vat is a modern and progressive form if sales tax
TRANSCRIPT
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
1/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
Vat is a modern and progressive orm i sa!es ta".it is #$arged and #o!!e#ted %& dea!erson pri#e paid %& t$e #'stomer . Vat paid %& dea!ers on t$eir p'r#$ases is 's'a!!&avai!a%!e or set(o) against Vat #o!!e#ted on sa!es.Advantages of Vat
A* It is simp!e+ progressive and transparent.B* Remar,a%!e rise in ta" reven'e or t$e government.C* Red'#tion in n'm%er o ta" rates.D* -niorm rates o Vat a!! over t$e e#onom&.E* It $as 'ni'e s&stem o giving ta" #redits or set(o) /$i#$ is riend!& or a ta"
pa&er.It $e!ps %etter ta" #omp!ian#e %& t$e dea!ers.0* No 1ta" on ta"2 or do'%!e ta"ation.3* More re!ian#e on se! assessment and vo!'ntar& #omp!ian#e %& dea!ers.4* T$e rate o VAT on e"port is 5ero and &et #redit is given on ta" paid on inp'ts.T$is
/i!! en#o'rage e"port promotion and /i!! improve t$e %a!an#e o pa&ments o t$e#o'ntr&.VAT app!ies to a!! t&pes o %'siness in#!'ding 6
a* Importers %* man'a#t'ring #* Distri%'tors d* 7$o!esa!erse* Retai!ers * /or,s #ontra#tors.
How is VAT charged?A!! registered dea!ers m'st #$arge VAT on t$eir sa!e o ta"a%!e goods and #o!!e#t itrom #'stomers.T$e& m'st iss'e a ta" invoi#e to ot$er registered dea!ers s$o/ingt$e VAT amo'nt %eing #$arged as a separate amo'nt.Registered dea!ers /$o pa& VAT on t$eir p'r#$ases #!aim a 1set(o)28or deduction9or t$e VAT paid to t$eir s'pp!iers.Dea!er m'st see t$at t$e ta" is #$argedseparate!& in t$eir p'r#$ase invoi#e to #!aim set(o).Rate of VAT :-T$e& #an %e #!assi:ed into o'r #ategories+ 'nder ea#$ o /$i#$ adi)erent rate is des#ri%e(1. As man& as ;< items are e"empt rom VAT.T$ese are nat'ra! and 'npro#essed
prod'#ts in t$e 'norgani5ed se#tor and t$e& $ave so#ia!imp!i#ations+e.g.oodgrains+p'!ses+mi!,+vegeta%!es+ %oo,s et#.
2. Spe#ia! rate o => VAT is app!i#a%!e to go!d+si!ver+ornaments+pre#io's meta!s andstones.
3. Rate o ;> VAT is app!i#a%!e to a%o't ?@ items.T$e& are items o %asi#ne#essities s'#$ as dr'gs and medi#ines.a!! agri#'!t're and ind'stria!inp'ts+#apita! goods and de#!ared goods.
4. T$e genera! rate o =?.> VAT is app!i#a%!e to a!! t$e remaining #ommodities.T$e on!& e"#eption to t$ese rates is or t$e sa!e o motor spirits8i.e.petro!+diese!et#.9/$i#$ $ave spe#ia! rates %ased on t$e e"isting BOM%a& sa!es o Motor Spirit
Ta"ation A#t+=+ s'%e#t to a Foor rate o ?>.
?> or !i'or
et o!"#n$ut Ta% creditG( Inp't ta" #redit means set o) or ded'#tion o inp't ta"%& a registered dea!er against t$e amo'nt o $is o'tp't ta".&g.
'ateria(u$$(ier SH =VAT
)
Man'a#t'rerSH =VAT =>J=
)
*ho(esa(er SH =VAT =>J=
)
Retai(erSH ?VAT =>J?
=
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
2/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
=>J= B't VATpa&a%!e=(=J
B't VAT pa&a%!e=(= JK
B-T VAT pa&a%!e?(= J?
#nco+e Ta% VAT=. It is a dire#t ta"?. It is #ontro!!ed %& Centra! 3overnmentK. It arises on re#eipt or a##r'a! o
in#ome.;. It is #$arged on in#ome arising in India
or even o'tside India.. It is !evied on a person.
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
3/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
i* C'stoms department o t$e 3overnment o Indiaii* Departments o -nion 3overnment and State 3overnment.iii* In#orporated or 'nin#orporated so#ieties+ #!'%s et#.iv* Ins'ran#e and :nan#ia! #orporations+ Ban,s et#
v* Lo#a! a't$oritiesvi* Ma$aras$tra state Road Transport #orporationvii* Hort Tr'st.viii* H'%!i# C$arita%!e Tr'stsi"* S$ipping and #onstr'#tion #ompanies+ air!ines+ advertisement agen#ies+
air transport #ompanies."* An& ot$er #orporation+ #ompan&+ %od& or a't$orit& 'nder t$e #ontro! o
t$e 3overnment or !o#a! a't$orit&.&%ce$tions :i* An agri#'!t're /$o se!!s agri#'!t're prod'#e gro/n on !and #'!tivated
%& $im.ii* An ed'#ationa! instit'tion #arr&ing on t$e a#tivit& o %'&ing and se!!ing
goods.in t$e perorman#e o its 'n#tions.iii* A transporter $o!ding permit or transport ve$i#!es i.e. $irer.
K* #+$orter ec.2/130: Importer means a dea!er /$o %rings an& goods into t$e state rom an& p!a#eo'tside t$e state. On!& a dea!er #an %e an importer. 4e ma& %ring goods inMa$aras$tra %& /a& o p'r#$ase or ot$er/ise. T$e& ma& %e %ro'g$t %& an& Meansi.e. %& road+ rai!+ aerop!ane+ #o'rier+ post et#.
;* 'anufacture ec.2/10: Man'a#t're in#!'des prod'#ing+ ma,ing+ e"tra#ting+ a!tering+ ornamenting+:nis$ing or ot$er/ise pro#essing+ treating or adapting an& goods.
Man'a#t're imp!ies a #$ange %'t ever& #$ange is not man'a#t're. T$e pro#essm'st %e s'#$ t$at t$e :na! goods are #ommer#ia!!& di)erent rom t$e origina!goods.
T$e o!!o/ing tests #an %e app!ied+ as !aid do/n %& vario's #o'rts 6A9 t$ere s$o'!d %e some pro#ess on goods.B9 S'#$ pro#ess ma& %e #arried o't %& t$e dea!er or an& t$ird person $ired %& t$edea!er.C9 S'#$ pro#ess m'st %ring a%o't #$anges in t$e s'%stan#e o t$e origina! goods.D9 T$e C$anges m'st res'!t ito a #ommer#ia!!& ne/ nad di)erent arti#!e.r.
o
A#tivit& Is it
man'a#t'r
e
Reason
=.
?.
K.
;.
Assem%!& o C!e or T.V.
Ho!is$ing o 0'rnit'rego!d
ornaments.
Repairingre#onditioning o
ma#$ine
C'tting stee! s$eets into
sma!!er s$eets.
YES
NO
No
NO
A ne/ prod'#t /it$ di)erent
No ne/ prod'#t #omes into
e"isten#e
No ne/ prod'#t #omes into
e"isten#e
K
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
4/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
.
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
5/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
T$is de:nition $e!ps to :" t$e !ia%i!it& 'nder t$e A#t %e#a'se t$e ta" is#$arged on on!& t$ose a#tivities /$i#$ are #overed %& t$e de:nition o sa!e.On!& a sa!e /it$in Ma$aras$tra is ta"a%!e 'nder t$e A#t.
7o((owing are not sa(e as $er court decisions
A9 %ran#$ transer %9 se! #ons'mption #9 ree rep!a#ement d'ring /arrant&periodD9 distri%'tion as ree samp!es.tate whether fo((owing transactions are with reason a*
%*
#*
d*
e*
*
g*
$*
Transer o goods rom 4O to
%ran#$
H!edge o goods
3it given to #$arita%!e instit'tion
Sa!e o #ar
Sa!e o s#rap
Sa!e on $ire p'r#$ase %asis
Servi#e #$arges re#eivedE"#$ange o mo%i!e set
NO
NO
NO
YE
S
YE
S
YES
NO
YE
S
No transer o o/ners$ip
E"#!'ded in de:nition
No #onsideration
Transer o o/ners$ip or
#onsideration.
Transer o o/ners$ip or
#onsideration.
Spe#i:#a!!& in#!'ded.No goods invo!ved.
3oods given or #onsideration.
@9 a(e 8rice sec.2/20 : Sa!e pri#e means t$e amo'nt o #onsideration paid or pa&a%!e to a dea!er or an&sa!e made. In#!'ding an& s'm #$arged or an&t$ing done %& t$e se!!er in respe#t ot$e goods at t$e time o or %eore de!iver& o t$e goods.7o((owing $oints are i+$ortant-
=. T$e amo'nt o d'ties !evied on goods 'nder Centra! E"#ise A#t+ =;; or t$e#'stoms A#t. =
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
6/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
Tota( a(e 8rice 9e.g A prod'#t is so!d at Rs.= per 'nit. In a #ase+ ? 'nits are so!d. T$e o#troi isat Rs.? per 'nit and e"#ise is at Rs.= per 'nit. T$e pa#,ing and or/ardinge"penses are Rs.. #a!#'!ate sa!e pri#e.
o+$utation of a(e 8riceConsideration
* O#troi 8? 'nits ?9
* E"#ise 8? 'nits =9
* Re!ated pa#,ing e"penses
Sa!e pri#e
?+
;
?+
??+
MVAT /i!! %e #$arged on t$is sa!e pri#e o Rs.??+.8and not on Rs.?+9
9 8urchase 8rice ec.2/2;0:H'r#$ase pri#e means t$e amo'nt o #onsideration paid or pa&a%!e to a dea!er oran& p'r#$ases made+ in#!'ding an& a'm #$arged or an&t$ing done %& $t ese!!er inrespe#t o t$e goods+ at t$e time o+ or %eore de!iver& o t$e goods.7o((owing $oints are i+$ortant
=. T$e amo'nt o d'ties !evied on goods 'nder #entra! e"#ise A#t.=;; or t$eC'stoms A#t+=
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
7/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
Ever& dea!er+ /$o satis:es t$e #onditions given 'nder t$e A#t+ is !ia%!e to pa& ta"+/it$ e)e#t rom t$e same da&.4is registration is #omp's!ar& rom t$e same da&.0o!!o/ing points are important 6
=. Ever& dea!er+ /$ose tota! t'rnover o sa!e or p'r#$ases e"#eeds r'pees 7ive(ah@or an importer /$ose tota! t'rnover o sa!e or p'r#$ases e"#eedsr'pees one !a,$+ is !ia%!e to pa& ta" /it$ e)e#t rom t$e da&+ in a##ordan#e/it$ t$e provisions o t$is A#t.
?. A dea!er /$o e"#eedt$e re!evant !imits+ %e !ia%!e to pa& ta" 'nder t$isA#t/it$ e)e#t rom t$e =stda& o Apri! o t$e respe#tive &ear. 4o/ever no ta"is pa&a%!e on sa!e rom =; 'pto t$e date on /$i#$ !imit is e"#eeded.
K. 0or t$e p'rpose o t$is se#tion+ t$e !imits o t'rnover are as o!!o/s 6=. Importer Tota! t'rnover o sa!e
e"#eeds Rs.=++
Tota! Ta"a%!e sa!e or Lo#a!
Ta"a%!e p'r#$ase e"#eeds
Rs.=+.?. An& ot$er
person
Tota! T'rnover o sa!e
e"#eeds Rs.++
Tota! Ta"a%!e sa!e or Lo#a!
Ta"a%!e p'r#$ase e"#eeds
Rs.=+
;. A dea!er #+$orter or anB other $erson/$o e"#eeds t$e !imits and'!:!!s %ot$ t$e #onditions
D'ring t$e &ear #ommen#ing rom =stApri!+ is !ia%!e to pa& ta" /it$ e)e#trom t$e date on /$i#$
4e e"#eeds !imits or t$e :rst time. 4e $as to ma,e an app!i#ation to t$eRegistration A't$orit& in
T$e pres#ri%ed orm /it$in K da&s rom t$e date t$e re!evant !imitse"#eeds. A Spe#i:#
Registration No. is a!!otted to $im. 4e /i!! %e ,no/n as 1Registered Dea!er2'nder t$is A#t.. T$e period rom =stApri! to t$e re!evant date on /$i#$ $e e"#eede t$e
spe#i:ed !imit s$a!! %e #a!!ed as+-RD period i.e. period d'ring /$i#$ t$edea!er /as 'nregistered.
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
8/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
K. MVAT G CALC-LTAION O0 TAXLIABLITY
AND SET(O00
Ever& dea!er /$o is !ia%!e to pa& ta" 'nder t$is A#t+ m'st pa& it in a##ordan#e /it$t$e provisions o t$is A#t.0or t$e p'rpose o ta"+ a!! goods are divided in di)erent s#$ed'!es /$i#$ are givenas 'nder(chedu
(e
8articu(ars Rate of Ta%
A Essentia! #ommodities s'#$ as mi!,+ %read+ %oo,s+
potato et#.
NIL
B 3o!d+ Si!ver+ Hear!s+ pre#io's stones =>C De#!ared goods+ ind'stria! inp'ts and ot$er spe#i:#
goods.
;>
D
A9 0oreign !i'or+ Co'ntr& !i'or
B9 Motor Spirit+ petro!+ dise!
?>
Rate
spe#i:edE A!! ot$er goods 8not in S#$. A to D9 =?.>
ertain a(es and $urchase not (iaC(e to Ta% sec.:
Se#tion dea!s /it$ sit'ation /$erein sa!e or p'r#$ase /$i#$ are not !ia%!e orTa". -nder Ma$aras$tra VAT+ ??. T$e& are given as 'nder 6A9 Sa!e or p'r#$ases o'tside t$e state 8's ; o T$e Centra! Sa!es Ta" A#t9B9 in t$e #o'rse o import o goods in india 8's o T$e Centra! Sa!es Ta" A#t9C9 In t$e #o'rse o e"port o goods o'tside India 8's o t$e Centra! Sa!es Ta"A#t9D9 In t$e #o'rse o inter(state trade or #ommer#e.E9 Sa!e o Air(Crat 'e!.
09 Sa!e o goods %& an E"port oriented -nit8EO-9 or %& an 'nit in Spe#ia!E#onomi# 5one8SEU9 or %& an 'nit in E!e#troni# 4ard/are Te#$no!og& Har,s'%e#t to t$e terms and #onditions as ma& %e pres#ri%ed.39 T$e state government ma& provide e"emption rom pa&ment o ta" inrespe#t o an& #!ass or #!asses o sa!e o goods as a spe#ia! in#entive.
o+$osition of Ta% ec.42G
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
9/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
Composition s#$emes are simp!e s#$emes providing simp!e pro#ed're o ta"or t$e %ene:t o sma!! dea!ers. It invo!ves pa&ment o ta" amo'nt in!'mps'm. It is an optiona! s#$eme or #ertain spe#i:# dea!ers.7o((owing c(asses of dea(er can o$t for the sche+e
=. A retai!er?. A dea!er r'nning an eating $o'se+ $ote!+ resta'rant+ or a #aterer /$oserves ood and non 6a!#o$o!i# drin,s
K. A /or,s #ontra#tor8Rate o ta" at >9;. A dea!er o r'nning %a,eries and se#ond $and motor ve$i#!es.. A dea!er invo!ved in t$e e"e#'tion o #onstr'#tion #ontra#t8Rate o ta" at
>990or t$e p'rpose o t$is se#tion+ a retai!er $as %een de:ned as a dea!er i=t$or > o $is t'rnover o sa!e is made to persons /$o are notdea!ers i.e. :na! #ons'mers.
However@ the fo((owing dea(ers cannot o$t for the sche+e ofco+$osition =. A Man'a#t'rer ?. An importerK. A dea!er /$o p'r#$ase an& goods rom E"empt -nits i.e. interstate sa!e
or e"port sa!e or sa!e o'tside t$e state.;. A dea!er dea!ing in !i'or.
et-o! @Refund sec.4:Set(o) means red'#tion o ta" paid on p'r#$ases rom ta" pa&a%!e onsa!e.set(o) is t$e main eat're o VAT. Re'nd means ret'rn o e"#ess ta" paid%& a dea!er.Set(o) or re'nd #an %e #!aimed in respe#t o ta"es paid 'nder ear!ier !a/ andin respe#t or MVAT paid ater =;. It is a!!o/ed on!& to a registered dea!er.
0'rt$er+ s'#$ dea!er m'st %e !ia%!e to pa& ta" 'nder MVAT. Centra! sa!es Ta"8CST9 on p'r#$ases rom o'tside Ma$aras$tra are not e!igi%!e or set(o).
et-o! on or After 1"4"2;;1. Ru(e 2 :On!& a registered dea!er #an #!aim set(o) on p'r#$ases rom registereddea!er on or ater =;?. Set(o) #an %e #!aim o sa!es ta" on(a* H'r#$ases o #apita! assets %* trading goods #*ra/ materia!s and
spare partsd* Ha#,ing materia!s e* 'e!.
Do'%!e set o) s$a!! not %e granted 'nder t$is !a/.
Reduction in et-o! ru(e 3:T$e set(o) avai!a%!e 'nder an& r'!es s$a!! %e red'#ed or disa!!o/ed in part orin '!! 'nder o!!o/ing sit'ations(
=. K> o t$e p'r#$ase pri#e o ta"a%!e goods 'sed as 'e!.?. I t$e dea!er man'a#t're an& ta" ree goods8goods in s#$ed'!e A/it$ Ni!
rate o ta"9+t$en an amo'nt e'a! to ?> o t$e p'r#$ase ri#e o#orresponding ta"a%!e goods p'r#$ased %& $im s$a!! %e red'#ed rom t$eamo'nt o set(o)+ $o/ever+ it is not app!i#a%!e to p'r#$ases o #apita!assets or 'sed as 'e!.
K. ?> o pa#,ing materia! 'sed in resa!e o Ta" ree goods.
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
10/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
;. ?> o sto#, transer o ta"a%!e goods o'tside state+ to its %ran#$ oragent8not %eing a sa!e.9
. => o sto#, transer o s#$.B goods to %ran#$ o'tside t$e state.8Hre#io'smeta!s9 i it is %ran#$ transerred+ t$e dea!er $as to orgo set(o) at => o
p'r#$ase pri#e o go!d 'sed.
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
11/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
F.1 a* 'r. G /$o is a dea!er Importer* $as p'r#$ased d'ring t$e :nan#ia! &earta"a%!e goods /ort$ Rs.K
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
12/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
'onth ,etai(s of 8urchases etc. ,etai(s of sa(es
Ta%
7ree
5oods
Ta%aC(e
5oods
Raw 'ateria( J
'fg. &%$./$rod.0
Ta%
free
5oods
Ta%aC(
e
5oodsApri! to
Nov.?=
De#.=
an.==
0e%.==
Mar#$+==
;+
ut of
'aharashtra
*ithin 'aharashtra
=.;.=
?.;.=
?.;.=
?.;.=
K.;.=
..=
..=
K+
(
(
;+
(
(
K+
(
(
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
13/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
?..=
K=..=
(
(
?+
(
(
;+
F. 'r. Ke(e#ommen#ed $is %'siness on =st0e%r'ar&+ ?=.0ind o't rom /$i#$
mont$ $e /i!! !ia%!e or Registration and to pa& ta" as per t$e provisions o MVATA#t+??. 3ive Reasons o &o'r ans/er.T$e detai!s o $is sa!es Z H'r#$ases are as'nder G
ear J 'onth 8urchases /Koca(0 a(es /Koca(0
Ta%aC(e
5oods Rs.
Ta% 7ree 5oods
Rs.
Ta%aC(e
5oods Rs.
Ta% 7ree
5oods Rs.0e%.+ ?=
Mar.+?=
Apri!.+?=
Ma&.+?=
'ne.+?=
'!&.+?=A'g.+?=
Sept.+?=
+
K+
;+
+
?+
;+;+
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
14/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
A$ri(
'aB
Mune
Mu(B
August
+
;+
K+
CST =++;. Sa!e o s#$ed'!e E goods =++
Comp'te t$e Vat !ia%i!it& or t$e mont$ o De#.+?=F.2 'r. A registered dea!er gives &o' inormation on sa!es as detai!ed %e!o/ G8eriod >.'. Ta%aC(e sa(e /et0'arter ending 'n.+?=
'arter ending sept.+?=
'arter ending De#.+?=
an'ar& ?==
0e%r'ar& ?==
Mar#$ ?==
=K++
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
15/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
S#$ed'!e 1D2 goods ?>
S#$ed'!e 1E2goods
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
16/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
?. Sa!es o s#$ed'!e B goods =++K. Sa!es o s#$ed'!e C goods man'a#t'red* ?=+
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
17/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
;> VAT goods
=?.> Vat 3oods
VAT E"empt 3oods
Tota!
=+;+
++
?++
;+
=++
(
=++
++
?++?=+;+ =+;+ ?++
/C0T$e inp't ta" paid on p'r#$ase o goods is e!igi%!e or VAT #redit set(o)*./c0 Sa!es made %& t$e dea!er d'ring t$e mont$ are as %e!o/GHarti#'!ars 3ross amo'nt O'tp't ta" #o!!e#ted Net sa!e pri#e;> VAT 3oods
=?.> Vat 3oods
VAT e"empt 3oods
Tota!
==+;;+
=+=?+
?++
;;+
=+=?+
(
==++
++
?++?;+
-
7/23/2019 Vat is a Modern and Progressive Form if Sales Tax
18/18
RELIABLE COMMERCE CLASSES T.Y.B.COMINDIRECT TAXES
S#$.ES#$.A S#$.C S#$.E
O#t.?=
Nov.?=
De#.?=
=++
?++
?++
;++
;+?+