What is MVAT tax?

What is MVAT tax?

VAT is a tax that is levied on services and goods and is paid to the government by producers although the actual tax is levied from the end-user or consumers who purchase the services and goods. Various types of taxes are applicable at various stages of the sale of goods and services; VAT is one such tax.

What is J1 and J2 under MVAT?

J1- is For Local Taxable sale to Tin Holders. J2- is For Local Taxable Purchase Details.

How the refunds of any period can be adjusted under MVAT act?

Refunds of any period can be adjusted in the return/s for subsequent or any other period/s within the same financial year. As per earlier provisions of MVAT Act, refund could not be adjusted against liability of the subsequent year; i.e., excess credit was not allowed to be carried forward to the next financial year.

Who is liable for VAT?

VAT has two components, viz. Output VAT: It is charged to the customer on the taxable sales made by the dealer. Here, the dealer or seller can be either the manufacturer, wholesaler, or the retailer registered under VAT.

What is cascading tax effect?

Meaning of cascading effect of tax Cascading effect is when there is a tax on tax levied on a product at every step of the sale. The tax is levied on a value that includes tax paid by the previous buyer, thus, making the end consumer pay “tax on already paid tax”.

What is J2 in VAT?

Description of the annexures:- Annexure J2:- In this annxure the dealer will be required to fill in the dealer-wise information of purchases.

How do I know if J1 is J2?

Annexure J1 and J2 of Form e-VAT 704 (Maharashtra)

1. Go to Gateway of Tally > Display > Statutory Reports > VAT > Select any forms ( Form 231 , Form 233 , Form III E ) > Annexure-J1 .
2. Select Annexure Ready and press Enter .
3. Select Annexure J1 and press Enter .
4. Click P : Print Annexure .
5. Press Enter to print.

How can I claim my refund through MVAT?

You can claim a refund on the VAT return itself by completing Box 23 except in the case of appellate orders. In this case the tax department will issue a Form within 15 days of receipt of the appellate order. You have to confirm the claim on the same Form within 15 days of receipt of the Form.

What is MVAT act?

Maharashtra Value Added Tax Act. INTRODUCTION. The system of Value Added Tax (VAT) has been implemented, in the State of Maharashtra, w.e.f. 1st April, 2005. INCIDENCE AND LEVY OF TAX. As per the provisions of MVAT, a dealer is liable to pay tax on the basis of turnover of sales within the State.

What is exempted turnover under VAT?

Businesses with a turnover of less than Rs 10 lakh may now be exempt from VAT. If implemented, the new threshold limit will remove various small businesses from the VAT net. It will also neutralise the residual political opposition to VAT from states like Uttar Pradesh and Tamil Nadu.

Who pays VAT tax buyer or seller?

The seller charges VAT to the buyer, and the seller pays this VAT to the government. If, however, the purchasers are not the end users, but the goods or services purchased are costs to their business, the tax they have paid for such purchases can be deducted from the tax they charge to their customers.

Which is required to be filed in MVAT form?

The Dealer has mandatory to filed the all necessaries details such as MVAT R.C No., CST R.C No., Name of Dealer, return type i.e. original or revised, Return Forms, Financial Year, return Period etc. But for the selecting return forms to be filed, there are only following combination of return types are permissible:- a) Form 231 and Form 234.

When do dealers have to register with MVAT?

Every dealer, who becomes liable to pay tax under the provisions of MVAT, shall apply electronically for registration to the prescribed authority, in Form 101, within 30 days from the date of such liability. Turnover limits for the purpose of Liability/Registration [Sec. 3(4)] Category of dealer Total turnover of sales

Who is liable to pay tax under MVAT Act?

The dealers, holding a valid registration certificate under the earlier laws, whose turnover of either of sales or purchases exceeds the specified limits during the financial year 2004-05, shall be deemed to be registered dealer under MVAT Act and shall, therefore be liable to pay tax w.e.f. 1st April, 2005.

Which is the VAT return form in Maharashtra?

Form 231 is the monthly VAT return filed by registered dealers in Maharashtra. You can generate this return form along with supporting annexures in Tally.ERP 9. Further, to help you verify the tax details before generating the returns, a report is available to display the tax computation for the return period.