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ABC India Limited565, Majestic Circle,xxxxxxxxxxx,Mumbai 400 001 Maharashtra State
VAT Regn Certificate No. W.e.f.CST Regn Certificate No. W.e.f.
Original- Buyer Copy
ABC India Limited565, Majestic Circle,xxxxxxxxxxx,Mumbai 400 001 Maharashtra State
VAT Regn Certificate No. W.e.f.CST Regn Certificate No. W.e.f.
Original- Buyer Copyg y py
Tax InvoiceCustomer Inv.Sl.No.Name & Complete Adress Date
Order No.Date
g y py
Cash Memo / BillCustomer Inv.Sl.No.Name & Complete Adress Date
Order No.Date
VAT/CST Regn Certificate No..of Buyer Payement TermsDate & Time of Delivery
Name & Adress of Transport CompanySl.No. Description of Goods Quantity Rate(Rs.) Value (Rs.)
1 XYZ 200 300 60000
Payement TermsDate & Time of Delivery
Name & Adress of Transport CompanySl.No. Description of Goods Quantity Rate(Rs.) Value (Rs.)
1 XYZ 200 337 67500
Sub Total 60000Qty. Discount 0
Cash Discount 0Other Charges 0
Total 60000VAT 12 50% 7500
Sub Total 67500Qty. Discount 0
Cash Discount 0Other Charges 0Grand Total 67500
VAT 12.50% 7500Grand Total 67500
Declaration"I/We hereby certify that my/our registration certificate under the Maharashtra Value Added Tax Act, 2002 is in force on the date on which the sales of goods specified in this tax invoice is made by me/us and that the transaction of sale
Declaration"I/We hereby certify that my/our registration certificate under the Maharashtra Value Added Tax Act, 2002 is in force on the date on which the sales of goods specified in this tax invoice is made by me/us and that th t ti f l d b thi t i i h b ff t d bspecified in this tax invoice is made by me/us and that the transaction of sale
covered by this tax invoice has been effected by me/us and it shall be accounted for in the turnover of sales while filling of return and the due tax, if any, payable on the sale has been paid or shall be paid”
For ABC (India) Limited
A th i d Si t
the transaction of sale covered by this tax invoice has been effected by me/us and it shall be accounted for in the turnover of sales while filling of return and the due tax, if any, payable on the sale has been paid or shall be paid”
For ABC (India) Limited
A th i d Si tAuthorised Signatory Authorised Signatory
N t t i Bill/ C h M h l fNot necessary to issue Bill/ Cash Memo where value of goods is below Rs. 50/‐ w.e.f 15/08/2007 vide Mah 25 of 2007.Set‐off/ Input Tax Credit can be claimed on the basis of Tax invoice & not Bill/Cash MemoD bit N t & C dit N t b i d & t dDebit Note & Credit Note can be issued & accepted within the 6 months from the date of Purchase/ sale as the case may be as per Sec 2 (32) & (33) r.w. Rule 3t e case ay be as pe Sec (3 ) & (33) u e 3The effect of the Debit/Credit note can be taken only in the period in which appropriate entries are taken in b k f [S 63 (5) & (6)]books of accounts [Sec 63 (5) & (6)]Dealers opted for composition u/s 42 (1) & (2) & (3A) cannot issue Tax Invoicecannot issue Tax Invoice
C.A. Krunal J Davda
Method to Di h VATDischarge VAT
Liability
Composition R l M th d pMethodRegular Method
C.A. Krunal J Davda
Composition MethodSt t G t b tifi ti i th Offi i lState Government, may by a notification in the Official Gazette, provide for a scheme of composition, subject to conditions & restrictions as may be provided thereiny pIn Composition scheme tax is to be paid at a specified rate as may be notified.T i t t d b l i h t th GTax is to computed by applying such rate on the Gross Turnover of Sales or Sales (minus) Purchase as the case, has been notified in the Notification by State Govt.as bee ot ed t e ot cat o by State Go tComposition Scheme for Restaurants & Caterers, Bakers, Retailers & Dealers in Second Hand Vehicles has be
ifi d i N ifi i VAT 1505/CR 105/T i 1 fnotified via Notification VAT 1505/CR‐105/Taxation‐1 of 01‐04‐2005
C.A. Krunal J Davda
Composition MethodD l t f C iti t ti f R i t tiDealers can opt for Composition at time of Registration OR can apply for composition after the registration as the procedure laid down in the Act.pDealers opting for composition scheme , No Input Tax Credit can be claimed except WC under composition.C iti d l t ll t VAT t l fComposition dealer cannot collect VAT separately from the customer i.e. VAT amount shouldn’t be showed separately in the Invoice, except WC under compositionsepa ate y t e o ce, e cept C u de co pos t oIf any Condition as mentioned in the Notification of Composition scheme are violated then the dept. can i hd h i i h & b fiwithdraw the composition scheme & benefits.
C.A. Krunal J Davda
Regular MethodI R l M th d d l h t th VAT li bilitIn Regular Method dealer has compute the VAT liability as follows:a) Calculate the VAT Payable on the commodity sold as ) y y
the Rate applicable to the commodity as mentioned in the Schedules of the MVAT Act, 2002
b) C l l t th I t T C dit bj t t S 48b) Calculate the Input Tax Credit subject to Sec 48 r.w. Rule 52,53,54 & 55
c) VAT Payable will be the difference amount of a & b.c) ayab e be t e d e e ce a ou t o a & bd) VAT payable & ITC should be calculated for the
period as per periodicity to file return
C.A. Krunal J Davda
Periodicity under MVAT Act, 2002• If the VAT Liability of the previous year • If the VAT Liability of the previous year is more than Rs. 10,00,000/‐Monthly
• If the VAT Liability of the previous year • If the VAT Liability of the previous year is more than Rs. 1, 00, 000/‐ but less that Rs 10 00 000/
Quarterlythat Rs. 10,00,000/‐
• If the VAT Liability of the previous year • If the VAT Liability of the previous year is less that Rs 1 00 000/‐Six‐Monthly is less that Rs. 1,00,000/Six‐Monthly
• If the Dealer is newly registered then he• If the Dealer is newly registered then heIf the ealer is newly registered then hehas to file Mandatorily Quarterly Return even if a retailer composition dealer
First Year
C.A. Krunal J DavdaNote: If Excess/Refund in previous year, then multiply all the amounts by 10
E C iti D l ti f iti / 42E C iti D l ti f iti / 42Imp Points for Periodicity
Every Composition Dealer opting for composition u/s 42 Every Composition Dealer opting for composition u/s 42 (1) i.e. retailers composition scheme has to file Six(1) i.e. retailers composition scheme has to file Six‐‐Monthly Return as per Rule 17 but it is subjected to Rule Monthly Return as per Rule 17 but it is subjected to Rule y p jy p j18 & in Rule 18 it is mandatory for newly registered 18 & in Rule 18 it is mandatory for newly registered dealer to files its first year return as Quarterly, therefore dealer to files its first year return as Quarterly, therefore
N l i t d C iti d l h t filN l i t d C iti d l h t fileven Newly registered Composition dealer has to file even Newly registered Composition dealer has to file Quarterly ReturnQuarterly ReturnNotwithstanding any thing contained in any provision of Notwithstanding any thing contained in any provision of ot t sta d g a y t g co ta ed a y p o s o oot t sta d g a y t g co ta ed a y p o s o othe Act for periodicity of the dealer, Dealer has to file the Act for periodicity of the dealer, Dealer has to file the returns as per the periodicity as displayed on the returns as per the periodicity as displayed on M h i [R l 17 (4)( )] ( dd d b G N fM h i [R l 17 (4)( )] ( dd d b G N fMahavat site [Rule 17 (4)(e)] (added by G.N. of Mahavat site [Rule 17 (4)(e)] (added by G.N. of 13/09/2011)13/09/2011)
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Six MonthlySix Monthly
QuarterlyDue Date to make payment is 30 Days
Q y
Due Date to make Monthlyfrom end
of each Six ‐
Month
to make payment is 21 Days from end of each
MonthlyDue Date to make payment is 21 Days
from end of each Monthof each Quarter
from end of each Month
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Form 231
• VAT Dealers other than:
Form 232
• All composition dealers
Form 233
• VAT Dealers who are in • Dealers who have opted for composition part or entire
• Dealers executing
pwhose entire turnover is under composition (excluding works contractors opting for
the business of executing works contract, leasing & dealers opting for• Dealers executing
works contract whether part or entire
• Dealers under PSI
contractors opting for composition & dealers opting for composition only for Part of the activity of the business)
dealers opting for Composition only for part of the activity of the business
dealer holding Entitlement Certificate
• Notified Oil Companies
activity of the business)
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Form 234 Form 235 CST Form III EForm 234
• Dealer who are PSI Units holding
Form 235
• Dealer Notified Oil Companies & also
CST Form III E
• CST Return is to be filed by the dealer g
Entitlement Certificate
Co pa es & a soany other dealer effecting Sales of Motor Spirits has to file Form 235
dealing in interstate Sale & Return to be filed in Form IIIE
• No CST return to befile Form 235 No CST return to be filed if Interstate sale is NIL in the period, as per Trade Circular 38T of 2008 16T of 2008 &of 2008, 16T of 2008 & 52T of 2007
C.A. Krunal J Davda
Quarterly
Six
Q y
M hlSix Monthly Monthly
10 days* from the
d d t fdue date of payment
*Note: 10 days extra time to file online return is only available if payment is made before 21st/ 30th as may be applicable C.A. Krunal J Davda
Interest on Late payment of Tax is 1.25% for each month/part thereofLate fee for filing late return is Rs 5 000/‐ each returnLate fee for filing late return is Rs. 5,000/ each returnAll E‐Payment are to made in MTR‐6Sec 20(4) speaks on Revise Return in different circumstances• Sec 20(4)(a) – Dealer discovers any omission or incorrect statement then such return can be revisedincorrect statement then such return can be revised within a period of 10 months from the end of the year to which such return relates•Sec 20(4)(b) – Dealer has to file return under this sub section when he discovers any omission or incorrect statement after audit of his accounts such returnstatement after audit of his accounts, such return
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should be revised before the expiry of 30 days from the date prescribed for furnishing the said report
•Sec 20 (4)(c) – Dealer has to file revise return under thisSec 20 (4)(c) Dealer has to file revise return under this sub‐section when he agrees with the observation contained in intimation under Sec.63 & such revise return is to be filed within 30 days from the date of service of such intimation
C.A. Krunal J Davda
/Any Person/Dealer cannot revise any return already revised under any of the aforesaid Sections more than once i e REVISE RETURN CAN ONLY BE FILED ONCEonce i.e. REVISE RETURN CAN ONLY BE FILED ONCE UNDER THE AFORESAID SECTION (Proviso Inserted by Mah. 15 of 2011 w.e.f. 01/05/2011)
C.A. Krunal J Davda
Works Contract Taxation (WCT) & TDS thereon
Sec 2(24)(b)(ii) defines Works Contract as the transfer of ( )( )( )property in goods (whether as goods or in some other form) involved in the execution of a works contract i l di t f i t f hincluding, an agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, g, , , p g,fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of
bl i bl tany movable or immovable property
C.A. Krunal J Davda
Works Contract Taxation (WCT) & TDS thereon
There are 2 methods to discharge the Works Contract gliability & they are mentioned herewith:1. Rule 58(1):
( ) A t l D d ti if th t l t f ll(a) Actual Deduction : if the actual amount of all expenses is known to the dealer then WCT can be calculated as shown illustrated on next pagep g(b) Standard Deduction: if the amount of expenses incurred in execution of works contract are not
i t i d i ibl t l l t thmaintained or impossible to calculate then deduction of expenses can be claimed as per the Table mentioned in the Rule 58(1)Table mentioned in the Rule 58(1)
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Computation under R. 58a) Actual Deduction
Particulars AmtParticulars Amt
Sale/Agreement Value/Contract Value XX
L S b C t t V l P id (XX)Less: Sub Contract Value Paid (XX)
Less :Actual Labour Cost, designing, planning, hire charges, Profit related tosupply of labour etc.. Attributable to that contract (XX)
l f i l f d i i f kValue of Material Transferred in Execution of Works contract XX
VAT Applicable on Above` XX
Less: ITC (XX)
Payable XX
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Sr Type of Works Contract Std
b) Standard Deduction u/r 58Sr Type of Works Contract Std
Dedn1 Installation of plant and machinery 15%2 Installation of air conditioners and air coolers. 10 %3 Installation of elevators (lifts) and escalators. 15%3 Installation of elevators (lifts) and escalators. 15%4 Fixing of marble slabs, polished granite stones and tiles (other than
mosaic tiles).25%
5 Civil works like construction of buildings, bridges, roads, etc. 30%
6 Construction of railway coaches on under carriages supplied by Railways 30%6 Construction of railway coaches on under carriages supplied by Railways. 30%
7 Ship and boat building including construction of barges, ferries ,tugs, 20%8 Fixing of sanitary fittings for plumbing, drainage and the like. 15%9 Painting and polishing 20%9 Painting and polishing. 20%10 Construction of bodies of motor vehicles and construction of trucks 20%11 Laying of pipes. 20%12 Tyre re-treading. 40%13 D i d i ti f t til 40%13 Dyeing and printing of textiles. 40%14 Annual Maintenance contracts.(From 1/4/2006) 40%
15 Any other works contract. 25%
C.A. Krunal J Davda
Works Contract Taxation (WCT) & TDS thereon
2. Sec 42(3) : Composition Scheme for Works ( ) pContractor• Dealer can also avail composition scheme to pay
th i VAT Li bilit W k C t ttheir VAT Liability on Works Contract as sum equal to 5% or 8 % as the case may be on entire amount of contract or any portion of individual y pworks contract as may be applicable
• 5% of rate is applicable only for the Notified C t ti C t t & 8 % i thConstruction Contract & 8 % in any other case
• Notified Construction Contract as per Notification 1506/CR 134/Taxation dtd 30‐11‐061506/CR 134/Taxation dtd 30 11 06
C.A. Krunal J Davda
Works Contract Taxation (WCT) & TDS thereon
(1) Buildings, (2) Roads, (3) Runways, (4) Bridges Railway over bridges(4) Bridges, Railway over bridges, (5) Dams, (6) Tunnels, (7) C l(7) Canals, (8) Barrages, (9) Diversions, (10) Rail tracks, (11) Causeways, Subways, Spillways, (12) Water supply schemes(12) Water supply schemes,
C.A. Krunal J Davda
Works Contract Taxation (WCT) & TDS thereon
(13) Sewerage works, (14) Drainage, (15) Swimming pools, (16) Water Purification plants and(16) Water Purification plants and(17) Jetty
A k t t i id t l ill t th•Any works contract incidental or ancillary to the contracts mentioned above, if such work contracts are awarded and executed before the completion of the said contract
C.A. Krunal J Davda
Input Tax CreditInput Tax Credit• ITC will be reduced by 9/25 i.e. by 36% for Works Contractor’s opted for Composition scheme & Retention @ 4% ill b li bl ITC f N ifi d C i4% will be applicable on ITC for Notified Construction Contract.
C.A. Krunal J Davda
Certification under Works ContractLiability to pay VAT is joint & several of Main Contractor & Sub‐contractorIf Main Contractor is paying all the VAT on the ContractIf Main Contractor is paying all the VAT on the Contract Value then he has to issue Form 406 & 409 to the Sub‐Contractor to claim deduction of VATIf the scenario is vice versa then Sub‐Contractor has to issue Form 407 & 408 to Main Contractor to claim the deduction of VATdeduction of VAT
C.A. Krunal J Davda
Works Contract Taxation TDS Sec 31: Deduction of Tax at source:
• WCT TDS provision are applicable any payment made by employer for works contract to themade by employer for works contract to the works contractor then TDS is applicable at rate as may be notified, class of employer & rate ofas may be notified, class of employer & rate of TDS is as per Notification No. JC (HQ) I/VAT/2005/97 dated 29.8.2005 which is herewith reproduced :
C.A. Krunal J Davda
Sr. No. Classes of Employers Rate at which Amount to be deducted
1 The Central Government and any State Government,
2 All Industrial, Commercial or Trading undertakings, Company or Corporation
of the Central Government or of any State Government, whether set up
under any special law or not , and a Port Trust set up under the Major Ports
Act, 1963,
3 A company registered under the Companies Act, 1956,
4 A local authority, including a Municipal Corporation, Municipal Council, Zilla 2% of the amount payable
as above in the case of a
contractor who is a
Parishad, and Cantonment Board,
5 A co‐operative Society excluding a Co‐operative Housing Society registered
under the Maharashtra Co‐operative Societies Act, 1960, registered dealer and 5%
in any other case(w.e.f.
01/05/2012)
6 A registered dealer under the Maharashtra Value Added Tax Act, 2002.
7 An Insurance or Finance Corporation or Company; and any Bank included in
the Second Schedule to the Reserve Bank of India Act, 1934, and anythe Second Schedule to the Reserve Bank of India Act, 1934, and any
scheduled Bank recognized by the Reserve Bank of India.
8 Trusts, whether public or private
9 Co‐operative Hsg. Society if contract more than Rs.10 Lakhsp g y
C.A. Krunal J Davda
Works Contract Taxation TDS • No TDS on sub‐contract• No deduction shall be made where the aggregate amount payable to the dealer duringaggregate amount payable to the dealer during the year is less than Rs. 5 Lacs/10 Lacs( Co‐op Housing Soc)Housing Soc)
• TDS amount should not exceed Tax payable amount
C.A. Krunal J Davda
WC TDS Due Dates & FormAny TDS deducted should be paid into Govt. Treasury by 21st of next month in Challan MTR‐6TDS certificate is to be issued in Form 402 as soon asTDS certificate is to be issued in Form 402 as soon as deduction/payment is doneAnnual Return for WCT TDS is to filed in Form 405 toAnnual Return for WCT TDS is to filed in Form 405 to Joint Comm. (Returns) of Sales Tax for Mumbai Region & with Joint Comm. (VAT Adm) of Sales Tax in rest of the state within 3 months from the end of the yearI t t @ 1 25% i t l i d L t P t fInterest @ 1.25% is to levied on Late Payment for a month/part there of.
C.A. Krunal J Davda
WC TDS Due Dates & FormU i d E l h h d d d TDSUnregistered Employers who have deducted TDS, on payment to the contractors are also required to file in challan MTR 6 alongwith DD/Pay Order in favor of SBIchallan MTR 6 alongwith DD/Pay Order in favor of SBI A/c MVAT & with PAN Card before the Deputy Comm. Of Sales (E‐810),Business Audit (2), Vikrikar Bhavan, ( ), ( ), ,Mazgaon for region & Sales Tax Officer, Return Branch for rest of Maharashtra
C.A. Krunal J Davda
C‐Form• It is Issued by the RD purchaser in one state to the
RD seller in another state so that the Sales Tax is applicable at concessional rate i.e. 2% (variable as notified by the law)notified by the law)
• C Form is issued by the purchaser on Quarterly BasisAs per Sec 8(3) of CST Act, Purchase against C From p ( ) , gcan only be made if –
o Goods are for resaleG d d i M f t i f lo Goods are used in Manufacture or processing for sale
o Goods used for Mining
C.A. Krunal J Davda
o Goods used in Power Generation/ Distributiono Goods used in Telecom Industries
G d C t i & ki M t i lo Goods are Containers & packing Material
H‐Form• It is Issued by the purchaser when the goods are• It is Issued by the purchaser when the goods are
purchased locally or in interstate without VAT/CST, to export the purchased goods out of India for p p gcomplying with an pre‐existing agreement or order for exportTh b lti t l f t i id d• The above penultimate sale for export is considered as Deemed Export u/s 5(3) of CST Act, 1956
• H Form is issued by the purchaser on Quarterly Basis
C.A. Krunal J Davda
y p Q y
F‐Form• Form‐F is issued when the dealer transfers the stock
to his own place of business/to his agent/principal, not by reason of sale outside the State of Maharashtra to prove that the aforesaid transactionMaharashtra, to prove that the aforesaid transaction was not Sale but a stock transfer & the Seller has to produce F Form issued by the dealer from the State p yGovt. from where the movement of Goods was terminatedF F i t b i d d t il f th j b k• F‐Form is to be issued mandatorily for the job work done & goods received back, as per Circular 2T of 2010 dtd 11/01/2010/ /
C.A. Krunal J Davda
• F Form is issued on Monthly Basis• If any Stock Transfer/ Branch Transfer is occasioned
b f i ti k t t/ dbecause of any pre‐existing works contract/order then the Stock Transfer/Branch Transfer may be treated as Interstate Saletreated as Interstate Sale
E1 & E 2 ‐ Form• Form EI & EII are to be issued by the seller of goods y g
who sell the goods on basis of Transfer Documents of Title to Goods i.e. Sale in TransitE I E II F i d Q t l B i• E‐I, E‐II Forms are issued on Quarterly Basis
• EI EII transaction is completed when delivery is taken but before delivery, an dealer can sale the good iny, g
C.A. Krunal J Davda
transit as many times the dealer wants to documentsbut once delivery is taken transaction is completed & it i d d I t t t l & i t bl dit is covered under Interstate sale & is taxable under CST Act.
I t St t S lSelling Buying
E I E II F CIs Taxable
Inter‐State Saleg
Dealer y g
PersonE‐I or E‐II Form C
under CST Act
First SaleA of
DehradunB of
BombayA will submit
E‐I to BA will obtain Form C from B YesFirst Sale Dehradun Bombay E I to B Form C from B Yes
Second Sale (During the movement)
B of Bombay
K of Kochin
B will submit E‐II to K
B will obtain Form C from K No
K sell after Taking the Delivery
K of Kochin
H of Hyderaba
dK will obtain Form C from H Yes
C.A. Krunal J Davda
Every application for declaration under CST Act is to be made onlinePlace of Business of Purchaser to determine jurisdiction for application of Declarationfor application of DeclarationCheck whether Commodity purchased is mentioned in CST Certificate of PurchaserCST Tin & Name of the SellerAfter Receiving H Form from the Exporter, check whether Purchase Order Date & Purchase Order Nowhether Purchase Order Date & Purchase Order No (both Foreign Buyer to Exporter & Exporter to Dealer) is properly filled in the H Form & fill the mentionedp p y
C.A. Krunal J Davda
particulars while issuing the H Form & bill of lading copy to prove that the goods have actually been exportedBefore applying for any declaration under CST Act cross‐check the amount of Interstate Purchase & purchasecheck the amount of Interstate Purchase & purchase against H Form entered/reflected in VAT Return to avoid rejection of application.
C.A. Krunal J Davda
Sec 61: Accounts to be audited in certain casesSec 61: Accounts to be audited in certain casesEvery dealer liable to pay tax shall,‐a) if his turnover of sales or as the case may be ofa) if his turnover of sales or, as the case may be, of
purchases exceeds rupees sixty lakh in any yearb) If a dealer is holding licence in –
i. Form P.L.L. under the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules 1966 orRules,1966,or
ii. Form B‐RL under the Maharashtra Manufacture of Beer and Wine Rules, 1966,
iii.Form E under the Special Permits and Licence Rules, 1952, or
C.A. Krunal J Davda
d h biv. Forms FL‐I, FL‐II, FL‐III, FL‐IV under the Bombay Foreign Liqour rules, 1953,or
v. Forms CL‐I, CL‐II, CL‐III, CL/FL/TOD‐III under thev. Forms CL I, CL II, CL III, CL/FL/TOD III under the Maharashtra Country Liquor Rules, 1973 Form B‐RL under the Maharashtra Manufacture of Beer and Wine Rules, 1966,
c) If he holds an Entitlement Certificate in respect of any Package Scheme of Incentives granted underany Package Scheme of Incentives, granted under this Act.
Every dealer mentioned above has to get their accounts audited within the time specified or else an penalty amounting to one tenth per cent (1/10th %) of the total sale will leviedsale will levied.
C.A. Krunal J Davda