Maharashtra VAT, TIN Registration, VAT Rates and Return Filing

The sales and transfer of goods of every kind which is tradable, and sold and purchased in the normal course of commerce are taxable in India under Value Added Tax (VAT) Act implemented by each of the State. Value Added Tax or VAT as the name suggest is a tax on the value added to the Goods in each step of the production and distribution process. The final VAT tax is however borne by the end consumer as the dealers are allowed to retain the tax collected on his/her purchases against the VAT tax paid by the dealer. In this article we look at the procedure for Maharashtra VAT Registration / TIN Registration, Maharashtra VAT rates and MVAT return filing.

Maharashtra VAT is not applicable from 1st July, 2017 on implementation of GST. For more information you can read about GST registration, GST return filing and GST accounting software.

Maharashtra VAT Registration

The Maharashtra Value Added Tax Act, 2002 governs VAT / TIN Registration in Maharashtra, VAT Tax Rates, Return Filing and all aspects of Value Added Tax in Maharashtra. In Maharashtra, VAT Registration is mandatory for anyone with annual sales turnover of over Rs.5 lakhs. In case, of Importers, VAT Registration is mandatory if the annual turnover crosses Rs.1 lakh. In addition, those persons wishing to commence commerce in the state of Maharashtra may get voluntary VAT Registration under Section 16 of the Maharashtra Value Added Tax, 2002 by paying a security deposit of Rs.25000 to the Government Treasury. Once the application for VAT Registration is made, the registering authority will allot a TIN Number (Tax Identification Number). There is no difference between VAT, TIN and CST, so the Maharashtra VAT Registration will also serve as the dealers Maharashtra TIN Number or Maharashtra CST Registration.

Maharashtra VAT Tax Rates

In Maharashtra, VAT Tax Rates are levied under five different categories based on the goods sold. The following are the major schedules of Maharashtra VAT Tax Rates and the respective VAT Rate:

Goods in Schedule A - VAT Exempt (Eg: Manually operated agricultural implements, electricity, firewood, salt, etc.,)
Goods in Schedule B - 1% or 1.1% VAT Tax Rate (Jewellery, Precious Metals, Precious Stones, Imitation Jewellery, etc.,)
Goods in Schedule C - 2% or 3% or 4% or 5% VAT Tax Rate (Agricultural machinery, cotton yarn, bicycles, medical drugs, paper, etc.,)
Goods in Schedule D - 20% and above VAT Tax Rate (Foreign Liquor, Wine, High Speed Diesel Oil, Aerated Drinks, Cigars, Cigarettes, etc.,)
Goods in Schedule E - 12.5% VAT Tax Rate - Those goods not mentioned in any of the above schedules are tax at 12.5% under Schedule E.

Click here to download complete Maharashtra VAT Tax Rates.

Maharashtra VAT (MVAT) Return Filing

Dealers having a tax liability of Rs.0 lakhs or more in the previous year are required to file monthly Maharashtra VAT Return within 21 days of the previous month. Those dealers having a tax liability of more than Rs.1 lakh but less than Rs.10 lakh in the previous year are required to file Quarterly MVAT Return within 21 days of end of quarter. Dealers having less than Rs.1 lakh of tax liability in the previous year can file half year MVAT returns within 30 days of end of six months of financial year.

Maharashtra VAT Payment

The Maharashtra VAT Payment due date falls on the same due date as that of the MVAT Return due date. Therefore, dealers having a tax liability of Rs.0 lakhs or more in the previous year are required to deposit monthly Maharashtra VAT payment within 21 days of the previous month. Those dealers having a tax liability of more than Rs.1 lakh but less than Rs.10 lakh in the previous year are required to pay monthly MVAT payment within 21 days of end of quarter. Dealers having less than Rs.1 lakh of tax liability in the previous year can pay MVAT payment within 30 days of end of six months of financial year.