneration or otherwise and includes, -

a) a factor, broker, commission agent, del-credere agent or any other mercantile agent, by

whatever name called, who for the purposes of or

consequential to his engagement in or in connection with or incidental to or in the course

of the business, buys or sells any goods on behalf of any principals whether disclosed or

not;b) an auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who

organizes the sale of goods or conducts the auction of goods whether or not he has the

authority to sell the goods belonging to any principal whether disclosed or not and

whether the offer of the intending purchaser is accepted by him or by the principal or a

nominee of the principal;

c) a non resident dealer or as the case may be, an agent residing in the State of a non-

resident dealer, who buys or sells goods in the State for the purposes of or consequential

to his engagement in or in connection with or incidental to or in the course of, the

business.d) any society, club or other association of persons which buys goods from, or sells goods to,

its members.

BUSINESS [S.2 (4)]

Provision of S.2 4Includes

Service, Trade, Commerce,

Manufacture [STCM]

Adventure or Concern in STCM

Irrespective of

Profit Motive / Accrual

Expln. To S.2 (4)

Deemed to Include

Raising Man-made Forests,

Seedlings or Plants

Related Transaction In

Capital Assets

1

2

3 Purchases Debited/Sale Credited to P & L A/c

Transaction for Commencing/

Closure of STCM/

Adventure/ Concern

(i)

(ii)

(iii

(iv


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DEALER

State whether the following person is a dealer under the MVAT, 2002 giving reasons:

1. Auctioneer

2. Raj Travels, carrying passengers from Mumbai to Pune by bus.3. Jaslok Hospital, selling old X-Ray Machines4. MV & Co. Chartered Accountants.

Solution:

No. Activity Is itDealer

Reasons

(1)

(2)

(3)

(4)

AuctioneerRaj Travels, carrying passengersFrom Mumbai to Pune by bus.Jaslok Hospital, selling old X-Ray MachinesMV & Co. Chartered Accountants.

YesNo

YesNo

Vide definition u/s 2 (8)Engaged in services

To the extent of sale of machinesengaged in services.

3. IMPORTERImporter means a dealer who brings any goods into the State or to

whom any goods are dispatched from any place outside the State.

DEALER [S.2 (8)]

Means & Includes Deemed to Include Excludes

1 2

3

1

2

3

Prov. Of S.2(8)

Buys/Sells Goods in

State in Course

of Business

Factor/Broker/Agent

Auctioneer

Non-resident Dealer

4

Society, Club, AOP

Dealing with

members5

Ex lanation to S.

Customs

Govt. Departments

Local Authorities

Port Trusts/Public

Charitable Trust

Railways / Konkan

Railways

Societies, Clubs,

Insurance/Financial

Corporations/Scheduled Banks

MSRTC

Shipping/

Construction/Air

Transport/Air-

Lines/Advt. Agencies

Govt. Corp.

1

2

3

4

5

6

7

8

9

10

1

2

3

Exceptions to S.

Agriculturist

Educational

Institution

Transporter-Hirer


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4.MANUFACTUREIn This Ac, unless the context otherwise requires,-

Manufacture, with all its grammatical variations and cognate expressions

includes producing, making, extracting, altering, ornamenting, finishing or

otherwise processing, treating or adapting any goods.

Explain with reasons, whether the following activities are manufacturing activities as per the

provisions of the Maharashtra Value Added Tax Act, 2002:

(1) Cutting steel sheets into smaller sheets

(2)

Polishing gold ornaments(3) Assembling TV set from various parts(4)

Assembling computer for the customers household use.Solution:

No. ActivityIs it

ManufactureWhy

(1)(2)(3)

(4)

Cutting steel sheets into smaller sheetsPolishing gold ornamentsAssembling TV set from various parts

Assembling computer for the

customers household use

NoNoYes

Yes

No new product comes into existence.No new product comes into existence.A new product comes into existence,having different properties, qualities &use.

A new product comes into existencehaving different properties, qualities &use.

MANUFACTURE [S. 2 (15)]

Includes

Activity Means

ProducingBring into existence new product

[Produce vanaspati oil from groundnut oil]

Create, generate, and assemble

[Make candles from wax]

Take out [extract oil from groundnuts]

Change

Make appearance presentable

Give final touches

Transform

[Process raw film into cinema reels]

Treat a material to make it usable

[Treat animal-skin to make leather]

Change for desired use

[Coating of scent on raw agarbatti]

Making

Extracting

Altering

Ornamenting

Finishing

Processing

Treating

Adapting

(a)

(b

(c)

(d

(e)

(f)

(g)

(h

(i)


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Explain whether the following activities are manufacturing activities as per the provisions of the

Maharashtra Value Added Tax Act, 2002:

(1)Manufacturing of Ball Bearings(2)

Labelling

(3)

Retreading of old tyres(4)Reconditioning of machinery.

No. ActivityIs it

ManufactureWhy

(1)

(2)

(3)

(4)

Manufacturing of Ball Bearings

Labeling

Retreading of old tyres

Reconditioning of machinery

Yes

No

No

No

A new product with distinct name,

properties & use comes into existence.

No new product comes into existence.



5.GOODSGoods means every kind of movable property not being newspapers,actionable claims, money, stocks, shares, securities or lottery tickets

and includes live stocks, growing crop, grass and trees and plants includingthe produce thereof including property in such goods attached to or forming part

of the land which are agreed to be severed before sale or under the contract of sale.

GOODS

1

State whether the following are goods under the MVAT Act, 2002:

(1) Mechanical Equipment. (2) Newspaper.(3) Lottery Tickets. (4) DVD Player.(5) Actionable claim e.g. a debt (claim) for whose recovery a court case (actionable) can be filed(6) Chickens. (7) Vacant Land.(8) Trucks. (9) Import License.(10) Power loom. (11) Loom Hours.(12) SIM card in Mobile Phone. (13) Shares in Infosys Ltd.Solution:

(1)

Yes (2) No (3) No (4) Yes (5) No (6) Yes (7) No (8) Yes (9) Yes (10) Yes (11) No (12) Yes (13) No

Includes

Every Kind of Movable Property

Livestock

Growing Crops, Grass, Trees,

Plants; their Produce

Excludes

Newspapers

Actionable Claims

1

2

3

Money

Stocks, Shares, Securities

1

2

4

5

GOODS [S.2 (12)]

Things Attached to Land,

Severed Before / Under

Lottery Tickets

3

4


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State with reasons whether the following are Goods as per the provisions of Maharashtra Value

Added Tax Act, 2002:

(1) Newspapers(2)Mango Trees

(3)

Equity Share of Siemens Ltd.(4)Residential Flat used for business(5)Malai Kulfi

No. Activity Whether Goods Reasons

(1)

(2)

(3)

(4)

(5)

Newspapers

Mango Trees

Equity Share of Siemens Ltd.

Residential Flat used for business

Malai Kulfi

No

Yes

No

No

Yes

Specifically excluded

Specifically included


Immovable Property-excluded

Goods



(a)Lottery Tickets(b)Agricultural Plot(c)Preference shares in SR steels Ltd.(d)Import Licence(e)One Hundred US Dollars ($ 100)


(a)

(b)

(c)

(d)

(e)

Lottery Tickets

Agricultural Plot

Preference shares in SR steels Ltd.

Import Licence

One Hundred US Dollars

No

No

No

Yes

No


Immovable Property

Shares not included

Can be sold

Money Specifically Excluded



(a)

Malai Paneer(b)Equity Shares of TCS Ltd.(c)Jackfruit Trees(d)Lottery Tickets(e)Import Licence


(a)

(b)

(c)

(d)

(e)

Malai Paneer

Equity Shares of TCS Ltd.

Jackfruit Trees

Lottery Tickets

Import Licence

Yes

No

Yes

No

Yes

Trade able Commodity


Specifically included


Intangible Goods

SALESale means a sale of goods made within the State for cash or deferred payment

or other valuable consideration but does not include a mortgage, hypothecation,

charge or pledge; and the words sell, buy and purchase,

with all their grammatical variations and cognate expressions,

shall be construed accordingly.


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No. Transaction Yes/No Reasons

(a)

(b)(c)

(d)

(e)

Sale of Washing machines on Hire Purchases

System

Hypothecation of GoodsTransfer of Goods from H.O. to Branch

Gift of Jewellery to a friend

Sale of Scrap

Yes

NoNo

No

Yes

Specifically included under definition

Excluded under definition

No transfer of ownershipNo consideration involved

Valuable consideration

received/receivable

Explain with reasons whether the following are Sales as per the provisions of MVAT Act, 2002.

(a) Sale of food stuff in College Canteen(b) Computer servicing charges received(c) Free samples provided by a Pharmaceutical Company(d) Exchange of Mobile HandsetNo. Transaction Yes/No Reasons

(a)(b)(c)

(d)

Sale of Food stuff in College CanteenComputer Servicing Charges receivedFree samples provided by a PharmaceuticalCompanyExchange of Mobile Handset

YesNo

NoYes

Sale of goods for considerationNo goods involved; only servicing

Goods supplied but no considerationGoods for consideration

SALE PRICESale price means the amount of valuable consideration paid or payable to a dealer

for any sale made including any sum charged for anything done by the seller inrespect of the goods at the time of or before delivery thereof,

other than the cost of insurance for transit or of installation,

when such cost is separately charged;

SALE PRICE

11

Prov. Of S.2 25

Consideration for Sale

Including Charges for anything

done to goods At /

Before Delivery

But Excludes Insurance for

transit / installation

Expln. To S.2 (25)

Includes Excise / Custom /

Prohibition Duties

Excludes MVAT due to a seller

1

2

3

Includes Deposit

Incidental to Sale

I

II

III

SALE PRICE[S.2 (25)]

1 2


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COMPUTING SALE PRICE

Particulars Rs. Rs.

Consideration xxx

Add :

Other Charges xxx

Excise Duty xxx

Customs Duty xxx

Related Deposit xxx

Less:

Transit insurance xxx

Installation xxx

MVAT xxx

Total Sale Price

xxx

xxx

xxx

A product is sold @ Rs. 100 per unit. In a bill, 200 units were sold. The octroi is @ Rs. 2 per unit;excise is @ Rs.12 per unit. The packing & forwarding charges were Rs. 500.Calculate the sale price.

Computing sale price

Particulars Rs.

A. ConsiderationB. Excise (20012)

C.

PackingSale Price

20,0002,400

50022,900

Sales Tax will be charged on this sale price of Rs. 22,900 (and not on the basis price ofRs. 20,000). Thus @ 10% the sales tax would amount to Rs.2, 290.

Compute Sales Price chargeable to Sales Tax under the MVAT Act, 2000.

(1) Manufacturing Cost of Rs. 1,000 units @ 500 per unit.(2)Excise duty Rs. 200 per unit.(3)Installation Charges Rs. 30,000.(4)Transit insurance Rs. 6,750.

Calculation of Sale PriceParticulars Rs.A. Cost of Goods (1,000 500)B.

Excise Duty (200 1,000)Sale Price

5,00,0002,00,0007,00,000

Sale Price Per unit Rs. 7, 00,000 1,000 = Rs. 7000Transit Insurance & Installation Charges are not be included in sale price.


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PURCHASE PRICEPurchase Price means the amount of valuable considerationpaid or payable by a person for any

purchase made including any sum charged for anything done by the seller in respect of the goods at the

time of or before delivery thereof, other than the cost of insurance for transit or of installation. When

such cost is separately charged

EXHIBIT: PURCHASE PRICE

RE-SALEResale means a sale ofpurchase goods-

(i)

in the same form in which they were purchased, or

(ii) without doing anything to them which amounts to, or results in, a manufacture, and the word

resell shall be construed accordingly.

TURNOVER OF SALES

Turnover of sales means the aggregate of the amounts of sale price received and receivable by adealer in respect of any sale of goods made during a given period after deducting the amount of-

(a)sale price, if any, refunded by the seller, to a purchaser, in respect of any goods purchased and

returned by the purchaser within the prescribed period; and

(b)

deposit, if any, refunded in the prescribed period, by the seller to a purchaser in respect of any

goods sold by the dealer.

TURNOVER OF SALES

PURCHASE PRICE [s. 2(20)]

Prov. Of S. 2(20) Expln. to S. 2(20)

Consideration for purchase Includes Excise/Custom/

Prohibition Duties

Excludes MVAT due to a seller

Includes Deposit Incidental to

purchase

Including Charges for

anything done to goods

At or Before Deliver

But Excluding Insurance for

Transit/installation

1

2

3

I

II

III

TURNOVER OF SALES [s. 2(33)]

Prov. Of S. 2(33) Expln. to S. 2(33)

Total Sale Price Received/

Receivable

Price Receivable or Due &

Payable for HP/Sale on

installment/ Use of goods

LessPrice of sales Before

Cancelling R.C.

1

2

I

II

Sale Returns within

6 months

Deposit refunded within

6 months

a

b


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Maharashtra Value Added Tax, 2002

MVAT: REGISTRATIONSteps Particulars

(I) Conditions

Importer

a)

Taxable Sales/purchases at least Rs.10,000

b)

Sales Turnover exceeds Rs.1,00,000

Any Other Persons

a)

Taxable Sales/purchases at least Rs.10,000

b)

Sales Turnover exceeds Rs.5,00,000

(II) Compute Total/Cumulative T/O Rs.

1.

2.

3.

Compute taxable Turnover

1.1 Local Purchases

1.2 Sales

Compute Tax-free Sales Turnover (Sch.A)

Compute Total Sales Turnover (1.2 +2)

(III) Check Conditions Y/N

(1)

(2)

(3)

Taxable T/O (1.1 or 1.2) > 9,999?

Importer

Total Sales T/O (3) > 1, 00,000?

Liable As Importer?

Not liable, if Condition (1) & (2) = No

Liable, if both Condition (1)& (2) = Yes

Non-Importer

Total Sales T/O (3) > 5,00,000

Liable As Non-Importer?

Not Liable, if Condition (1) & (3) = No

Liable, if both Conditions (1) & (3) = Yes

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Note:

a) Taxable Purchase includes only local purchases taxable under MVAT.

b) Taxable Sales includes (i) local sales taxable vide S.7 under Schedule B,C,D or E and (ii)Sales not Subjected to

Tax u/s 8 e.g. Inter State Sales , exports etc.

c) Tax free goods means goods (under Schedule A) against which the rate of tax is shown to be Nil; and Taxable

Goods means goods other than tax free goods [ S.2(30)].


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1. From the Following information furnished to you by Mr. Deven regarding his purchases and sales transactions, find

out from which months he will be liable to pay tax as per the provisions of the MVAT Act, 2002.

Month

Details of Purchases Details of sales

Tax Free

Goods Rs.

Taxable

Goods Rs.

Tax Free

Goods Rs.

Taxable

Goods Rs.

April 2014 to December 2014January 2015

February 2015

March 2015

38,00010,000

1,80,000

3,000

3,000-

1,800

11,200

40,00015,000

95,000

30,000

3,000-

-

-

2. From following information furnished to you by Mr. Care-free regarding his purchases and sales transactions, find

out from which months he will be liable to pay VAT as per provisions of the MVAT Act, 2002.

3. Mr. Hemant furnished the following information regarding his turnover of purchases and sales transactions. Find

out whether, as per the provisions of the Maharashtra Value added Tax Act; 2002.he is liable for

registrations (i.e. for payment of Maharashtra Value Added Tax).

Months

Details of purchases (Local) Details of Sales made within the state

Tax-Free

Goods(Rs.)

Taxable

Goods(Rs.)

.Tax Free

Goods (Rs.)

Taxable

Goods (Rs.)

Total

(Rs.)

August 2014

February 2015March 2015

1,03,000

1,63,0001,83,000

5,000

2,4002,400

80,000

2,00,0001,60,000

6,000

1,6001,600

86,000

2,01,6001,61,600

4. Mrs. Anju who started business during 2014-2015 furnishes the following information regarding her purchases and

sales transactions.

Find out whether as per the provisions of the MVAT Act, 2002 she is liable for registration.

Months

Purchases Within State Sales Within State

Taxable Goods Tax Free Goods Taxable Goods Tax Free Goods

Rs. Rs. Rs. Rs.

April 2014

May 2014

June 2014

July 2014

3,000

6,000

600

3,000

80,000

1,80,000

3,20,000

70,000

6,000

3,000

2,000

1,600

60,000

10,000

4,52,000

20,000

5. From the following information furnished to you by Mr. shaker, a new dealer regarding his purchase & sale

transactions,find out from which month he will be liable to pay tax as per the provisions of MVAT Act, 2002.

Month

(A) Details of Purchases (B) Details of Sales

Inside Maharashtra State Import

Tax Free

Goods(Rs)

Taxable

Goods(Rs)

Tax Free

Goods(Rs)

Taxable

Goods(Rs)

Tax Free

Goods(Rs)

Taxable

Goods(Rs)

April 2014

May 2014

June 2014

July 2014

22,000

30,000

60,000

1,12,000

3,000

2,000

3,000

3,600

2,000

8,000

14,000

2,000

1,000

-

800

1,000

50,000

60,000

8,000

80,000

4,000

2,000

-

2,000

6. The following information is furnished to you by Mr. Nihar, who started business in April 2014 regarding his

purchase and sale transactions. Find out in which months, he will be liable to pay tax as per the provisions of

MVAT Act, 2002.

Month

Details of purchases Details of Sales

Taxable Goods Tax Free Goods Taxable Goods Taxfree Goods

Rs. Rs. Rs. Rs.

April 2014 To Dec2014

January 2015

February 2015

March 2015

38,000

10,000

80,000

6,000

4,000

-

4,000

3,000

40,000

16,000

90,000

30,000

5,000

-

-

-

Month

Details of purchases Details of Sales

Tax Free

Goods

RS.

Taxable Goods

Rs.

Tax Free

Goods

Rs.

Taxable Goods

Rs.

April2014 to November2014

December 2014

January 2015

February 2015

March 2015

40,000

60,000

30,000

40,000

70,000

4,000

4,000

3,000

-

20,000

50,000

70,000

30,000

50,000

1,00,000

1,000

8,000

800

30,000

40,000


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7. Raja, who started business in April 2014, is a manufacturer. From the following details find out from which

months she is liable for registration as per the provisions of the MVAT Act, 2002.

Month

Purchases Taxable within Maharashtra Sales Taxable within Maharashtra

Raw Material

April 2014May 2014

June 2014

July 2014

30,00036,000

-

5,60,000

30,00040,000

18,000

5,40,000

8. Mr. Amit is trader and importer who started business in April 2014. From the following information, find out on

which day he will be liable to pay tax as per provisions of the MVAT Act, 2002.

Date

Purchase Sales

Taxable Goods Taxable Goods

Within Maharashtra Out of MaharashtraWithin

Maharashtra

15-4-2013 ----------------

20-4-2014 ----------------25-4-2014 ----------------

28-4-2014 ---------------

30-4-2014 ---------------

05-5-2014 ---------------

08-5-2014 ---------------

20-5-2014 ---------------

31-5-2014 ---------------

30,000

--

40,000

-

-

30,000

-

-

-

-6,000

-

-

24,000

-

-

-

-

20,000-

-

90,000

-

-

-

40,000

9. Dilip Enterprises is a Dealer who started business in April 2014.Find out from which month he will be liable for

registration as per the provisions of MVAT act, 2002.

Month 2014Purchases Sales

Taxable Tax-free Taxable Tax-free

April ------------------

May -----------------

June ----------------

July -----------------

August ----------------

September -----------------

October -----------------

November -----------------

December ----------------

500

1,000

2,000

2,500

3,000

3,500

4,500

6,000

4,500

2,500

4,500

6,500

24,000

25,000

52,000

72,000

25,000

80,000

500

500

1,500

2,000

4,000

1,000

2,500

4,500

6,000

1,000

3,000

10,000

26,000

28,000

65,000

75,000

26,000

2,92,000

10. Determine from which month Lalit, who started business in Apr. 2014 is liable registration under MVAT Act:

Month

Local Purchases Purchases from Gujarat Sale inside state

Taxable Tax-free Taxable Tax-free Taxable Tax-free

May, 2014 -----------

June, 2014 -----------

July , 2014 -----------

Aug, 2014 ----------

Sept, 2014 -----------

Oct, 2014 -----------

30,000

1,000

20,000

40,000

10,000

2,000

4,000

5,000

1,000

2,000

10,000

8,000

1,000

4,000

6,000

4,000

3,000

4,000

500

500

22,000

1,000

5,000

4,000

15,000

20,000

10,000

5,000

22,000

40,000

5,000

4,000

2,000

5,000

8,000

5,000

11.From the following information furnished to you find out from which month the dealer will be liable to pay tax

as per provision of the MVAT Act, 2002.

Month

Purchases Sales

Tax FreeGoods Rs.

TaxableGoods Rs.

Tax FreeGoods Rs.

TaxableGoods Rs.

April, 2014 to December 2014

January,2015

February,2015

March, 2015

40,000

20,000

5,00,000

5,000

5,000

-

2,000

10,000

35,000

20,000

5,20,000

8,000

4,000

-

-

-

12. From the following information of Mr. Anil, who started business in April 2014, find out from which month he is

liable for registration as per the provision of MVAT Act, 2002.

Month and year

Purchase within State Sales within State

Taxable

Goods Rs.

Tax-free

Goods Rs.

Taxable

Goods Rs.

Tax free

Goods Rs.

April 2014May 2014

June 2014

July 2014

2,0008,000

1,000

2,000

70,0004,90,000

30,000

60,000

5,0004,000

4,000

1,000

50,0005,21,000

50,000

22,000


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13. Following information is given by Mr. Dhaval who started business on 1-4-2014 relating to his Sales and

Purchases. Find out whether he is Liable to Vat or Not.

MonthPurchases within state Sales within state

Taxable goods Tax free goods Taxable goods Tax free goods

April to Dec.2014

January, 2015February, 2015

March, 2015

4,000

1,000--

4,000

62,000

29,00030,000

96,000

3,000

2,0001,000

5,000

59,000

48,00039,000

88,000

14.From the following information of Mr. Suhas who started business on 1-4-2014 find out whether he is liable for

registration or not as per the provisions of MVAT Act. Give reasons for your answer.

Month

Details of Purchases Details of Sales

Taxable

Rs.

Tax free

Rs.

Taxable

Rs.

Tax free

Rs.

April 2014 to October 2014

November 2014 to January 2015

February 2015

March 2015

1,000

4,000

2,000

4,000

49,000

46,000

38,000

3,76,000

3,000

5,000

1,500

4,500

47,000

55,000

68,500

3,75,500

15. M/S Apurva Industries started production of plastic goods from October, 2014. The following is available of its

activities. Find out from which month it is liable for registration under the MVAT Act, 2002.

Month Tax Free

Purchases

Rs.

Taxable

Purchases

Rs.

Tax Free

Sales

Rs.

Taxable

Sales

Rs.

2014

October

November

December

2015

January

FebruaryMarch

1,200

8,000

2,000

1,600

1,2003,200

14,000

2,400

24,000

16,000

20,00018,000

2,000

--

1,600

2,000

4,4001,000

1,000

--

2,000

18,000

15,60019,000

16.Mr.Ponting is a new dealer. From the following information find out on which day he will be liable to pay tax.

Give reasons for your answer:

DatePurchase Sales

Taxable Tax Free Taxable Tax Free

02-04-13

04-04-13

10-04-13

20-04-13

30-04-13

02-05-1310-05-13

20-05-13

31-05-13

01-06-13

03-06-13

10,000

--

20,000

--

40,000

--5,000

10,000

--

15,000

5,000

15,000

--

40,000

--

60,000

--20,000

10,000

--

3,15,000

10,000

--

6,000

5,000

10,000

--

50,00010,000

5,000

10,000

20,000

20,000

--

14,000

10,000

40,000

--

15,00030,000

15,000

10,000

3,20,000

30,000

17.Mr. Nishu, who started business in December 2014, furnishes the following information regarding his turnover

of purchases and sales purchases and sales transactions. You are requested to find out whether & from which

month, as per the provisions of the MVAT Act, 2002, he is liable for registration and paying VAT.

Month

Details of PurchasesDetails Of sales

Import Local

Taxable Tax-free Goods TaxableGoods Total Tax-freeGoods TaxableGoods Total

December 2014

January 2015

March 2015

1,60,000

1,00,000

1,80,000

2,000

4,000

3,000

2,400

2,400

5,000

1,64,000

1,06,400

1,88,000

2,00,000

80,000

1,60,000

6,000

1,600

1,600

2,06,000

81,600

1,61,000

18.Mr. Anand is a new dealer. Find out from which month he will be liable for registration as per the provisions of

the MVAT Act, 2002.

Month Year 2014 Purchases Sales

Taxable Tax-free Taxable Tax-free

April To June --------------

July --------------

August --------------

September --------------October --------------

November --------------

December ---------------

3,500

2,500

3,500

3,0004,500

6,000

9,000

13,500

24,000

52,000

25,00072,000

2,25,000

75,000

2,500

2,000

1,000

4,0002,500

4,500

7,000

14,000

26,000

65,000

28,00075,000

3,26,000

84,000


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24.M/S Thatte & Co. commenced business on 19thMarch, 2014 from the following particulars regarding purchases

and sales Transactions, find out from which date they will be liable for Registration and to pay tax per the

provisions of MVAT Act, 2002.

Month

Details of PurchasesDetails of Sales

Out of state Within State

Taxable Taxable Tax free Rs. Taxable Tax free Rs.19-3-2014

24-3-2014

28-3-2014

31-3-2014

03-4-2014

04-4-2014

10-4-2014

12-4-2014

15-4-2014

7,000

8,000

4,000

5,000

16,000

5,000

4,000

5,000

10,000

12,000

6,000

5,000

8,000

8,000

4,000

8,000

20,000

18,000

16,000

12,000

10,000

18,000

20,000

12,000

14,000

10,000

10,000

7,.000

10,000

18,000

12,000

9,000

500

12,500

16,000

22,000

15,000

12,000

22,000

2,000

20,000

28,000

32,000

25,000

15,000

25.M/S Herwadkar and associates commenced business on 27 thMarch, 2014. From the following particulars

regarding purchases and sales transactions, find out from which date he will be liable for Registration and to paytax as per the provisions of MVAT Act, 2002.

DatePurchases Sales

Taxable Tax free Taxable Tax Free

27-3-2014

28-3-2014

29-3-2014

2-4-2014

4-4-2014

7-4-2014

8-4-2014

10-4-2014

15-4-2014

6,000

3,000

1,500

6,000

4,000

10,000

6,000

4,000

5,000

18,000

25,000

80,000

2,28,000

1,75,000

1,00,000

1,20,000

75,000

1,10,000

8,000

1,000

500

8,000

1,000

20,000

15,000

10,000

5,000

24,000

32,000

95,000

3,75,000

1,05,000

1,10,000

1,05,000

2,10,000

1,28,000

26.M/S Kanade & Co. commenced business on 16thMarch, 2014 from the following particulars regarding purchases

and sales transactions: find out from which date they will be liable for Registration and to pay tax as per the

provisions of MVAT Act, 2002.

Month

Details of PurchasesDetails of sales

Out of State Within State

Taxable Taxable Tax free Taxable Tax free

16-3-13

19-3-13

22-3-13

30-3-13

03-4-13

06-4-1311-4-13

15-4-13

11,000

10,000

8,000

7,000

15,000.

20,00012,000

18,000

6,000

3,000

2,000

4,000

8,000

6,00012,000

14,000

12,000

13,000

14,000

18,000

10,000

12,00016,000

11,000

8,000

21,000

10,000

5,000

19,000

40,00010,000

18,000

15,000

11,000

20,000

6,000

21,000

15,00012,000

28,000


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MVAT COMPUTATION

No. Month Working

Schedule A B C D E Total

1 % Rate 0% 1.00% 5.00% 20.00% 12.50%

2 Taxable GTO

3 Deduction

4 Taxable NTO [ 2-3 ]

5 Tax [1 X 4]

6 Purchase

7 Set-off in Tax [ 1X6 ]

8 Reduction in Set off

9 Set off B/f

10 Net Set off [7-8+9]

11 Final VAT or (Set off C/f) [5-10]

Note :-

1. In absence of details , rate of tax on sales & local purchase is taken @12.5%

2. CST on OMS purchases from Bihar / Gujarat is not available for set off.

3. It is presumed that VAT Return is to be made Monthly & not quarterly.

4. Schedule C sales are assumed to be Declared Goods taxable @5%.

5. Export sales are not taxable.

6. OMS sales are taxable under CST Act.

1. From the following information in respect of sales of schedule D goods liable to sales tax @ 20%, you are required

to find out total amount of sales-tax for the below mentioned months:

Months Taxable Sales Rs.

April 2014 to January 2015 8,00,000

February 2015

March 2015

8,00,000

2,00,000

2. From the following information in respect of schedule E goods, you are required to find out total amount of sales

tax for the bellowed mentioned months.

Months Taxable Sales Rs.

April 2014 to January 2015 4,00,000

February 2015 4,00,000

March 2015 4,00,000

3. Miss Shaifali, a registered dealer, furnishes you the following information regarding her turnover of purchases and

sales for May 2014.

(1)Local purchases- Rs. 10, 00,000.

(2)Purchases from Gujarat @2%-Rs. 3, 00,000.

(3)Purchases from Bihar @ 2%-Rs. 1 00,000.

(4)

Sales of goods- Rs. 9, 00,000.Calculate tax payable under MVAT Act, 2002.


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4. Mr. Harnamsingh, a registered dealer, furnishes you the information regarding his purchases and sales of goods.

Find out the liability of MVAT for the below mentioned months.

Month

Within States

Purchases

Rs.

Sales

Rs.

January 2015 3,00,000 7,00,000February 2015 4,00,000 5,00,000

March 2015 5,00,000 4,00,000

5. Mr. Nagesh a registered dealer gives you the information of sales as detailed below:

Period

Schedule

A B C

Rs. Rs. Rs.

June 2014 1,00,000 1,00,000 80,000

July 2014 1,10,000 50,000 20,000

August 2014 60,000 20,000 50,000

September 2014 2,00,000 60,000 1,80,000

Details of sale outside Maharashtra are as follows:

Particulars Rs.

June 2014 1,00,000July 2014 80,000August 2014 10,000September 2014 2,00,000

Ascertain the sales tax liability of Nagesh under the MAVT Act, 2002.(Assume there is no set off claim)

6. Mr. Raj a registered dealer under Maharashtra Value Added Tax Act, 2002, furnished you the following details.

Calculate the amount of set off/tax payable.

Particulars Rs.

(a)Raw Materials Declared Goods (Schedule C) 2,00,000(b)Machinery (Schedule E) 3,00,000

(c)Other (Schedule D 20%) 30,000

7. A dealer requests you to compute his tax liability under MAVT Act, 2002 for March 2015from the following

information.

Particulars Rs.

Sales (Tax rate 20% as per schedule D) 35,000Sales out of Maharashtra including CST 2% 36,000Sales (Schedule C) 72,000

Labour Charges 1,10,000Schedule A goods 6,32,000

Total 8,85,000Sales return within 6 months of Schedule D goods having tax rate 20% 5,000

8. M/S Yogesh and Co. request you to compute liability under MVAT Act, 2002 for the month of January 2015

from the following information. M/S Yogesh & Co. is registered dealer under MVAT Act, 2002.

Particulars Rs.

Sales of Schedule A goods 4,00,000

Sales of Schedule C goods 2,00,000Sales of Schedule E goods 5,00,000Sale out of Maharashtra 10,00,000Labour charges received 4,00,000Less: Sale return (within 6 months) of

Schedule A goods 20,000

Schedule E goods 50,000

9. Compute the sales tax liability as per the provisions of the MVAT Act, 2002 for the month of June, 2014. A

registered dealer, who deals in only Schedule A and Schedule C goods, gives you the following details of sales and

purchases.

Particulars Sales (Rs.) Purchase (Rs.)

(1) Gross Turnover Total 4,00,000 2,50,000(2) Goods falling in Schedule A 2,50,000 1,00,000

(3) Total Sales of Schedule C goods include the Sales OMS of goods having the sales of Rs. 1, 25,000.

10.Veena & Co. asks you to compute their Taxable Turnover & Sales Tax Liability under the MVAT Act, 2002 for

the each month separately from the following information.

Sales:

Month Schedule A Schedule C Schedule EJanuary 2015 12,000 6,000 30,000

February 2015 15,000 34,500 45,000

March 2015 6,000 18,000 30,000

33,000 58,500 1,05,000


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Sales Returns:

Month Schedule A Schedule C Schedule E

January 2015 Nil Nil Nil

February 2015 3,000 3,000 1,500

March 2015 Nil 18,000 3,000

3,000 21,000 4,500

11.M/S Alfa & Co. request you to compute their Tax liability under MVAT Act, 2002, for the month of January

2015from the following information:-

Particulars Rs.

Sales (excluding Sales Tax) of Schedule E goods 2,50,000Sale out of Maharashtra 1,50,000Labour charges received 1,20,000Sales of Schedule C goods 40,000Sales of Schedule A goods 35,000Total 6,20,000

Particular Rs.

Purchase of Schedule A goods 5,00,000Purchase from Gujarat @ 2 % CST 2,00,000

Labour Charges paid 1,00,000

Purchase of Schedule C goods used in manufacturing 50,000

Set Off (b/f) 30,0000

12.AB &Co., a registered dealer requests you to compute the liability of Sales Tax under the MVAT Act, 2002 from

the following information.

Month Sales within the State Sch.DTax

Set off

AvailableSchedule A ScheduleC Schedule E

January 2015 5,00,000 22,00,000 36,00,000 10,000 25,000

February 2015 4,00,000 40,00,000 10,00,000 15,000 40,000

March 2015 2,00,000 6,00,000 7,00,000 5,000 50,000

13.For M/s. AB & Co., compute the amount payable as tax under MVAT Act.

Month

Sales Purchase

Schedule

A

Rs.

Schedule C

Rs.

Schedule

E

Rs.

ScheduleE

Rs.

January 2015 .. ... ... ... .

2,00,000 3,00,000 4,00,000 4,00,000

February 2015 1,00,000 4,00,000 3,00,000 3,00,000

March 2015 2,00,000 4,00,000 1,00,000 2,00,000

14.Mr. Laxman furnishes you the details of purchase and sales.Compute the tax payable under MVAT Act, 2002 if

tax rate is sch. C = 4%, Sch. D = 20% and Sch. E = General.Particular Rs.

Purchases

Schedule C .. . . 2,00,000Schedule E .. . . 3,00,000Schedule D .. . . 3,00,000

Sales

Export Sales .. . . 7,00,000Schedule C .. . . 4,00,000Schedule A .. . . 2,00,000Schedule E .. . . 1,00,000

15.

Mr. Narayan furnishes you with the details about the sales of various goods. Compute the amount of tax payableas per Maharashtra Value Added Tax Act, 2002.The rates of tax are as follows:

Schedule C = 4%, Schedule B = 1% and Schedule D = 20%.

Particulars Rs.

Sales .. . Schedule A .. . 5,00,000Schedule B .. . 4,00,000Schedule C .. . 5,00,000Schedule D .. . 6,00,000Schedule E .. . 4,00,000


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16.Mrs. Smita, a registered dealer gives you the following information in respects of sales of schedule E. You arerequired to find out total amount of Sales Tax for the following periods.

MonthsLocal Sales

Rs.

OMS Sales

Rs.

April 2014 to December 2014 ... . 5,00,000 25,00,000

January 2015 ... . 2,00,000 18,00,000February 2015 ... . 50,000 9,50,000

March 2015 ... . 2,50,000 7,50,000

17.Mr. Jayasurya, a registered dealer gives you the details of sales for the month of Dec.2014 as follows:

Particulars Rs.

1) Sales of Goods covered by Sch. A .. . 4,00,0002) Sales of Goods covered by Sch. B .. . 2,00,000

3) OMS Sales against from C @ 2%CST .. . .. .

1,50,000

4) Sale of Schedule E Goods 1,00,000

Compute the Sales Tax liability for the month of Dec.2014.

18.M/s. Raj & Co. requests you to compute liability under MVAT Act, 2002 for month of February 2015, from the

following information. The firm is a registered dealer under MVAT Act, 2002.

Particulars Rs.

Sale of Schedule A Goods .. . 80,000

Sale of Schedule B Goods .. . .. . .. . .. ... .. ...

.. ...

40,000

Sale of Schedule C Goods 1,00,000

Sale out of Maharashtra

Labour charges received

Sale of Schedule E Goods

Total

2,00,000

80,000

1,20,000

6,20,000

Less : Sales Returns : of Schedule A Goods Schedule E GoodsSchedule C GoodsTotal

.. ... .. ...

.. ...

4,0006,000

10,000

20,000

Sale off available for this month is Rs. 7,300.Sale figure are exclusive of Sale Tax.

19.Sensex Marketing furnishes you the following details about Purchase and Sales.Ascertain the tax payable as per

MVAT Act, 2002.

Particulars Rs.

Purchases

August

September

OctoberSales

May

June

August

.. .

.. .

.. .

.. ...

.. ...

.. ...

3,00,000

4,00,000

5,00,000

6,00,000

5,00,000

4,00,000

All the Goods belong to Schedule C.

20.Following are details of a registered dealer. Calculate the tax payable as per MVAT Act, 2002.

Purchases

Month Schedule Rate of Tax Rs.

May 2015 A Nil 1,00,000

June 2015 C 5% 2,00,000

July 2015 E 12.5% 3,00,000Sales

Month Schedule Rate of Tax Rs.

June 2015 A Nil 2,00,000

July 2015 C 5% 3,00,000

August 2015 E 12.5% 4,00,000

21.Mr. Vinu, a Registered dealer of a product covered under Schedule E sell goods for Rs. 7, 50,000. The Purchaserequired for the product is procured from Registered Dealer within the state as under:

Material X Covered by Schedule C Rs. 2, 00,000.

Material Y Covered by Schedule E Rs. 4, 00,000.Mr. Vinu had an opening balance (Credit) in VAT Credit Receivable Account of Rs. 15,000.

Mr. Vinu had utilized material Y for manufacturing of Tax-free Goods.Calculate the tax payable under MVAT Act, 2002.


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22.A dealer purchases the following Goods in Maharashtra during December, 2015.

ParticularsTotal

Rs.

Input Tax

Rs.

Net Purchases

Rs.

5% VAT Goods ... ... 7,80,000 30,000 7,50,000

12.5% VAT Goods ... ... 15,75,000 1,75,000 14,00,000

Tax- free Goods ... ... 1,50,000 Nil 1,50,000Additional Information:

1. VAT payable on sales made during the month is Rs. 3, 27,500.

2. During December 2015, the dealer utilized 5% VAT Goods costing Rs. 1, 50,000 as input for manufacturing Tax-

free Goods.

3. On 1st December, 2015 there was an opening balance of Rs. 10,000 in VAT Receivable/set off Account.

4. The dealer has received a refund of Rs. 2,500 out of VAT Credit Receivable Account.

Prepare a statement of computation of Tax to be paid under the provisions of MVAT Act, 2002.

23.Calculate the Set off and Tax payable under MVAT Act, 2002from the following details of August 2015 of M/s

Ragnekar Associates.

Particulars Rs.

Local purchases from Registered Dealers .. . 12,00,000Purchases from Unregistered Dealers .. . 2,00,000

Sale price of Goods .. . .. .

20,00,000

Inter State Stock Transfer 4,00,000

The ratio of stock transfer to total sales is 20%. M/s.Ragnekar Associates had an opening balance

(Credit) in VAT credit receivable account of Rs. 12,500.

24.M/s Phutane & Co. furnishes the following data.

You are required to compute the amount payable as Tax under, MVAT Act, 2002.

Month

Sales Purchases

Sch. A

Rs.

Sch. C

Rs.

Sch. E

Rs.

Sch. E

Rs.

Oct.2015 1,00,000 4,00,000 3,20,000 4,00,000Nov.2015 2,00,000 4,25,000 4,10,000 4,50,000

Dec.2015 2,50,000 6,00,000 2,20,000 5,50, 000

There was an Opening Balance of Rs. 2,500 in the VAT Credit Receivable Account on 1-10-2015.

25.M/S Bansode and Co. is a dealer in Chemicals.From the following information find out its Tax

liability for the month of September 2015 as per the provisions of MVAT Act. 2002.

Particulars Rs.

Sales (Inclusive of Tax)

Schedule C Goods @ 5%

Schedule E Goods @12.5%

Purchases (Inclusive of Tax)Schedule C Goods @ 5%Schedule E Goods @12.5%Schedule B Goods @1%

4,20,000

28,12,500

32,32,500

6,30,000

16,87,500

5,05,000

28,22,500

26.M/S Raje & Co. a Registered dealer under MVAT Act 2002, requests you to compute liability under MVAT Act

2002. For the month of March 2015from the following information.

Sales Rs. Sales Return Rs.

Schedule A Goods 1,00,000 Schedule A Goods 20,000Schedule B Goods 50,000 Schedule E Goods 20,000

Schedule E Goods 2,20,000Sales out of Maharashtra 1,50,000Labour Charges Received 75,000

5,95,000 40,000

Purchases Rs. Purchase Return Rs.

Schedule A Goods 50,000 Schedule E Goods 30,000

Schedule E Goods 3,50,000

4,00,000 30,000

There was an Opening Balance (credit) in VAT Credit Receivable Account of Rs. 12000 Account of

Rs. 12,000 Rates of VAT for Schedule A, B, and E Goods are NIL, 1% and 12.5% respectively.


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27.Shri .Deoshthalee a Registered Dealer under MVAT Act 2002 furnishes you the following details about purchases and

sales for the month of Dec. 2015.Ascertain Tax payable as per MVAT Act, 02.

Sales Rs. Sales Return Rs.

Schedule A Goods 1,80,000 Schedule A Goods 5,000Schedule B Goods 55,000 Schedule B Goods 8,000

Schedule C Goods 1,08,000 Schedule E Goods 6,000Schedule E Goods 2,66,000

Purchases Rs. Purchase Return Rs.

Schedule A Goods 1,20,000 Schedule C Goods 2,000Schedule C Goods 1,62,000 Schedule E Goods 4,000Schedule E Goods 2,04,000

Shri. Deoshthalee has an Opening Balance (Credit) in VAT Credit Receivable Account of Rs.

4,500/-. Rates of Tax for Schedule A, B, C and E Goods are NIL, 1%, 5% and 12.5% respectively.

28.M/s Vaishampayan & Co. provides you the following information regarding sales/purchases for the

month of December 2015.

Particulars Rs.Sales

Schedule E Goods @ 12.5%Schedule C Goods @ 5%

Purchases

Raw Materials Schedule C Goods @ 5%Labour Charges

OMS Purchases

Schedule E components purchased @12.5%Stationery Schedule E Goods @ 12.5%Purchase of Machinery Schedule E @12.5%

20,00,000

4,00,000

24,00,000

6,00,000

1,50,000

2,00,000

8,00,000

25,000

8,00,000

25,75,000

Calculate the MVAT Payable / Refundable for the month of December 2015.

Given that there is a set off C/F from earlier month of Rs. 50,000.

29.From the following information provided by Mohan & Co. You are required to compute their tax liability under the

provisions of MVAT,2002 for the month of December,2015.

(a) Purchases (excluding tax)

Schedule C Goods Rs.2,00,000

Schedule E Goods Rs.3,00,000(b)Sales (excluding tax)

Schedule C Goods Rs.4,00,000Schedule E Goods Rs.10,00,000

Schedule A Goods Rs.5,00,000(c) The dealer, Mohan & Co. utilised Schedule C goods costing Rs.1,50,000(Net of tax) as input for Manufacturing

Schedule A goods.(d)The tax rate for Sch.C goods is 5% , Schedule Agoods is Nil & Schedule E goods is 12.50%.

Mvat Computation 2014-2015

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