Value Added Tax or VAT is a tax on the ‘value added’ to a product or a service. In Manipur, the Value Added Tax Act was implemented in 2003 and is also known as the Manipur Value Added Sales Tax Act, 2003. The act extends to the entire state of Manipur and was introduced to provide for and consolidate the law relating to the levy of value added tax on sales or purchases in the state of Manipur.
Manipur VAT Rates:
The VAT levied on goods in Manipur differs according to the product. VAT is applicable as per different schedules as per the provisions under Schedule 1 and Schedule 2.
Under Schedule 1 the following VAT rates apply
- VAT rate of 1% applies to goods like Bullions, Gold, silver and platinum ornaments, and Precious stones
- VAT rate of 5% applies to more than 160 products or Declared Goods such as edible oils, kerosene oil, utensils, IT Products, chemical fertilizers, Hosiery goods, Ore and minerals, tractors, coconut fibre, bamboo, used cars, tea and many more
- VAT rate of 13.5% applies to all other goods not specified elsewhere
- VAT rate of 20% applies to motor spirit, liquor, petrol and lottery tickets
Under Schedule 2 more than 58 goods and products attract 0% VAT rate or are exempted from VAT. The products include good grains, fresh vegetables, meat, fish, salt, books, handlooms, agricultural implements, textiles, tobacco, sugar and many more.
Manipur VAT Registration:
To register for VAT in Manipur, ever dealer must adhere to the following instructions:
- Every application under section 24 of the Act shall be made in Form 5 to the Tax Authority.
- Every application shall be made, signed and verified in the case of a business carried on by
- An individual
- A firm, by partners thereof
- A Hindu Undivided Family (HUF)
- A body corporate
- An association of individuals
- The person signing and verifying an application for registration shall specify the capacity in which he does so, and shall whenever possible give particulars of the authority vested in him for signing and verifying the application.
- Every person signing and verifying an application for registration shall also furnish with the application two copies of his voter identity card. If the voter identity card is not available, two recent passport sized photographs should be provided.
- The photographs should be signed before the Tax Authority when he is called upon to do so.
- Every dealer shall also furnish a certificate of residential address in the state.
Manipur VAT Forms:
The Manipur Value Added Tax Act of 2003 details close to thirty different forms that are required to register for VAT in Manipur. While each form pertains to a certain requirement, some of the ones that have the most importance are:
- Form 5 - Application for compulsory/voluntary registration
- Form 6 - Certificate of registration
- Form 24 - Tax invoice
- Form 27 - Declaration for importing taxable goods into Manipur
- Form 28 - Declaration for dispatching taxable goods outside Manipur
- Form 30 - Tax clearance certificate
The forms are required to be printed and obtained under the authority of the Commissioner or the appropriate assessing authority, after payment of the specified charges as outlined by the Commissioner.
Manipur VAT Return e-Filing and Payment:
E-filing of VAT returns as well as payments can be carried out online at the official website of the Department of Taxes, Manipur. Through this website, individuals will have to register themselves and enter their application details as well as upload scanned copies of the necessary documents and photographs, which are to be submitted with the application forms. Following this, the system will generate the ACK Slip with a unique reference number. Payment of the registration fee can be done online as well through the e-payment mode. Payments can be made using the net banking facility.
Frequently Asked Questions:
- What is VAT rate levied on in Manipur?
The applicable VAT rate is generally levied on the taxable turnover of the dealer. The VAT payable by a dealer in Manipur is levied at a rate not below the floor rate as specified in Schedule 1 and is subject to conditions imposed by the government from time to time. The VAT however shall not exceed 50% of the dealer’s taxable turnover of sales.
- Is there a provision for voluntary registration?
Yes. Dealers who intend to commence or who have commenced a business may apply for voluntary registration
- What is the time period within which a dealer is required to get himself registered?
A dealer is required to get himself registered within two months from the date he becomes liable to pay tax under the VAT Act.
- Which are the authorized accounts for e-Payment?
Presently, State Bank of India (SBI) has been authorized to facilitate e-Payment of tax and only an SBI account holder can use this facility.