Mizoram VAT / Commercial Tax

The Mizoram Value Added Tax, 2005 was introduced to provide for the levy of value added tax on sales or purchases of goods in the State of Mizoram.Value Added Tax or VAT is a tax on the ‘value added’ to a product or a service and the Act was implemented throughout the state of Mizoram on April 1st 2005.

Mizoram VAT / Commercial Tax Rates:

The VAT levied on goods and products in Mizoram varies from commodity to commodity. VAT is applicable as per different schedules and as per the provisions under Schedule 1, Schedule 2(A), Schedule 2(B), Schedule 2(C), Schedule 2(D), Schedule 2(E), Schedule 3 and Schedule 3(A).

Schedule 1:

Under this schedule more than 56 goods and products attract 0% VAT rate or are exempted from VAT. These products include manually operated agricultural implements, paper and newsprint, life saving drugs, renewable energy materials, kerosene, fresh vegetables and fruits, textiles etc

Schedule 2(A):

Under this schedule the following commodities are exempt from tax

• Goods exported to other countries.
• Goods sold from Domestic Tariff Area (DTA) to Special Economic Zones (SEZ) and Export Oriented Units(EOU)
• Goods exported by Export Oriented Units (EOU)
• Goods sold between SEZ and EOU.

Schedule 2(B):

Under this schedule a VAT rate of 1% applies to articles of gold and silver, bullion, precious stones and platinum.

Schedule 2(C):

Under this schedule a VAT rate of 5% applies to more than 115 products such as intangible goods like copyrights, patents etc, communications equipment, non-manually operated agricultural implements, bulk drugs, sports goods, kitchen ware, hospital equipment etc

Schedule 2(D):

Under this schedule a VAT rate of 13.5% applies to over 159 goods such as advertising hoardings, aeroplanes and other aircrafts, arms and ammunition, cosmetics, electronic goods, tobacco products etc

Schedule 2(E):

Under this schedule VAT rates range from 4% to 12.5% and are charged on goods sold by the Canteen Store Department (CSD) run by the army stationed in the state of Mizoram.

Schedule 3:

Under this schedule all kinds of Works Contracts will attract a VAT rate of 13.5%

Schedule 3(A):

Under this schedule certain types of Works Contracts such as plant and machinery installation, building construction, programming of computer software, construction of motor vehicles etc shall attract a VAT rate of 30%

Mizoram VAT / Commercial Tax Registration:

To register for VAT in Mizoram, individuals and dealers can register with the Mizoram Taxation Department or visit the official website of the Mizoram Taxation Department and register via the e-registration service. Using this web-site the dealers can request for the registration under VAT Act. Here, the dealer will be requested to enter the Application details online and attach/upload the scanned copies of documents/photos need to be attached with the application form. Once these details are submitted the system will generate an ACK Slip with a unique number for future reference. The dealer can then check the status of his application through the system. Once the request is approved, the dealer will be sent the copy of the VAT Certificate through post.

Mizoram VAT / Commercial Tax Forms:

The Mizoram Value Added Tax Act of 2005 details up to 17 forms that are required for registration and for exemption of VAT in Mizoram. While each form fulfills a particular requirement some of the important ones are:

• Form 1 - Application for new registration
• Form 2 - Certificate of registration
• Form 5 - Return Form
• Form 41 - Tax invoice

For VAT exemption, the following forms are required:

• Form A - Application for grant of eligibility certificate
• Form C - Application for grant of Certificate Of Authorisation
• Form G - Annual return of VAT exemption claimed/received

These forms can be downloaded from Government of Mizoram website.

Mizoram VAT / Commercial Tax Return e-Filing and Payment:

E-filing of VAT returns and payments can be done online at the official website of the Mizoram Taxation Department through the E-Return and E-Payment modules.

To file E-Returns the dealer has to follow the following instructions:

• Go to the official website of the Mizoram Taxation Department
• In the online e-services section, choose the ‘Dealer’s Log-in’ option
• Go to the ‘Returns Entry’ section
• Enter and specify the return details
• After entering the required details, proceed to e-payments

To make payments the dealer has to follow the following instructions:

• Log-in to the official website of the Mizoram Taxation Department
• In the online e-services section, choose the ‘Make e-payment’ option
• Click the ‘VAT - Value Added Tax’ option for payment of tax
• Enter the respective TIN number
• Select payment type
• Enter the tax amount, interest, penalty etc and mobile number
• Click on ‘submit’ to generate the e-payment reference number

FAQs:

1. On what basis is VAT in Mizoram charged tp a dealer?

   The tax payable by a dealer under the Mizoram Value Added Tax, 2005 shall be levied on his or her taxable turnover of sales based on the rates as specified in Schedule 2 and subject to government conditions.

2. How is the net Value Added Tax payable calculated?

   The net tax payable by a registered dealer for a tax dealer is the difference between the Output Tax plus Purchase Tax and the Input Tax

3. What is the time period within which a dealer is required to get himself registered?

   A dealer shall be allowed two months time from the date from which he is first liable to pay VAT, to get himself registered.

4. What happens in the event of the death of a dealer?

   In the event of a dealer’s death, his legal representative shall be liable to pay VAT as per the law.