25 December 2012
BUSINESS 1: WHOLESALE BUSINESS MVAT COLLECTED ON SALES & MVAT PAID ON PURCHASES MADE IS DONE IN NORMAL MANNER
BUSINESS 2: RETAIL BUSINESS SALE IS DONE @ MRP MVAT IS PAID ON PURCHASES MADE FOR RETAIL BUSINESS
QUERRY:1.)WHETHER MVAT PAID ON THE PURCHASES MADE FOR THE RETAIL BUSINESS CAN BE SET-OFF AGAINST THE SALES OF WHOLESALE BUSINESS
2.) CAN THE DEALER DO THE REVERSE CALCULATION OF MRP & BIFURCATE THE MVAT COLLECTED AMOUNT FROM THE TOTAL MRP COLLECTED & THEN SET-OFF THE MVAT PAID ON RETAIL PURCHASES AGAINST THIS MVAT COLLECTION SO BIFURCATED?
29 December 2012
Under MVAT Act, periodic tax liability and filling of return is required for all the businesses together, in single return. Total MVAT paid on all the purchases is to be setoff against the total out put tax on all the sale. Tax is payable on all the sales calculated at appropriate rate given in sch.Where tax is not charged separately in bill in retail, wholesale or sale on MRP rate, out put tax is to be calculated by reverse calculation.
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