Gross Receipts as per MVAT Act

This query is : Resolved

Amit Singh (Querist)
Follow

11 December 2010 Dear Sir,

I want to know what is gross receipts defined under rule 53 (6) of mvat

Its Urgent....

With Regards,

Amit

Hitender Gaur

Hitender Gaur (Expert)
Follow

13 December 2010 53(6) which earlier provided for 100% reduction of set - off of vat paid in respect of purchases which did not correspond to goods sold, in a case where receipts on account of sales are less than 50% of total receipts. Now it makes it unfavorable further by stating that no set - off will be available in respect of purchases, of which corresponding goods are not sold within 6 months of purchase. Also set - off of vat in respect of purchase of packing materials pertaining to such goods only will be available. It also clearly states that in case of clubs etc set - off will be available only in respect of purchase of capital goods & consumables pertaining to kitchens & services of food & drink.

· Earlier purchases of Office equipment, Furniture & fixture, electrical installation etc were under rule 54(i) (non admissibility clause). Now 54 (i) revamped along with others to exclude furniture's etc from non admissibility clause and to put it under 53 by way of insertion of sub rule 53(7A). Accordingly in respect of such purchases of office equipments & furniture / fixtures etc (except in case of those engaged in the business of transferring the right to use these goods) as against non admissibility, set - off (AS REDUCED BY 4%) will be available.Pl. note that while electrical installation removed from non admissibility clause the same not included under 53(7A). By implication thus, a view may be taken that whole amount of VAT paid in respect of electrical installation would be available for set - off

Message likes : 2 times

Amit Singh

Amit Singh (Querist)
Follow

13 December 2010 Thank you Sir for your reply

Now my question is that we want to submit audit report under 61 of mvat act & for which we have to upload form E-704 to maha-vat site.In form E-704 one of it annexure we have to state the gross receipt defined under rule 53(6). Is there any other section or rule defining the gross receipt.

I hope you will reply me soon...

With Warm Regards,

Amit

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

26 July 2024 Under the Maharashtra Value Added Tax (MVAT) Act, the term "Gross Receipts" plays a crucial role in various provisions including the submission of audit reports and compliance requirements. Here’s a detailed explanation of how gross receipts are defined and how they should be reported:

### **Definition of Gross Receipts under MVAT**

**Rule 53(6) of the MVAT Rules** provides the definition of "Gross Receipts" for the purpose of tax assessment and reporting. Here's a summary:

- **Gross Receipts**: According to Rule 53(6) of the MVAT Rules, gross receipts include the total amount of money received or receivable by a dealer in the course of business, before deducting any expenses or allowances. It covers all revenue including sales, services, and any other income that forms part of the business's turnover.

### **Key Aspects of Gross Receipts under MVAT**

1. **Total Receipts**: It includes all amounts received or receivable by the business, regardless of whether they are taxable or exempt.
2. **Exclusions**: It typically excludes:
- Amounts received as a loan.
- Capital receipts.
- Amounts received on behalf of another party.

### **Reporting Gross Receipts in Form E-704**

When preparing the audit report under Section 61 of the MVAT Act, and subsequently uploading Form E-704 on the MahaVAT site, the gross receipts should be accurately reported as defined in Rule 53(6). Here’s how to handle this:

1. **Form E-704**: This form requires the submission of various details including the gross receipts of the business. Ensure to fill out the form with the total amount of gross receipts as per the definition under Rule 53(6).
2. **Annexure for Gross Receipts**: The annexure within Form E-704 specifically asks for gross receipts as defined under Rule 53(6). You should report the total amount of money received or receivable during the financial year. This includes:
- Sales revenue.
- Income from services.
- Any other income that is part of the business's operational revenue.

### **Other Sections or Rules Defining Gross Receipts**

While Rule 53(6) primarily defines gross receipts for MVAT purposes, it’s important to note:

- **MVAT Act Provisions**: The Act itself provides the framework within which gross receipts are calculated. It doesn’t provide a separate definition beyond what is provided in Rule 53(6).
- **Additional Guidelines**: For specific cases or clarifications, you may refer to circulars or notifications issued by the Maharashtra Sales Tax Department, which may offer additional guidance on how to interpret gross receipts.

### **Procedure for Filing Form E-704**

1. **Collect Data**: Ensure that you have accurate data on all receipts received during the financial year.
2. **Fill Form E-704**: Enter the gross receipts in the relevant section of Form E-704.
3. **Upload**: Submit the completed form on the MahaVAT website as per the guidelines provided.

### **Conclusion**

For compliance with MVAT requirements and accurate reporting in Form E-704, follow the definition of gross receipts as specified in Rule 53(6). Ensure all sources of income are included, and consult any additional circulars or guidelines issued by the Maharashtra Sales Tax Department for clarity on specific cases.

For detailed and specific advice, especially if there are complex issues or unique scenarios, consulting with a tax professional or VAT consultant is recommended.