Professional Documents
Culture Documents
INDEX
1. Introduction 2
2. Concept of MVAT 4
3. Definitions 6
4. Registration 22
5. Explaination on Registration 28
6. Illustrations on Registration 31
7. Newspaper analysis 34
8. Bibliography 36
1
INTRODUCTION
The lesson deals with the provisions of Maharashtra Value Added Tax Act, 2002 (MVAT). All
the sections and provisions referred to will be the sections and provisions of MVAT, unless
The lesson aims to take up the basic concept of VAT, the process, and the administration of the
MVAT regime.
1. The system of Value Added Tax (VAT) has been implemented, in the State of Maharashtra,
ii. The Maharashtra Sales Tax on the Transfer of Property in goods involved in the
iii. The Maharashtra Sales Tax on the Transfer of the Right to use any goods for any Purpose
3. Thus all transactions of purchase and sales of goods, within the State of Maharashtra, which
used to be covered under the above Acts, till 31st March 2005, will now be governed by the
2
Maharashtra Value Added Tax Act, 2002, (MVAT), as amended by Maharashtra Value
4. There will be only one tax; i.e., VAT no separate Purchase Tax, Turnover Tax, Resale Tax,
5. No Concessional Forms such as Form 14, 14A, 14B, 13A and BC Form etc., which used to
6. No Resales: All transactions of sales of goods, as well as deemed sale of goods such as
Works Contracts, Leases etc., by a dealer, within the State of Maharashtra, are liable to tax
under MVAT.
7. Immediate Input Tax Credit, in the month/quarter in which the eligible goods purchased.
8. Composition Schemes for Retailers, Hoteliers, Caterers, Bakers, 2nd Hand Motor Vehicle
9. CST will continue for the time being. Thus all transactions of Inter-State Sales, Export,
Import, Deemed Export, High Seas sales, Inter-State Branch/Consignment Transfers, Sales in
Transit etc. will continue to be governed by the provisions of CST Act. All forms, prescribed
under the CST Act, such as Form C, D, E-I, E-II, F and H will continue as it is. The
transactions covered by CST Act will remain outside the purview of MVAT.
10. Tax payable by a Dealer: VAT = Tax on Sales- Input Tax Credit- Credit b/f
3
CONCEPT OF VAT
The Maharashtra Value Added Tax Act, 2002 (MVAT) replaces Bombay Sales tax Act, 1959,
which was enacted to collect tax on sales. MVAT contains the word Value Added in its title
but it continues to levy tax on sales. It neither defines the value addition is nor VAT.
Under MVAT, the concept of collection of sales tax underwent a change. Now the sales tax is a
multi -point tax collected at every point of the value addition chain, wherever the goods travels
from manufacturer, distributor, stockist, and wholesaler till the goods reach the ultimate
consumer unlike the old sales tax, which, was barring a few exceptions, a single point tax levied
Following the scheme adopted under the excise laws, most states have adopted a uniform
VAT regime prescribing only 5 rates of tax; 0%( tax free goods), 1 %, 4% (5% in
Maharashtra), 12.5% and 20%,(25% for liquor) and an inbuilt scheme for allowing set off for
taxes already paid at the earlier stages to avoid duplication of tax or a tax on tax. As a result,
every taxpayer in the value addition chain will pay tax only on the value added at his level and
no more.
4
This can be explained by the following illustration:
Illustration 1 A dealer has purchased inputs worth Rs. 2,00,000 on which tax was collected at
4%. These inputs were put in a manufacturing process and the output was sold for Rs. 5,00,000
Due to uniformity in tax rates entire country is converted into a big common market with
Self-assessment by dealers,
5
DEFINITIONS: SECTION 2
Business includes:
(c) any adventure or concern in the nature of service, trade, commerce or manufacture;
whether or not the engagement in such service, trade, commerce, manufacture, adventure or
concern is with a motive to make gain or profit and whether or not any gain or profit accrues
(i) the activity of raising of man-made forest or rearing of seedlings or plants shall be
deemed to be business;
6
(ii) any transaction of sale or purchase of capital assets pertaining to such service, trade,
comprised in business;
(iii) sale or purchase of any goods, the price of which would be credited or, as the case may
be, debited to the profit and loss account of the business under the double entry system of
(iv) any transaction in connection with the commencement or closure of business shall be
In order to fix liability under MVAT, definition of business assumes significance. Since the
definition is an inclusive one, it does not take away the normal meaning of business. A
business remains business and is extended to other activities listed in the section namely:
4. Services.
(v) Adventure in the nature of trade, commerce, manufacture and service implying that in
order to constitute business, there need not by any regular or systematic activity. A single
(vii) Sale or purchase of capital assets pertaining to such service, trade, commerce,
7
(viii) Incidental goods such as stationery articles debited or credited in Profit & Loss Account
(x) Neither Profit motive nor actual realisation of profit is necessary to constitute any activity
as business.
purchases the books necessary for the examination and supplies the same to the students.
Solution:
Single transaction by its very nature constitutes business. Any adventure in the nature of trade,
2. DEALER- Section 2(8)Dealer means any person who for the purposes of or
consequential to his engagement in or, in connection with or incidental to or in the course of,
his business buys or sells, goods in the State whether for commission, remuneration or
(a) a factor, broker, commission agent, del-credre agent or any other mercantile agent, by
whatever name called, who for the purposes of or consequential to his engagement in or in
connection with or incidental to or in the course of the business, buys or sells any goods on
8
(b) an auctioneer who sells or auctions goods whether acting as an agent or otherwise or,
who organizes the sale of goods or conducts the auction of goods whether or not he has the
authority to sell the goods belonging to any principal whether disclosed or not and whether
the offer of the intending purchaser is accepted by him or by the principal or a nominee of the
principal;
(c) a non-resident dealer or as the case may be, an agent, residing in the State of a
non-resident dealer, who buys or sells goods in the State for the purposes of or consequential
to his engagement in or in connection with or incidental to or in the course of, the business.
(d) any society, club or other association of persons which buys goods from, or sells goods
Explanation- For the purposes of this clause, each of the following persons, bodies and
entities who sell any goods whether by auction or otherwise, directly or through an agent for
cash, or for deferred payment, or for any other valuable consideration, shall, notwithstanding
anything contained in clause (4) or any other provision of this Act, be deemed to be a dealer,
namely:
(i) Customs Department of the Government of India administering the Customs Act, 1962;
(ii) Departments of Union Government and any Department of any State Government;
(vi)Maharashtra State Road Transport Corporation constituted under the Road Transport
9
(vii) Port Trusts;
(viii) Public Charitable Trusts registered under the Bombay Public Trusts Act, 1950;
(ix)Railway Administration as defined under the Indian Railways Act, 1989 and Konkan
(x) Shipping and construction companies, air transport companies, airlines and advertising
agencies;
(xi)any other corporation, company, body or authority owned or constituted by, or subject to
administrative control, of the Central Government, any State Government or any local
authority:
Exception I.-An agriculturist who sells exclusively agricultural produce grown on land
cultivated by him personally shall not be deemed to be a dealer within the meaning of this
clause.
of goods in the performance of its functions for achieving its objects shall not be deemed to
Exception III.- A transporter holding permit for transport vehicles (including cranes) granted
under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward
shall not be deemed to be a dealer within the meaning of this clause in respect of sale or
10
From the above definition of dealer, which is very comprehensive in nature and covers a
large number of bodies in its scope including Public charitable trusts, following features
emerge out :
Maharashtra.
iii. Auctioneers,
v. Customs Department of The Government of India administering The Customs Act, 1962;
11
xii. Public Charitable Trusts
xiii.Railway Administration
xiv. Shipping and Construction Companies, Air Transport Companies, Airlines and
Advertising Agencies;
xv. Any Other Corporation, Company, Body Or Authority Owned or Constituted by, or
Subject to administrative control, of the Central Government, any State Government or any
Local Authority.
goods means very kind of moveable property not being newspapers, actionable claims,
money, stocks, shares, securities or lottery tickets and includes live stocks, growing crop,
grass and trees and plants including the produce thereof including property in such goods
attached to or forming part of the land which are agreed to be severed before sale or under
The definition is akin to the definition as laid down in the Sale of Goods Act. Following are the
12
Illustration 3: A farmer grows maize in his farm. Whether such crops would be goods and
whether the farmer would be called a dealer as per the provisions of the MVAT Act, 2002.
Solution: Any growing grass or crops are covered under the definition of goods. Hence the
Farmer being an agriculturalist selling exclusively agricultural produce grown on land cultivated
by him personally is covered by the exclusions to the definition of dealer. Hence, the crops are
Importer means a dealer who brings any goods into the State or to whom any goods are
From the above definition, it follows that an Importer is a person engaged in inter-state
a) is a dealer AND
13
Hence a person who is not a dealer will not be an importer even if he brings goods from
Illustration 4: State with reason whether an educational institution, which purchases paper
Illustration 5: State with reason whether farmer who purchases seed from Goa for growing
Manufacture with all its grammatical variations and cognate expressions includes
The definition of manufacture being an inclusive one, it includes not only any process which
amounts to manufacture in a normal commercial sense i.e. some process whereby a new
substance, article or product is produced, but also additional activities listed in the definition
viz.
Producing,
Making
Extracting,
Altering,
Ornamenting,
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Treating or
Purchase price means the amount of valuable consideration paid or payable by a person
for any purchase made including any sum charged for anything done by the seller in respect
of the goods at the time of or before delivery thereof, other than the cost of insurance for
Explanation I. The amount of duties levied or leviable on the goods under the Central
Excise Act, 1944, or the Customs Act, 1962 or the Bombay Prohibition Act, 1949 shall be
deemed to be part of the purchase price of such goods, whether such duties are paid or
Explanation II. Purchase price shall not include tax paid or payable by a person in respect
of such purchase.
Explanation III. Purchase price shall include the amount paid by the purchaser by way of
deposit whether refundable or not which has been paid whether by way of a separate
agreement or not, in connection with or incidental or ancillary to, the said purchase of goods;
Explanation IV.The amount of valuable consideration paid or payable by a dealer for the
purchase of drugs specified in entry 29 of Schedule C shall be the maximum retail price
(whether as goods or in some other form) involved in the execution of a works contract,
purchase price shall be taken to mean, the total consideration for the works contract and for
15
the purpose of levy of tax, purchase price shall be taken to mean, the price as may be
determined in accordance with the rules, by making such deduction from the total
Purchase price means valuable consideration or the price of goods paid by purchaser to
Illustration 6: ABC buys goods worth Rs 10,400 from XYZ of which 4% sales tax has been
Since, Purchase price does not include the taxes paid on the purchases.
16
7. RESALE-Section 2 (22):
ii. or without doing anything to them which amounts to, or results in a manufacture and the
Resale means to sell the goods in the same form, shape, design and character. Alteration in
the shape, character or utility amounts to manufacture but incidental activities like
cutting cloth from a lump, or only melting of ornaments or cutting of steel circles from big
sheet are held not o be manufacture as such process does not change their character or utility.
However, putting a brand name after purchasing the same is considered to be manufacture.
Illustration 7 ABC purchases sewing threads from a job worker, packages the same and sells
Solution Since ABC packages the sewing threads and sells them under their brand name, it is
17
8. SALE Section 2 (24)
Sale as a sale of goods made within the State for cash or deferred payment or other
valuable consideration hut does not include a mortgage, hypothecation, charge or pledge; and
the words sell, buy and purchase, with all their grammatical variations and cognate
(a) a sale within the State includes a sale determined to be inside the State in accordance with
the principles formulated in section 4 of the Central Sales Tax Act, 1956;
(b) (i) the transfer of property in any goods, otherwise than in pursuance of a contract, for
(ii) the transfer of property in goods (whether as goods or in some other form) involved in the
execution of a works contract namely, an agreement for carrying out for cash, deferred
(iv) the transfer of the right to use any goods or any purpose (whether or not for a specified
(v) the supply of goods by any association or body of persons incorporated or not, to a
(vi) the supply, by way of or as part of any service or in any other manner whatsoever, of
goods, being food or any other article for human consumption or any drink (whether or not
18
intoxicating), where such supply or service is made or given for cash, deferred payment or
The definition of sale assumes the following essential components to constitute a sale within
i) contract
iv) under a work contract for repairs, improvement, fabrication, construction, installation of
4. Goods must be sold for valuable consideration i.e. money or moneys worth.
6. Sale within Maharashtra means the sale should not be interstate sale within the meaning of
S. 4 of the Central Tax Act,1956. When the sale occasions movement of goods or transfer of
documents from one state to another, it is inter-state sale. However, if the goods incidentally
cross another state but origin and the destination for delivery of the goods is in Maharashtra,
7. The sale does not include mortgage, hypothecation, charge or pledge of goods.
19
Illustration 8:
Gulbarga in Karnataka.
Station in Gujarat.
g) Sale of building.
Solution:
Karnataka in transit does not make the sale inter-state sale. Hence it is sale under MVAT
20
b) In this case also, movement of goods is within the state of Maharashtra. Incidental passage
through Gujarat in transit does not make the sale inter-state sale. Hence it is sale under
MVAT
i) Food supplied by the club to its members will be sales to the extent of goods used in such
goods.
j) Mumbai University is an educational institute hence sale of paper is not sale under MVAT
l) Material supplied for marriage catering will constitute sale under MVAT
m) Goods sent to Ahmadabad are in the course of inter-state sales hence not sale under
MVAT.
n) As clarified by the Department, import license would constitute goods under the MVAT
21
MVAT: REGISTRATION
This lesson aims to discuss the machinery provisions of MVAT including the incidence of tax.
Levy of tax, the methodology, exemption, classification and other incidental matters. Following
Section 3 deals with the incidence of tax and defines the persons liable to pay MVAT and section
4 deals with the charging provisions. Sections 5, 6 and 7 deal with the exempted goods under
Schedule A, taxable foods under other schedules and tax on packing materials respectively.
Similarly, Section 8 deals with the provisions relating to sales or purchase not liable to tax.
Threshold (Basic) Turnover Limits: A dealer will be liable to MVAT if his turnover exceeds
the limits given in Section 3. The limits of turnover are of two types first in respect of Total
Turnover of Sales AND second in respect of Turnover of Sales OR Purchases of Taxable Goods.
Then these limits are different for IMPORTERS and OTHER types of Dealers.
22
However, these limits are NOT Applicable to dealers opting for Voluntary Registration. These
Scope of Turnover:
3. (1) Every dealer, who, immediately before the appointed day, holds a valid or effective
certificate of registration or license under any of the earlier laws or, as the case may be, who is
liable to pay tax under any of the earlier laws, in the year ending immediately before the
appointed day shall, if his turnover of sales or purchases has, in the said year under any of such
earlier laws, exceeded rupees five lakh, or, as the case may be, if he is an importer in the said
year and his turnover of sales or purchases in the said year had exceeded rupees one lakh, shall
be liable to pay tax, with effect from the appointed day, in accordance with the provisions of this
Act, till his certificate or licence is duly cancelled under this Act.
turnover of purchases and importer shall have the respective meanings assigned to them
23
(2) A dealer to whom sub-section (1) does not apply and whose turnover, of all sales made,
during the year commencing on the appointed day or any year subsequent thereto, first exceeds
the relevant limit, specified in sub-section (4), shall, until such liability ceases under sub-section
(3), be liable to pay tax under this Act with effect from the 1st day of April of the said respective
year:
Provided that, a dealer shall not be liable to pay tax in respect of such sales as take place during
the period commencing on the 1st day of April of the said respective year upto the time when his
turnover of sales (), as computed from the 1st day of April of the said respective year, does
not exceed the relevant limit applicable to him under sub-section (4).
(3) Every dealer who has become liable to pay tax under this Act, shall continue to be so liable
until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other
than tax already levied or leviable, shall remain ceased until his turnover of sales () again, first
exceeds the relevant limit specified in subsection (4) or, as the case may be, until he becomes
(4)For the purposes of this section, the limits of turnover shall be as follows
(a) Limit of turnover Rs. 1,00,000. in the case of a dealer, who is an importer, and the value of
taxable goods sold or purchased by him during the year is not less than Rs. 10,000/-.
(b) Limit of turnover Rs. 10,00,000. in any other case, where the value of taxable goods sold
or purchased by him during the year is not less than Rs. 10,000.
24
(5) For the purpose of calculating the limit of turnover for liability to tax, (a) except as
otherwise expressly provided, the turnover of all sales and purchases shall be taken, whether
(b) the turnover shall include all sales()made by the dealer on his own account, and also on
(c) in the case of an auctioneer, in addition to the turnover, if any, referred to in clauses (a) and
(b), the turnover shall also include the price of the goods auctioned by him for his principal,
whether the offer of the intending purchaser is accepted by him or by the principal or a nominee
of the principal, if the price of such goods is received by him on behalf of his principal;
(d) in the case of an agent of a non-resident dealer, in addition to the turnover, if any, referred to
in clause (a), (b) or (c), the turnover shall also include the sales () of the non-resident dealer
(6) Notwithstanding anything contained in any contract or any law for the time being in force,
but subject to the provisions of this Act, any person covered by sub-clauses (a), (b), or (c) of
clause (8) of section 2 shall be liable to pay tax under this Act, whether or not the principal is a
dealer and whether or not such principal is liable to pay tax under this Act and whether or not the
(7) Any person who at any time after the appointed day becomes liable to pay tax under the
Central Sales Tax Act, 1956, but who is not liable to pay tax under the other provisions of this
section shall be liable, to pay tax on the sales effected by him on and from the day on which he
becomes so liable to pay tax under the Central Sales Tax Act. 1956 and accordingly nothing
contained in the proviso to subsection (2) shall apply to him in any year.
25
(8) Where a dealer liable to pay tax under this Act is succeeded in the business by any person in
the manner described in clause (a) of subsection (1) or sub-section (4) of section 44, then such
person shall, notwithstanding anything contained in this section, be liable to pay tax on the sales
of goods effected by him on and after the date of such succession and accordingly nothing
contained in the proviso to sub-section (2) shall apply to him in any year.
(9) Any person who is not liable to pay tax under the foregoing provisions of this section, but has
been voluntarily registered under the provisions of this Act, shall be liable to pay tax from the
date of effect of the certificate of registration duly granted to him and accordingly nothing
contained in the proviso to sub-section (2) shall apply to him in any year.
(c) Turnover of ALL types of goods - tax-free, taxable or outside the state is INCLUDED in
(d) Total turnover limit has to EXCEED the applicable benchmark limit of Rs. 1,00,000 for
an importer or Rs. 10,00,000 for a dealer other than an importer. Effectively, the limit of
Total turnover of sales for attracting of liability is Rs. 1,00,001 and above for an importer and
(a) The limit of taxable turnover of Rs 10,000 APPLIES TO ALL DEALERS whether
importers or others
26
(b) This limit INCLUDES EITHER turnover of TAXABLE SALES OR turnover of
TAXABLE PURCHASE
(c) The limit DOES NOT INCLUDE SALES AND PURCHASE BOTH aggregated together.
It means that dealer should give either turnover of sales of taxable goods or he should have
(d) ONLY turnover of taxable goods in Maharashtra only INCLUDED IN THE LIMIT.
(e) What is important is that a dealer must reach the benchmark turnover limit of Rs 10,000.
There is no requirement of crossing it. In effect, it means that the limit is more than Rs 9,999
in all case
(a) No turnover limit for import is specified for importer. Even an import of Re. 1 is
sufficient to treat the dealer as an importer and will be subject to turnover limit of
Rs. 1,00,000
(b) Turnover includes all the sales made by the dealer whether by his own account or on
(c) In case of an agent of a non resident dealer the turnover will also include the sales of non
(d) The turnover limits have to be computed with reference to each financial year separately.
27
Certain Important Points
A. Liability for Registration: A dealer has to apply for registration within 30 days from the
B. Liability to continue till cancellation of registration: Every dealer who becomes liable
under this Act to pay tax shall continue to be so liable until his registration is cancelled.
C. Agent and Non-resident dealers: Any agent, non-resident dealer is liable to pay tax if he is
covered by the turnover limits prescribed under section 3. Actual status of principal is
irrelevant i.e. principal may or may not be dealer or may or may not be disclosed.
D. Compulsory registration for CST dealers It is mandatory for a person registered under
CST Act, to obtain registration under MVAT even if he may not be reaching the turnover
limits prescribed under section 3. In other words, persons engaged in inter-state trade have to
register under MVAT also irrespective of the fact whether their turnover exceeds the limits of
E. Successor or Transferee Where a business of a dealer is liable to pay tax under MVAT is
transferred by sale or assignment, then the successor will be liable for compulsory
registration irrespective of the fact whether their turnover exceeds the limits of Rs. 1 lakh/10
F. Voluntary Registration Any person can apply for voluntary registration even if he is not
legally liable for registration by paying a deposit of Rs 25,000 In such case, there is no
requirement for any turnover limits given above but once the registration is granted to him ,
28
Notes:
i. Reference to turnover of ` 1,00,000 or ` 10,00,000 is with respect to sales only. Sales will
ii. No turnover limit for import is specified for importer. Even an import of Re. 1 is sufficient
iii. The dealer who is liable to pay tax is required to apply for registration under the Act within
30 days from the date on which prescribed limit of turnover exceeds. In case of change in
to be made within 30 days from the date of such change. In case of death of a dealer, an
application for new registration for transfer or succession of business can be made within 60
days from the date of death of dealer. If application for TIN is made within the time as
mentioned above, then registration certificate will be granted from the date of liability,
otherwise from the date of application. One TIN number will be issued for the whole state of
Maharashtra, which will cover all the places of business of the dealer in Maharashtra.
The VAT TIN may be given retrospective effect by the concerned Joint Commissioner of
Sales Tax on making separate application for Administrative Relief. (Refer Circular No. 33T
of 2007 dated 18th April, 2007 and 36T of 2009 dated 24th December, 2009 issued by
iv. The dealer can also apply for voluntary registration by paying registration fees of ` 5,000/-.
Registration certificate in such case will be granted with effect from the date of application.
Apart from registration fee of ` 5000/- , a dealer is also required to deposit `. 25,000/-. With
effect from 1st May, 2011, it has been provided in Section 16(2A) that this deposit is in the
29
nature of security deposit and cannot be adjusted against the tax liability. However, this
security deposit will be refundable. As per Rule 60A, a person or dealer will have to make an
application to registering authority for refund of security deposit after 36 months but before
48 months from the end of the month containing date of effect of registration certificate. In
deposit will have to be filed within 6 months from the date of service of cancellation order. If
application is not filed within the prescribed time limit, then deposit will be forfeited. Subject
to above, if all the returns are filed and all taxes are paid then the registration officer will
v. The application for registration (VAT TIN) is to be made in Form No.101 and in Form A for
C.S.T TIN.
30
ILLUSTRATIONS ON REGISTRATION:
I. Rajesh starts a business on 10/5/2011. He furnishes the following information regarding the
turnover of purchases and sales transactions. He wants to find out whether he is liable for
31
Since Rajesh is an Importer, following turnover limits are applicable
Rajesh crosses the turnover limit of sales in the month of May.2011, when the aggregate sales
turnover is Rs. 2, 42,500. Purchase turnover exceeds Rs, 10,000 in July, 2011.
Rajesh is liable for Registration in July 2011 that is the earliest date on which he fulfills both the
conditions. Thereafter sales also exceed Rs. 10,000 in August, 2011 is immaterial.
II. The following information regarding the turnover of purchases and sales transactions is
submitted by Allen, who started Business on 1st March 2011. Find out whether as per the
provision of the MVAT Act 2002, it is liable for registration and payment.
Solution: Given data is for two financial years 2009-10 and 2010-11. Hence limits will have
32
Allen is an Importer covered by the following turnover limits
During the financial year 2010-11, Allen starts his business in the month of March, 2011,
during the year he has total turnover of sales of Rs 43,500 and also his turnover of taxable
purchase as well as sales is Rs. 3,500 each. He does not satisfy both the limits; hence he is
During the next financial year, 2011-12 it is clear from the information given, that Allen has
crossed the turnover limit of sales in the month of June 2011, when his sales is Rs. 1,47,500
and his taxable Purchase turnover exceeds Rs, 10000 in June, 2011
Allen is liable for Registration in July 2011 that is the earliest date on which he fulfills both
the conditions.
33
NEWSPAPER ANALYSIS
NEW DELHI: The National Consumer Disputes Redressal Commission has held that shops
selling goods at 40% discount cannot charge VAT or any other duty on the discounted price.
It said that the rebate was on the MRP, which includes all taxes and cess as per Section 2(d)
of Consumer Goods Act. The NCDRC order came last month after state forums had rejected
the plea of Woodland franchises in Chandigarh and Delhi that had refused to refund VAT
charged to customers on jackets sold at 'flat 40% discount'. The amount in dispute was
Rs 119.85, which was the VAT charged on a jacket bought at 40% discount on an MRP of
Rs3,995.
Justice DK Jain, NCDRC president, held that "the advertisement in the above form is nothing
bargain price, which itself was not intended to be the real bargaining price and, therefore,
"The defence of the petitioners that they had charged VAT as per law is of no avail as the issue,
viz misleading advertisement resulting in unfair trade practice, is concerned," the order said. The
bench upheld verdicts of district and state forums that any discount falling short of "flat 40%" on
the MRP would amount to unfair trade practice. The district forum had directed the shop owners
to refund the extra amount to complainants, besides paying compensation, ranging between Rs
2,000 and Rs Rs 5,000, and litigation cost, between Rs 1,000 and Rs 2,500.
34
VAT in UAE will not affect trade: Dubai Chamber chairman
NEW DELHI:
The UAE levying a 5% value added tax from next year will not affect trade, Dubai Chamber of
"There will be no affect of VAT on trade. The discussion is to have VAT between 4-5%. It is an
excellent step to collect information, businesses' capacity and gauge their condition," said Al
Ghurair. The revenue earned can then be used to improve the business environment, he
said. Bilateral trade between India and the UAE is around $58 billion. While India is UAE's
largest trading partner, the UAE is the third largest trading partner of India after China and the
US. Inviting Indian companies to make use of Dubai's storage and port facilities to export to
other markets like Africa, Al Ghurair said that the two countries can collaborate in food sectors,
healthcare, education, construction and tourism. With protectionism on the rise globally, he said
it is a good time to look East but added that India can make doing business easier if a single
window clearance system is put in place. The chamber plans to open its first office in India office
in Mumbai later this year. Of all new companies that registered with Dubai Chamber last year,
29% were Indian, taking the total number of Indian members to over 36,000.
35
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https://en.wikipedia.org/wiki/Value-added_taxation_in_India
mahavat.gov.in/Mahavat/Controller?option=ACTS
www.knowledgebible.com/forum/showthread.php/...Definitions-in...VAT)/page4
http://www.taxclick.org/type/mvat-cst/voluntary-registration-vs-compulsory-registration-under-mvat/.
https://www.bcasonline.org/files/SubTop/attachedfiles/MVATAct.htm
taxguru.in/goods-and-service-tax/registration-mvat-act-2002.html
http://mahavat.gov.in/Mahavat/MyFold/WHATS%20NEW/ExistingDealerManual.pdf.
Business Standard
wisebrain.info/maharashtra-value-added-tax-mvat-paper-v-direct-and-indirect-taxes-s.
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