7/21/2019 MAH-VAT Presentation.ppt
1/43
7/21/2019 MAH-VAT Presentation.ppt
2/43
TITLE AND SCOPE OF MVAT ACT
Act may be called the Maharashtra Value Added TaxACT, (Levy and Amendment) Act, 2005
It shall come into force with effect from such date as thestate Government may appoint by notification in theOfficial Gazette.
Following earlier Acts have been repealed and merged into VAT
a) The Bombay Sales Tax Act 1959
b) The Maharashtra Sales Tax on Transfer of Property in
goods involved in execution of Works Contract(Re-enacted) Act, 1989
c) The Maharashtra Sales Tax on Transfer of Right touse any goods for any purpose Act 1985
d) Bombay Sales of Motor Spirit Taxation Act 1985
7/21/2019 MAH-VAT Presentation.ppt
3/43
7/21/2019 MAH-VAT Presentation.ppt
4/43
7/21/2019 MAH-VAT Presentation.ppt
5/43
IMPORTANT CHANGES IN DEFINITION
BUSINESS : Includes Service.
DEALER : Includes person engaged in business ofdeemed sales like Works Contract, Lease Contract, andan Auctioneer and Trust.
PURCHASE PRICE : Purchase price includes purchaseprice for Works Contract.
SALE :Includes deemed sale.
SALE PRICE: Sale price includes sale price for WorksContract.
SERVICE: Means services as may be notified by thestate government.
TAX : Includes any amount payable by way ofcomposition but does not include purchase tax.
7/21/2019 MAH-VAT Presentation.ppt
6/43
7/21/2019 MAH-VAT Presentation.ppt
7/43
THRESHOLD LIMIT FOR REGISTRATION
DEALER
TURNOVER OF
TAXABLE
GOODS
TOTAL TURNOVER
Importer 10,000 1,00,000
Other Dealers 10,000 5,00,000
Voluntarily
Registered Dealer N.A. N.A.
CST RC Holder N.A. N.A.
7/21/2019 MAH-VAT Presentation.ppt
8/43
RATES OF TAXES UNDER MVAT ACT
Sr.
No. Description of goods Rate of Tax Schedule
1 Goods of daily necessities Nil A
2 Gold, Silver, Precious Stones
and articles of Jewellery1% B
3 Declared goods, Rawmaterials, Telecom products,
IT products, Industrial inputs,
Notified capital goods, Bulk
drugs etc.
4% C
4 Indian made foreign liquor and
country liquor 20%
D
5 Various products of Motor
Spirit28 to 34% E
6 All goods not listed in any of
the above schedule12.5% F
7/21/2019 MAH-VAT Presentation.ppt
9/43
MECHANISM OF VAT
Dealer
Manufact-urers
price /
Resellers
input cost
Less :Input
Tax
Credit
Net
Purchase
Price
Value
Addition
(Margin)
Sale
Price
Tax @
10%
Tax paid
to Govt.
Manufa-
cturer
100 - 100 - 100 10 10
2nd
Seller110 -10 100 50 150 15 5
3rd
Seller165 -15 150 50 200 20 5
4th
Seller220 -20 200 50 250 25 5
Total 595 -45 550 150 700 70 25
7/21/2019 MAH-VAT Presentation.ppt
10/43
IMPACT ON MANUFACTURERS SELLING PRICE
WHERE INPUT SOURCED FROM VARIOUS SOURCES
SOURCES
AND
UTILISATION
OF INPUT
% OF
INPUT
USED
IN
MFGR.
INPUT
USED
IN
MFGR.
(Rs.)
TAX
INCIDE
NCE ON
INPUT
(Rs.)
COST OF
INPUT
USED IN
MFGR.
(Rs.)
LESS:
INPUT
TAXCREDIT
( Rs.)
NET
COST OF
INPUT
(Rs.)
OTHER
OVERHE
ADS AND
MARGIN
( Rs. )
MAFRS
SELLING
PRICE
Local
purchases
used in FG for
sale from
state of
manufacture
40% 40.00 5.00
@ 12.5%
45.00 5.00
@ 12.5%
40.00
100.00 202.00
Local
purchases
used in FG for
Branch
Transfer
outside state
30% 30.00 3.75
@12.5%
33.75 2.55
@ 8.5%
31.20
Interstate
purchasesused in FG for
sale
20% 20.00 0.80
@ 4%
20.80 Nil
(No ITCon CST)
20.80
Imports used
in FG for sale
10% 10.00 Nil
(No tax
on
Import)
10.00 Nil
( No ITC
on
Imports)
10.00
TOTAL 100% 100.00 9.55 109.55 7.55 102.00
7/21/2019 MAH-VAT Presentation.ppt
11/43
IMPACT ON CONSUMERS PRICE WHERE GOODS
SOLD WITHIN THE STATE OF MANUFACTURE
DISTRIBUTION
CHAIN
INPUT
COST
( Rs. )
LESS:
INPUT
TAX
CREDIT
(Rs. )
NET
INPUT
COST
(Rs.)
MARGIN
%
MARGIN
AMOUNT
(Rs.)
SELLING
PRICE
(Rs. )
TAX
APPLIC
ABLE
(Rs.)
GROSS
SELLING
PRICE
(Rs.)
Sale by
Manufacturerto whole seller
within state
202.00 N.A.
(Included
in price)
202.00 N.A.
(Include
d inprice)
N.A.
(Included
in price)
202.00 25.25
@ 12.5 %
227.25
Sale by Whole
Seller to
Retailer within
state
227.25 25.25 202.00 15 % 30.30 232.30 29.03
@ 12.5%
261.33
Sale by
Retailer to
Consumer
within state
261.33 29.03 232.30 10 % 23.23 255.53 31.94
@ 12.5 %
287.47
7/21/2019 MAH-VAT Presentation.ppt
12/43
IMPACT ON CONSUMERS PRICE WHERE GOODS SOLD
THROUGH BRANCH TRANSFER OUTSIDE
THE STATE OF MANUFACTURE
DISTRIBUTIONCHAIN
INPUTCOST
( Rs. )
LESS:INPUT
TAX
CREDIT
(Rs. )
NETINPUT
COST
(Rs.)
MARGIN%
MARGINAMOUNT
(Rs.)
SELLIN
G
PRICE
(Rs. )
TAXAPPLIC
ABLE
(Rs.)
GROSSSELLIN
GPRICE
(Rs.)
Transfer by
Manufacturer
to Branch
outside state
202.00 N.A.
(Includ
ed in
price)
202.00 N.A.
(Included
in price)
N.A.
(Included
in price)
202.00 N. A.
( No
tax on
BT)
202.00
Sale by Branch
to Whole
Seller in
transferee
state
202.00 N. A.
No ITC
on BT)
202.00 N. A.
(Included
in price)
N. A.
(Included
in price)
202.00 25.25
@12.5%
227.25
Sale by Whole
Seller toRetailer in
transferee
state
227.25 25.25 202.00 15% 30.30 232.30 29.03
@12.5%
261.33
Sale by
Retailer to
Consumer in
transferee
state
261.33 29.03 232.30 10% 23.23 255.53 31.94
@12.5%
287.47
7/21/2019 MAH-VAT Presentation.ppt
13/43
7/21/2019 MAH-VAT Presentation.ppt
14/43
TAX INVOICE
A registered dealer under MVAT Act selling taxablegoods to another registered dealer has to issue a TaxInvoice in the prescribed format.
The tax invoice should be preserved for three years fromthe end of the year in which the invoice is raised.
Provision of Tax invoice is not applicable for
a) the transactions effected under CST Act,
b) Dealers paying tax under composition.
c) Unregistered dealers.
Bill or Cash Memo can be issued by registered dealerpaying tax under composition (other than a workscontractor) or by an unregistered dealer.
7/21/2019 MAH-VAT Presentation.ppt
15/43
TAX INVOICE
Tecnimont ICB Pvt. Ltd.
Chincholi Bunder, 504, Link Road , Malad (W), MUMBAI 400 062
ST RC No. Dt.
Invoice to Invoice L/R R/R No.
M/s Phillips India limited Date Date
Andheri (East), D/Note No. P.O. No.
Mumbai400 093 Date Date
Customers RC No. Date
Sr. No. Description of Goods Quantity Rate Amount
Total
Trade discount
Packing Material
Octroi
Freight
VAT @
CST @
Total
I/We hereby certify that my/our registration certificate under the Maharashtra Value Added Tax Act,
2002 is in force on the date on which the sale of the goods specified in this tax invoice is made by
me/us and that the transaction of sale covered by this tax invoice has been effected by me/us and it
shall be accounted for in turnover of sales while filing of returns and the due tax, if any, payable on
the sale has been paid or shall be paid.
for Tecnimont ICB Pvt. Ltd.,
Sd
7/21/2019 MAH-VAT Presentation.ppt
16/43
TAXABLE TURNOVER NON COMPOSITION
METHOD
Taxable turnover of registered dealers under non-composition
method for various types of sale transactions can be
determined as follows:
1) Transactions of sale of goods : Total Sale price asdetermined by the contract of sale.
2) Lease transaction : Total lease rentals as per lease
agreement for predetermined period.
3) Hire purchase transaction :Installment representing saleprice receivable during predetermined period.
4) Works Contract Transactions : Turnover determined by
choosing either of the following methods:
7/21/2019 MAH-VAT Presentation.ppt
17/43
WORKS CONTRACT TURNOVER NON
COMPOSITION METHOD
A) Where prescribed deductions can be estimated from
books of account :
Total Contact Value : xxxxxx
Less : Prescribed deductions:
a) Labour charges for execution of
Works Contract xxxx
b) Amount paid to subcontractor xxxx
c) Charges for planning designing &
Architectsfees xxxx
d) Charges for acquiring machines, tools etc. xxxx
e) Cost of consumable in which property does
not pass to contractee xxxx
f) Cost of establishment relating to supply of
labour and services xxxx
g) Other expenses relating to supply of labour
and services xxxx
h) Profit of contractor relating to labour
& services xxxx
------------BALANCE = Taxable Amount xxxxx
7/21/2019 MAH-VAT Presentation.ppt
18/43
WORKS CONTRACT TURNOVER NON
COMPOSITION METHOD
A) Where prescribed deductions cannot be estimated from
books of account : Turnover = Total Contract Value
Less : following Deductions
Sr.No. Nature of Contract % of deduction
1. Installation of Plant and Machinery 15
2. Installation of Air Conditioner and cooler 10
3. Installation of Elevators 154. Fixing of marble slabs, granite & tiles 25
5. Civil works like construction of Bldg. Roads etc. 30
6. Construction of Railway Coaches etc. 30
7. Ship and Boat building etc. 20
8. Sanitary Fittings, Plumbing, Drainage etc. 15
9. Painting and Polishing 20
10. Construction of Motor Vehicles and Trucks 20
11. Laying Pipes 20
12. Tyre re-trading 40
13. Dyeing and printing of Textile 40
14. Any Other Works Contract 20
7/21/2019 MAH-VAT Presentation.ppt
19/43
TAXABILITY UNDER COMPOSTION METHOD
Composition options for payment of tax are available to
following dealers under MVAT Act :
1) Works Contractor :
Total Contract Value x x x x x x
Less : Amount payable to sub-contractor x x x x x
-------------------
Balance Contract value = Taxable Turnover x x x x x x
Tax @ 8% on the Taxable Turnover = x x x x x
Less: Set-Off @ 16/25 i. e. 64% of x x x x x
local tax paid on purchases
------------------
Balance Tax payable x x x x x
------------------
7/21/2019 MAH-VAT Presentation.ppt
20/43
TAXABILITY UNDER COMPOSTION METHOD
2) Retailer :
Types of
Dealers
Nature of sale se
transactions
Rate of composition Conditions
Retailers
whose at
least 90%
of the sale
is directly
made to
customers
who arenot dealers
Resale made by a
registered dealer
of any goods
excluding
a) Foreign Liquor
b) Country Liquor
c) Drugs and
d) Motor Spirits
8 % of profit elements
arrived at as given
below:
Six monthly turnover
of eligible sales
Less :
Six monthly turnover
of purchases effected
from registered dealer
including the amount
of tax paid separately
1. Application should
be made in Form 4
2. Selling dealer does
not collect tax
separately.
3. Selling dealer
does not claim
set-off on input
4. For first six
monthly periodstarting from 1st
April 2005, only
5/6thof the
turnover should be
considered
instead of full
100% turnover.
7/21/2019 MAH-VAT Presentation.ppt
21/43
TAXABILITY UNDER COMPOSTION METHOD
3) Restaurants, Clubs and Hotels :
Types of
Dealers
Nature of sale or purchase
transactions
Rate of
composition
Conditions
Restaurants,
Clubs and
Hotels
Total sale of food and non-
alcoholic drinks served other
than by Four Star and aboveRestaurants and Hotels
8% of T.O. of
sales by
registered
dealers
10% of T.O.
of sales in
case ofun-registered
dealers
1. Application
should be
made in
Form-1
1) Dealer is
not entitled
for ITC or
refund
2 ) Dealer shall
not collect
tax separately
from customer
7/21/2019 MAH-VAT Presentation.ppt
22/43
TAXABILITY UNDER COMPOSTION METHOD
4) Caterers :
Types of
Dealers
Nature of sale or purchase
transactions
Rate of
composition
Conditions
Caterers Sale of food and non-
alcoholic drinks served at
any place other than
Restaurant
6% of T.O. of
sales by
registered
dealers
8% of T.O.of
sale by
un- registered
dealer
1. Application
should be
made in
Form 2
2. Dealer is
not entitled
for ITC or
refund
3. Dealer shall
not collect
tax separately
from customer
7/21/2019 MAH-VAT Presentation.ppt
23/43
TAXABILITY UNDER COMPOSTION METHOD
5) Bakers :
Types
of
Dealers
Nature of sale or
purchase
transactions
Rate of composition Conditions
Bakers Total sale of bakery
products
4% of
turnoverof sale for
1) Registered Bakery
owner having
turnover of less than
Rs. 30L in the
previous year
6% ofturnoverof
sale for
2) Un-registered
dealer having
annual turnover
not less than
30L
1. Application
should be
made in
Form - 3
2. Dealer is not
entitled for
ITC or refund
7/21/2019 MAH-VAT Presentation.ppt
24/43
7/21/2019 MAH-VAT Presentation.ppt
25/43
RETURNS
No provision for Annual Return.
Every Registered dealer shall file a Correct, Complete and selfconsistentReturn in prescribed Form.
The Return shall be deemed complete and self consistent if
a) Details provided in the return form are filled in fully.
b) All the items in return such as sales & purchase turnover,claims of set-off, claims for goods return, calculation of tax,details of payments and eligible deductions are provided and
are arithmetically self consistent.
Monthly returns will be audited by a Chartered Accountantand scrutinized by the Department.
7/21/2019 MAH-VAT Presentation.ppt
26/43
RETURNS
Defect Memo :
If the Return is not complete and self consistent, thecommissioner may serve on the dealer a Defect Memo.
After receipt of the Defect Memo the dealer has tocorrect the defect memo and submit a fresh selfconsistent and complete return within one month fromthe service of the Defect Memo.
Revised Return :
Revised return U/S 20(5) can be filed any time beforethe notice for assessment is served
OR
Before the expiry of six months from end of the year inwhich said return is furnished, whichever is earlier.
7/21/2019 MAH-VAT Presentation.ppt
27/43
RETURNS
Periodicity for filing Returns and Payment of taxes under MVAT Act.
Sr. No. Dealer Tax Liability
Rs.
period Due date Form
No.
1. Registered Dealer Exceeding
1,00,000
Monthly 20th day of the
following month forJan. & Feb. and 25th
day for rest of the
months.
201
2. Registered dealer Between12001
to 1,00,000
Quarterly Within 25 day from
the end of the period
of the quarter.202
3. Registered dealer Up to 12000 6 Monthly Within 25 day from
the end of the period
of 6 month.203
4. Registered dealer
opted for
composition
Not prescribed
as yet
6 Monthly Within 25 day from
the end of the period
of 6 month.204
5 Restaurants optingfor composition
As prescribed As may beprescribed
As may beprescribed
205
6. Bakeries opting for
composition
As prescribed As may be
prescribed
As may be
prescribed
206
7. Second Hand Car
dealer
As Prescribed As may be
prescribed
As may be
prescribed
207
8. Motor Spirit dealer As prescribed As may beprescribed
As may beprescribed
208
7/21/2019 MAH-VAT Presentation.ppt
28/43
AUDIT
Audit by Chartered Accountant :
Every Registered dealer whose turnover of sales orpurchases exceed Rs. 40,00,000/- has to get his accountsaudited by a Chartered Accountant.
The dealer has to furnish Audit Report to the Departmentwith following documents within eight months form the endof the year to which the report relates.
1)Profit & Loss Account and Balance Sheet with detailedschedule of Fixed Assets.
2) Reconciliation of sales and purchase figures shown in theReturns with the figures shown in Profit & Loss Accountand Balance Sheet.
3) Proof of payment i. e. tax paid challans
4) Information regarding credit purchases
5) statement of set-off claimed in the prescribed form.
7/21/2019 MAH-VAT Presentation.ppt
29/43
AUDIT
6) Contravention statement of CST purchase like goodsnot included in RC, goods not utilised for intendedpurpose, statement of missing forms such as C, E-I, E-II,H, F etc.
7) Details of URD purchases, where purchases madefrom a dealer exceeding Rs. 10,000/-
8) The auditor will verify the following details from books
accounts with the returns filed and submit the AuditReport with his observations.
a) Turnover of sales and purchases including CST
b) Computation of Set-off claimed
c) Computation of CST payable with description of goods
and Schedule and Entry.d) Branch transfers with respect trading and
manufactured goods etc.
Failure to submit Audit report in time will attract penaltyequal to 1/10% of the total sale or Rs. 1,00,000/-
whichever is less.
7/21/2019 MAH-VAT Presentation.ppt
30/43
AUDIT
Audit by Department :
1) In addition to C. A. Audit, the Department may also
arrange for audit of business of any dealer.
2) Department can carry out audit in respect of any period
3) During the course of audit the Commissioner may require
the dealer to
a) Afford the necessary facility to produce books of
accounts and other documents or verify stock and cash.
b) Furnish any information as may be required for ensuringcompliance.
4) The Officer conducting audit is prohibited from removing
any books of accounts.
7/21/2019 MAH-VAT Presentation.ppt
31/43
ASSESSMENT
There is no provision for annual assessment in MVATAct.
Where a registered dealer fails to file a return inrespect of any period by the prescribed date, theCommissioner may carry out Best Judgmentassessment.
Where Commissioner considers it necessary to ensurethe correctness of the return filed, shall assess thereturn of any period by calling anyinformation/documents from the dealer.
Where the Commissioner has reason to believe that adealer liable to pay tax has not applied for registrationand paid tax, can pass Best a Judgment assessmentorder.
7/21/2019 MAH-VAT Presentation.ppt
32/43
SET OFF
General conditions for granting Set-Off
Set-Off can be claimed only on production of original TaxInvoice.
The dealer has to preserve and produce the original Tax Invoicefor claim of Set-Off when demanded by the Authority.
No Set-Off can be claimed unless the dealer has maintained
purchase register in chronological order as prescribed underRules.
Set-Off amount can be adjusted against tax payable underMVAT and CST Act. Balance if any can be carried forward tosubsequent period in the same year.
Set-Off remaining un-adjusted at the end of the year will berefunded.
Set-Off of tax paid on trading goods purchased before appointedday and held in stock as on 31.03.2005 can be claimedimmediately after the appointed day.
7/21/2019 MAH-VAT Presentation.ppt
33/43
SET OFF ON GOODS HELD IN STOCK AS ON
31.03.2005
1) Set-Off is available of tax paid on
a) Purchases of Trading Goods and Capital Assets for resaleunder Bombay Sales Tax Act
b) Purchases of goods under Motor Spirit Act
c) Purchases of goods under Works Contract Act
d) Purchases of goods under Lease Act
e) Entry of Motor Vehicles under Entry of Motor Vehicles Act
f) Entry of Goods under Maharashtra Tax on Entry of Goods
in to Local Area Act.
2) Set-Off for purchases effected under Bombay Sales Tax Act
is available for
a) Sales Tax paid separatelyb) Sales Tax included in purchase price
c) Purchase Tax paid
3) Set-Off on opening stock will be granted during the year
2005-06 in the month of April itself.
7/21/2019 MAH-VAT Presentation.ppt
34/43
SET OFF ON GOODS HELD IN STOCK AS ON
01.04.2005
4) No Set-Off is available
a) For turnover tax, Surcharge and Resale Taxb) If stock statement as required, is not submitted
c) If Set-Off is already claimed under the earlier law
d) Unless goods are resold after 01.04.2005 and before
31.12.2005
e) On Capital Assets purchased prior to 31.03.2003
5) Set-Off on capital goods can be claimed only if they are
resold and in the month in which they are resold.
6) Stock statement for opening stock of trading goods for
claiming set-off has to be submitted before 30.04.2005 in
the prescribed form.
7) Set-Off of Purchase Tax paid for contravention of Form
N-14, 14-A and 14-I can be claimed only in the month of
contravention declared and P/T paid there on but before
31.12.2005.
7/21/2019 MAH-VAT Presentation.ppt
35/43
SET OFF ON PURCHASES MADE AFTER 31.03.2005
Full Set-Off is available on the following goods :
No. NATURE OF INPUT CONDITIONS IF ANY
1. Capital Assets Set-Off not available on Office
Equipments, Furniture, Fixture
and Electrical Installations.
2. Motor Vehicles Set-Off available only if used as
goods vehicles and for Motor
Vehicle dealers or Lease tax
paid on Motor Vehicles.
3. Raw Material N. A.
4. Parts N. A.
5. Components N. A.
6. Spares N. A.
7. Packing Materials If used in packing of Taxable
Goods or resold.
7/21/2019 MAH-VAT Presentation.ppt
36/43
SET OFF ON PURCHASES MADE AFTER 31.03.2005
No. NATURE OF INPUT CONDITIONS IF ANY
8. Other purchase debited
to P&L A/C
If receipts on account of sale of
goods is more than 50% of the
total receipts.
9. Trading Goods N. A.
10. Motor Spirit If only resold or stock
transferred.
11. Incorporeal or Intangiblegoods
Viz. Import License, Exim Scrips,Duty Free Advance License,
Export Permit / License / Quota ,
DEPB and Software for Software
dealers.
12. Tax paid under
Maharashtra Tax on
Entry of Motor Vehicles
Full Entry Tax Paid
13. Tax paid under Entry of
any Goods in to Local
Area
Full Entry Tax paid
7/21/2019 MAH-VAT Presentation.ppt
37/43
SET OFF ON PURCHASES MADE AFTER 31.03.2005
Set-Off at reduced rate is available on following goods:
Sr. No. Description of goods Extent of Reduction
1. Taxable goods used as Fuel 4% of PP
2. Taxable Goods used in manufacture of
Tax Free goods.
4% of PP
3. Packing Material used for sale of Tax
Free goods
4% of PP
4. Taxable goods used in manufacture of
Goods for Branch Transfer.
4% of PP
5. Input used in execution of WorksContract under Composition option
36 % of Input Tax paidon Local Procurement
6. Liquor Vendors holding License in
Form FLII/CLIII where SP is less than
MRP
Set-Off available at
the ratio = SP/MRP
7/21/2019 MAH-VAT Presentation.ppt
38/43
NON ADMISSIBILITY OF SET OFF
No Set-Off /
Input Tax under VAT is admissible on
1. Purchase of Motor Vehicles (other than Goods Vehicles)and parts, components and accessories thereof.
2. Purchase of Motor Spirits unless they are resold.
3. Purchase of Capital Assets or consumables by job
worker not engaged in business of manufacture.
4. Purchases effected by 100% EOU, SEZ Units, PSIU
and100% EOU as these dealers are eligible for refund of
tax paid on input.
5. Purchases effected by way of woks contract where the
contract is for erection of immovable property
6. Purchases of building material which are not resold but
are used in the activity of construction.
7/21/2019 MAH-VAT Presentation.ppt
39/43
NON ADMISSIBILITY OF SET OFF
7. Purchases of Drugs/Medicine effected by Whole Seller
8. Crude Oil used by Oil Refineries for Refining
9. Purchases effected by Shipping Company
10. Purchases of incorporeal or intangible goods like
a) Trade Marks
b) Patents
c) Copy Rights etc.
11. Following purchases meant for own consumption:
a) Office Equipments
b) Furniturec) Fixture
d) Electrical installations.
12. Purchases of goods debited to P&L Account, if out of
gross receipts of a dealer, the receipts on account of sale of
goods are less than 50% of the total receipts.
7/21/2019 MAH-VAT Presentation.ppt
40/43
TAX DEDUCTED AT SOURCE
TDS is applicable on amount paid to works contractor
(other than transactions covered under CST Act).
Dealer requires to deduct TDS has to obtain Sales TaxDeduction Account Number from the department bymaking application in Form-401.
TDS should not be deducted from tax amount shownseparately.
TDS is required to be deducted form advance paid to acontractor if the same is to be adjusted towardspurchase price payable to him.
The principal contractor should not deduct TDS frompayment made to his sub-contractor.
7/21/2019 MAH-VAT Presentation.ppt
41/43
TAX DEDUCTED AT SOURCE
TDS due and deductible has to be remitted to the
Government with in 10 days from the expiry of the month,irrespective of the actual amount of tax deducted.
A Contractor can apply to the Commissioner for a
certificate, stating therein that the TDS should be
deducted only on part of the amount or not to be
deducted at all.
The employer has to deduct the tax in above case either
on part of the amount or not to deduct at all in
accordance with the certificate issued by the
Commissioner.
Employer deducting tax has to furnish TDS certificate in
Form-402 to the contractor immediately after deduction.
7/21/2019 MAH-VAT Presentation.ppt
42/43
TAX DEDUCTED AT SOURCE
The Employer issuing TDS certificates ha to maintaindetails thereof in Form 404
The Employer also has to file Annual Return in Form 405with theJoint Commissioner of Sales Tax within three months from theend of the year.
The employer has to deposit within 10 days in Form 210& file astatement in duplicate in the prescribed form within 20 daysfrom end of the relevant Quarter for which the TDS is deducted,to the Assessing Authority of the contractor.
TDS may be required to be deducted only if the payment madeto Contractor exceeds Rs. 5 Lakhs during a year.
The rate of TDS is 2% for a registered Contractor and 4% in casepayment made to unregistered Contractor.
The Employer has to apply for WCT TAN within 30 days ofeffecting TDS.
7/21/2019 MAH-VAT Presentation.ppt
43/43