17 April 2009
Pls Help me on this situation 1) I had registered for MVAT on 30 Mar where my turnover was rs 8.5 Lakhs 2)My turnover limit had exceeded on Oct 2008 3)what will be my mvat liability to pay i.e a) 850000*4%=34000 b) 350000*4% (850000-500000)=14000 and whether the input credit on purchase can be taken in to consideration while paying mvat
First of all, a trader who has turnover above 5 lac needs to be registered under MPVAT Act and pay Vat tax.It is called as threshold limit.If you cross the limit you have to pay tax on the whole of the amount and not on the additional amount.
You have to pay tax @4/@12 depending on the nature of goods you trade in.
Input credit can be availed on the purchases as well.
You can calculate Vat tax assuming it to be inclusive in 8.5 lac turnover, when you have not charged & collected separately in the bills/invoices.
means vat liability will be
(850000*4)/104=32695 less input credit availed.
As you are a new trader registered in Vat Act,make sure you have filed monthly returns and availed input credit from time to time.
CAclubindia
