The Maharashtra Value Added Tax act was introduced in 2002 and took effect in 2005. Earlier, sales tax was collected under the provisions of the Bombay Sales Act of 1959. The department of sales tax in the government of Maharashtra overseas the collection and management of sales tax. The official website of this department allows dealers to register and pay their taxes online, file returns, refund applications and also lodge their grievances. The State of Maharashtra has a few acts whose provisions are taken into account while collecting these taxes. Such acts include the sales act of 1956 and tax on luxuries act of 1987 among others.
Maharashtra VAT Rates:
Based on the type of goods being sold, they can be classified into 5 categories with each category attracting a certain VAT rate. Goods belonging to schedule A such as manual agricultural equipment and fire and electricity and other basic necessities such as salt are VAT exempt. Jewellery, both original and imitation, precious stones and precious metals fall in schedule B and attract a VAT of 1%, goods in Schedule C attract a VAT of anywhere between 2% to 5% and these goods include automated machinery used in agriculture, paper, drugs etc. Other goods such as foreign alcohol, wine, cigarettes, aerated drinks fall into schedule D and attract a VAT exceeding 20% and those goods that do not fall in any of the aforementioned schedules attract a VAT of 13%. The list of schedules and their commodities can be found on the official website of the commercial tax department of Maharashtra
Maharashtra VAT Registration:
The registration for VAT/TIN falls under the provisions of the Maharashtra Value Added Tax Act of 2002. This act governs all aspects of VAT including filing of returns. Dealers in the state with a sales value exceeding Rs 5 lakh per month are mandatorily required to register themselves for VAT while any dealer who imports any commodity will have to register themselves mandatorily if their sales value exceeds Rs 1 lakh per month. Dealers wishing to conduct business in Maharashtra can also voluntarily register themselves and upon receiving application will be allotted a TIN or tax identification number. This TIN will serve as the Vat registration as well as the CST registration.
Maharashtra VAT Filing:
According to the rules of the Maharashtra Value Added Tax Act, those registered dealers who have a tax liability of Rs 0 lakhs or more the previous year will be required to file their VAT returns on a monthly basis within 21 days of the previous month. If the dealers have a tax liability in the range of Rs 1 lakh to Rs 10 lakh in the previous year, the dealers are required to file their returns on a quarterly basis within 21 days of the end of the quarter and dealers who have a tax liability of less than Rs 1 lakh are required to file their returns on a half yearly basis within 30 days from the end of the half financial year. The date of payment coincides with the date of filing returns.
Frequently Asked Questions:
- How much does voluntary registration of VAT cost?
The registration for VAT when done voluntarily by those dealers wishing to commence commerce in Maharashtra will require a security deposit of Rs 5000
- What is the difference between TIN and VAT?
The registration for VAT will result in the commercial tax department providing a TIN or Tax identification number to the dealer. This TIN is not different but in fact the same and acts as the Registration for VAT and CST of the dealer.