Project Report on Mvat

15609 Words Jul 3rd, 2009 63 Pages
CONTENT

Sr. No.
Topics Covered
Page No.
1
Section - I Introduction to Value Added Tax.
1 - 12
2
Section - II Value Added Tax in Maharashtra.
13

A. Introduction.
B. Registration under Value Added Tax.
C. Explaining Value Added Tax.
D. Calculating Tax Liability.
E. Filing of Return and Paying Tax.
F. Records and Accounts.
G. Business Audit.
H. Appeals.
I. Tax Payer Service.
J. Recovery, Offences and Penalties.
14 - 16
17 - 21
22 - 27
28 - 36
37 - 44
45 - 48
49 - 51
52 - 56
57 - 61
62 - 66
3
Section - III Appendix.
67 - 69
4
Section - IV Conclusion.
70
5
Section - V Bibliography.
71
WHAT IS Value Added Tax?

Value Added Tax is a broad-based commodity tax that is levied at multiple stages of production. The concept is akin to excise
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Thus the concept of zero VAT rate on some items has been introduced.

Difference between VAT and CST

Under the CST Act, the tax is collected at one stage of purchase or sale of goods. Therefore, the burden of the full tax bond is borne by only one dealer, either the first or the last dealer. However, under the VAT system, the tax burden would be shared by all the dealers from first to last. Then, such tax would be passed upon the final consumers.
Under the CST Act, the tax is levied at a single point. Under the VAT system, the retailers are not subject to tax except for the retail tax.

Under the CST Act, general and specific exemptions are granted on certain goods while VAT does not permit such exemptions. Under the CST law, concessional rates are provided on certain taxes. The VAT regime will do away with such concessions as it would provide the full credit on the tax that has been paid earlier.

Under VAT law, first, the dealer pays tax on the sale or purchase of goods. The subsequent dealer pays tax on the portion of the value added upon such goods. Thus, the tax burden is shared equally by the last dealer. To illustrate the whole procedure of VAT, an example is as follows:

At the first point of sale, the value of goods is Rs.100. The tax on this is 12.5%. Therefore, the net VAT would be 12.5%. At the second change of sale, the sale value is Rs.120 and the tax thereon is 15%. The tax that is to

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