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BASIC CONCEPTS OF VAT

WHAT IS VAT?
Value Added Tax (VAT) is a modern and progressive form of sales tax. It is charged and collected
by dealers on the price paid by the customer. VAT paid by dealers on their purchases is usually
available for set-off against the VAT collected on sales. VAT in the form of CENVAT (Excise) is
already in force in India for quite some time.

IS VAT YET ANOTHER TAX?

No; it will replace the following four existing taxes:
The Bombay Sales Tax Act, 1959
The Maharashtra Sales Tax on the Transfer of Right to Use Any Goods For Any Purpose Act,
1985
The Maharashtra Sales Tax on the Transfer of Property in Goods Involved in the Execution of
Works Contract (re-enacted) Act, 1989
The Bombay Sales of Motor Spirit Taxation Act, 1958.

WHAT ARE THE BENEFITS OF VAT?

It is simple, transparent and progressive

Business friendly system of taxation
Reduction in the number of tax rates to only two main rates 5% and 12.5%
Reduction in the effective tax rate for many goods
Elimination of tax on tax existing in the sales tax system
Full set-off available for VAT paid on most business purchases
Simplification of tax forms and procedures
Greater reliance on self assessment and voluntary compliance by dealers.

WHAT TYPES OF BUSINESSES ARE LIABLE FOR VAT?

VAT applies to all types of business including Importers, Manufactures, Distributors,
Wholesalers, Retailers, Works Contractors, and Lessors.

HOW IS VAT CHARGED?

All registered dealers, regardless of where they are in the chain of manufacture and production
must charge VAT on their sales of taxable goods and collect it from their customers. Registered
dealers must issue a tax invoice to other registered dealers showing the VAT amount being charged
as a separate amount.
Registered dealers who pay VAT on their purchases can normally claim a set-off for the
VAT paid to their suppliers. As a result, VAT is not a cost to the dealers. Dealers must ensure that
tax is charged separately in their purchases invoice in order to be eligible to claim set-off.
Certain dealers who sell mainly to consumers at retail level can opt for a simplified system of VAT
calculation and payment under a Composition scheme. Under the Composition Scheme, dealers will not
issue a tax invoice or show VAT as a separate amount on a bill or cash memorandum.

WHAT ARE THE OBLIGATIONS OF DEALERS REGISTERD FOR VAT?

Dealers who are required to be registered for VAT must:

Charge and collect VAT on their sales of taxable goods
Issue proper tax invoices
Keep proper records and books of account
Calculate the VAT due to Government based on VAT charged on sales LESS any VAT available as a
set-off on business purchases
File VAT returns on a regular basis declaring their VAT liability
Pay the amount of VAT due to the Government with the VAT return.

WHAT IS THE RATE OF VAT?

Under the VAT, the tax rates have been simplified. There are only two main rates of VAT;
5% for items consisting mainly of raw materials used in the manufacturing process, IT products
and some goods of common consumption.
12.5% for all goods unless they are listed under the other rates.

SUCCESS ACADEMY

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Foodgrains in including pulses, milk, vegetables and books are not subject to VAT. In addition,
there are two other rates for specific items:
1% for gold, silver, other precious and semi precious stones and their jewellery
25% for liquor
The only exception to these rates is for the sale of motor spirits, which have special tax rates
based on the existing Bombay Sales of Motor Spirit Taxation Act, 1958, subject to a floor rate of
20%.

WHAT IS SET-OFF/INPUT TAX CREDIT

The essence of VAT is in providing set-off for the tax paid earlier, and this is given effect
through the concept of input tax credit/rebate. This input tax credit means setting off the amount
of input tax by a registered dealer against the amount of his output tax. The Value Added Tax (VAT)
is based on the value addition to the goods, and the related VAT liability of the dealer is calculated
by deducting input tax credit from tax collected on sales during the payment period (say, a month).

VAT CHAIN
Raw Material
Producer

Sale Price Rs. 1,000

VAT Rs. 100

Manufacturer

Sales Price Rs.1,500

Total VAT Rs. 150
VAT Payable
150-100 = Rs. 50
Wholesaler

Sales Price Rs. 1,800

Total VAT Rs. 180
VAT Payable
180-150 = Rs. 30

Consumer

Sales Price Rs. 2,000

Total VAT Rs. 200
VAT Payable
200-180 = Rs. 20

Retailer

SUCCESS ACADEMY

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DEFINATIONS
1. BUSINESS
In this Act, unless the context otherwise requires,Business includes,(a) any service;
(b) any trade, commerce or manufacture;
(c) any adventure or concern in the nature of service, trade, commerce or manufacture;
Whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern
is with a motive to make gain or profit and whether or not any gain or profit accrues from such
service, trade, commerce, manufacture, adventure or concern.
BUSINESS
BUSINESS [S.2 (4)]

Expln. To S.2 (4)

Provision of S.2 (4)

Includes
(i)

Deemed to Include
Raising Man-made Forests,
Seedlings or Plants

Service, Trade, Commerce,

Manufacture [STCM]

Adventure or Concern in STCM

(ii)

Related Transaction In
Capital Assets

Irrespective of
Profit Motive / Accrual

(iii

Purchases Debited/
Sale Credited to P & L A/c

(iv

Transaction for Commencing/

Closure of STCM/
Adventure/ Concern

2. DEALER

In this Act, unless the context otherwise requires, Dealer means any person who for the purposes of or consequential to his engagement in or, in
connection with or incidental to or in the course of, his business buys or sells, goods in the
State whether for commission, remuneration or otherwise and includes, a) a factor, broker, commission agent, del-credere agent or any other mercantile agent, by
whatever
name called, who for the purposes of or
consequential to his engagement in or in connection with or incidental to or in the course
of the business, buys or sells any goods on behalf of any principals whether disclosed or
not;
b) an auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who
organizes the sale of goods or conducts the auction of goods whether or not he has the
authority to sell the goods belonging to any principal whether disclosed or not and
whether the offer of the intending purchaser is accepted by him or by the principal or a
nominee of the principal;
c) a non resident dealer or as the case may be, an agent residing in the State of a nonresident dealer, who buys or sells goods in the State for the purposes of or consequential
to his engagement in or in connection with or incidental to or in the course of, the
business.
d) any society, club or other association of persons which buys goods from, or sells goods to,
its members.

SUCCESS ACADEMY

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DEALER
DEALER [S.2 (8)]

2
1
Deemed to Include

3
1
Excludes

Explanation to S.
2(8)
Customs

Exceptions to S.
2(8)
Agriculturist

Department
Govt.
Departments

Local Authorities

1
Means & Includes
Prov. Of S.2(8)
Buys/Sells Goods in
State in Course
of Business

1
2

Factor/Broker/Agent

Auctioneer
Non-resident Dealer

4
3

Society, Club, AOP

Dealing with
members

5
4
3

4
3
5
4
3
6
5
4
3
7
5
4
38
7
5
4
39
8
7
5
4
10
3
98
75
43

Port Trusts/Public
Charitable Trust

1
2

Educational
Institution

Transporter-Hirer

Railways / Konkan
Railways
Societies, Clubs,
AOP
Insurance/Financial
Corporations/
Scheduled Banks

MSRTC
Shipping/
Construction/Air
Transport/AirLines/Advt. Agencies

Govt. Corp.
/Bodies

State whether the following person is a dealer under the MVAT, 2002 giving reasons:
1. Auctioneer
2. Raj Travels, carrying passengers from Mumbai to Pune by bus.
3. Jaslok Hospital, selling old X-Ray Machines
4. MV & Co. Chartered Accountants.
Solution:
No.

Activity

(1)
(2)

Auctioneer
Raj Travels, carrying passengers
From Mumbai to Pune by bus.
Jaslok Hospital, selling old X-Ray Machines
MV & Co. Chartered Accountants.

(3)
(4)

Is it
Dealer
Yes
No
Yes
No

Reasons
Vide definition u/s 2 (8)
Engaged in services
To the extent of sale of machines
engaged in services.

3. IMPORTER
Importer means a dealer who brings any goods into the State or to
whom any goods are dispatched from any place outside the State.

SUCCESS ACADEMY

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4. MANUFACTURE
In This Ac, unless the context otherwise requires,Manufacture, with all its grammatical variations and cognate expressions
includes producing, making, extracting, altering, ornamenting, finishing or
otherwise processing, treating or adapting any goods.
MANUFACTURE [S. 2 (15)]
Includes
Activity

Means

(a)

Producing

Bring into existence new product

[Produce vanaspati oil from groundnut oil]

(b
)

Making

Create, generate, and assemble

[Make candles from wax]

(c)

Extracting

Take out [extract oil from groundnuts]

(d
)

Altering

Change

(e)

Ornamenting

Make appearance presentable

(f)

Finishing

Give final touches

(g)

Processing

Transform
[Process raw film into cinema reels]

(h

Treating

Treat a material to make it usable

[Treat animal-skin to make leather]

Adapting

Change for desired use

[Coating of scent on raw agarbatti]

(i)

Explain with reasons, whether the following activities are manufacturing activities as per the
provisions of the Maharashtra Value Added Tax Act, 2002:
(1) Cutting steel sheets into smaller sheets
(2) Polishing gold ornaments
(3) Assembling TV set from various parts
(4) Assembling computer for the customers household use.
Solution:
No.

Activity

(1)
(2)
(3)

Cutting steel sheets into smaller sheets

Polishing gold ornaments
Assembling TV set from various parts

(4)

Assembling computer for the

customers household use

Is it
Manufacture
No
No
Yes

Yes

Why
No new product comes into existence.
No new product comes into existence.
A new product comes into existence,
having different properties, qualities &
use.
A new product comes into existence
having different properties, qualities &
use.

SUCCESS ACADEMY

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Explain whether the following activities are manufacturing activities as per the provisions of the
Maharashtra Value Added Tax Act, 2002:
(1) Manufacturing of Ball Bearings
(2) Labelling
(3) Retreading of old tyres
(4) Reconditioning of machinery.
No.
(1)

Is it

Activity

Why

Manufacture

Manufacturing of Ball Bearings

Yes

A new product with distinct name,

properties & use comes into existence.

(2)

Labeling

No

No new product comes into existence.

(3)

Retreading of old tyres

No

No new product comes into existence.

(4)

Reconditioning of machinery

No

No new product comes into existence.

5. GOODS
Goods means every kind of movable property not being newspapers,
actionable claims, money, stocks, shares, securities or lottery tickets
and includes live stocks, growing crop, grass and trees and plants including
the produce thereof including property in such goods attached to or forming part
of the land which are agreed to be severed before sale or under the contract of sale.

GOODS
GOODS [S.2 (12)]

Includes
1
2
3

Excludes

Newspapers

Actionable Claims

Money

Stocks, Shares, Securities

Lottery Tickets

Every Kind of Movable Property

Livestock
Growing Crops, Grass, Trees,
Plants; their Produce

Things Attached to Land,

Severed Before / Under
Agreement

State whether the following are goods under the MVAT Act, 2002:
(1) Mechanical Equipment.
(2) Newspaper.
(3) Lottery Tickets.
(4) DVD Player.
(5) Actionable claim e.g. a debt (claim) for whose recovery a court case (actionable) can be filed
(6) Chickens.
(7) Vacant Land.
(8) Trucks.
(9) Import License.
(10) Power loom.
(11) Loom Hours.
(12) SIM card in Mobile Phone.
(13) Shares in Infosys Ltd.
Solution:
(1) Yes (2) No (3) No (4) Yes (5) No (6) Yes (7) No (8) Yes (9) Yes (10) Yes (11) No (12) Yes (13) No

SUCCESS ACADEMY

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State with reasons whether the following are Goods as per the provisions of Maharashtra Value
Added Tax Act, 2002:
(1) Newspapers
(2) Mango Trees
(3) Equity Share of Siemens Ltd.
(4) Residential Flat used for business
(5) Malai Kulfi
No.

Activity

Whether Goods

Reasons

(1)

Newspapers

No

Specifically excluded

(2)

Mango Trees

Yes

Specifically included

(3)

Equity Share of Siemens Ltd.

No

Specifically excluded

(4)

Residential Flat used for business

No

Immovable Property-excluded

(5)

Malai Kulfi

Yes

Goods

State with reasons whether the following are Goods as per the provisions of Maharashtra Value
Added Tax Act, 2002:
(a) Lottery Tickets
(b) Agricultural Plot
(c) Preference shares in SR steels Ltd.
(d) Import Licence
(e) One Hundred US Dollars ($ 100)
No.

Activity

Whether Goods

Reasons

(a)

Lottery Tickets

No

Specifically excluded

(b)

Agricultural Plot

No

Immovable Property

(c)

Preference shares in SR steels Ltd.

No

Shares not included

(d)

Import Licence

Yes

Can be sold

(e)

One Hundred US Dollars

No

Money Specifically Excluded

State with reasons whether the following are Goods as per the provisions of Maharashtra Value
Added Tax Act, 2002:
(a) Malai Paneer
(b) Equity Shares of TCS Ltd.
(c) Jackfruit Trees
(d) Lottery Tickets
(e) Import Licence
No.

Activity

Whether Goods

Reasons

(a)

Malai Paneer

Yes

Trade able Commodity

(b)

Equity Shares of TCS Ltd.

No

Specifically excluded

(c)

Jackfruit Trees

Yes

Specifically included

(d)

Lottery Tickets

No

Specifically excluded

(e)

Import Licence

Yes

Intangible Goods

SALE

Sale means a sale of goods made within the State for cash or deferred payment
or other valuable consideration but does not include a mortgage, hypothecation,
charge or pledge; and the words sell, buy and purchase,
with all their grammatical variations and cognate expressions,
shall be construed accordingly.

SUCCESS ACADEMY

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SALE
SALE [S. 2 (24)]

Means

Includes

[Prov. Of S. 2(24)]

[Expln. To S. 2(24)]

Sale of Goods, Within State,

For Consideration

But Excludes mortgage,

Hypothecation, charge, pledge

Sale within State

u/s 4 of CST Act

(a)

(b) (i) Transfer of Property in Goods,

Not Under Contract

(ii)

Transfer of Goods in s
Works Contract

(iii)

Transfer of right to
Use goods

(iv)

Delivery of goods on Hire

Purchases or Installment Sale

(v)

Supply of Goods by
AOP/BOI to members

(vi)

Supply of Food, Drinks, Article

Of Human Composition

Explain with reasons whether the following transaction can be considered as Sale under the
Maharashtra Value Added Tax Act, 2002:
(1) Transfer of goods from Head Office to Branch.
(2) Pledge of goods
(3) Gift of goods to charitable institution
(4) Sale of Motor car
No.

Transaction

Yes/No

Reasons

(1)

Transfer of goods from H.O. to Branch.

No

No transfer of ownership.

(2)

Pledge of goods

No

Excluded under definition Vide s.2(24)

(3)

Gift of jewellery to a friend

No

No consideration

(4)

Sale of Scrap

Yes

Transfer of ownership for consideration

Explain with reasons whether the following transactions can be considered as Sale under the
provisions of the Maharashtra Value Added Tax Act, 2002.
(1) Sale of Washing machines on Hire Purchases System
(2) Hypothecation of Goods
(3) Transfer of Goods from Head office to Branch
(4) Gift of Jewellery to a friend
(5) Sale of Scrap

SUCCESS ACADEMY
No.
(a)

Transaction

T.Y.B.Com.

Yes/No

Sale of Washing machines on Hire Purchases

Yes

System

Reasons
Specifically included under definition
Excluded under definition

(b)

Hypothecation of Goods

No

No transfer of ownership

(c)

Transfer of Goods from H.O. to Branch

No

No consideration involved

(d)

Gift of Jewellery to a friend

No

Valuable consideration

(e)

Sale of Scrap

Yes

received/receivable

Explain with reasons whether the following are Sales as per the provisions of MVAT Act, 2002.
(a) Sale of food stuff in College Canteen
(b) Computer servicing charges received
(c) Free samples provided by a Pharmaceutical Company
(d) Exchange of Mobile Handset
No.
(a)
(b)
(c)
(d)

Transaction
Sale of Food stuff in College Canteen
Computer Servicing Charges received
Free samples provided by a Pharmaceutical
Company
Exchange of Mobile Handset

Yes/No
Yes
No

Reasons
Sale of goods for consideration
No goods involved; only servicing

No
Yes

Goods supplied but no consideration

Goods for consideration

SALE PRICE
Sale price means the amount of valuable consideration paid or payable to a dealer
for any sale made including any sum charged for anything done by the seller in
respect of the goods at the time of or before delivery thereof,
other than the cost of insurance for transit or of installation,
when such cost is separately charged;

SALE PRICE

SALE PRICE[S.2 (25)]

11
1
Prov. Of S.2 (25)

2
Expln. To S.2 (25)

Consideration for Sale

Including Charges for anything

done to goods At /
Before Delivery

II

But Excludes Insurance for

transit / installation

Includes Excise / Custom /

Prohibition Duties
Excludes MVAT due to a seller

III

Includes Deposit
Incidental to Sale

SUCCESS ACADEMY

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COMPUTING SALE PRICE

Particulars

Rs.

Consideration

Rs.

xxx

Add :
Other Charges

Excise Duty

xxx

xxx

Customs Duty

xxx

Related Deposit

xxx

xxx

xxx

Less:
Transit insurance
Installation

xxx

MVAT

xxx

Total Sale Price

xxx
xxx

A product is sold @ Rs. 100 per unit. In a bill, 200 units were sold. The octroi is @ Rs. 2 per unit;
excise is @ Rs.12 per unit. The packing & forwarding charges were Rs. 500. Calculate the sale price.
Computing sale price
Particulars
A. Consideration
B. Excise (20012)
C. Packing
Sale Price

Rs.
20,000
2,400
500
22,900

Sales Tax will be charged on this sale price of Rs. 22,900 (and not on the basis price of
Rs. 20,000). Thus @ 10% the sales tax would amount to Rs.2, 290.
Compute Sales Price chargeable to Sales Tax under the MVAT Act, 2000.
(1) Manufacturing Cost of Rs. 1,000 units @ 500 per unit.
(2) Excise duty Rs. 200 per unit.
(3) Installation Charges Rs. 30,000.
(4) Transit insurance Rs. 6,750.
Calculation of Sale Price
Particulars
A. Cost of Goods (1,000 500)
B. Excise Duty (200 1,000)
Sale Price

Rs.
5,00,000
2,00,000
7,00,000

Sale Price Per unit Rs. 7, 00,000 1,000 = Rs. 7000

Transit Insurance & Installation Charges are not be included in sale price.

SUCCESS ACADEMY

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PURCHASE PRICE
Purchase Price means the amount of valuable consideration paid or payable by a person for any
purchase made including any sum charged for anything done by the seller in respect of the goods at the
time of or before delivery thereof, other than the cost of insurance for transit or of installation. When
such cost is separately charged
EXHIBIT: PURCHASE PRICE
PURCHASE PRICE [s. 2(20)]

Prov. Of S. 2(20)
1

Consideration for purchase

Including Charges for

anything done to goods
At or Before Delivery

But Excluding Insurance for

Transit/installation

Expln. to S. 2(20)
I

II

III

Includes Excise/Custom/
Prohibition Duties
Excludes MVAT due to a seller
Includes Deposit Incidental to
purchase

RE-SALE
Resale means a sale of purchase goods(i)
in the same form in which they were purchased, or
(ii)
without doing anything to them which amounts to, or results in, a manufacture, and the word
resell shall be construed accordingly.
TURNOVER OF SALES
Turnover of sales means the aggregate of the amounts of sale price received and receivable by a
dealer in respect of any sale of goods made during a given period after deducting the amount of(a) sale price, if any, refunded by the seller, to a purchaser, in respect of any goods purchased and
returned by the purchaser within the prescribed period; and
(b) deposit, if any, refunded in the prescribed period, by the seller to a purchaser in respect of any
goods sold by the dealer.
TURNOVER OF SALES
TURNOVER OF SALES [s. 2(33)]

Prov. Of S. 2(33)

Expln. to S. 2(33)

Total Sale Price Received/

Receivable

Less

II

a
b

Sale Returns within

6 months
Deposit refunded within
6 months

Price Receivable or Due &

Payable for HP/Sale on
installment/ Use of goods
Price of sales Before
Cancelling R.C.

SUCCESS ACADEMY

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Maharashtra Value Added Tax, 2002

MVAT: REGISTRATION
Steps

Particulars

(I)

Conditions
Importer
a) Taxable Sales/purchases at least Rs.10,000
b) Sales Turnover exceeds Rs.1,00,000
Any Other Persons
a) Taxable Sales/purchases at least Rs.10,000
b) Sales Turnover exceeds Rs.5,00,000

(II)
1.

Compute Total/Cumulative T/O

Rs.

Compute taxable Turnover

1.1 Local Purchases
1.2 Sales

2.

Compute Tax-free Sales Turnover (Sch.A)

3.

Compute Total Sales Turnover (1.2 +2)

(III)

Check Conditions

(1)

Taxable T/O (1.1 or 1.2) > 9,999?

Y/N
Yes/No

Importer
(2)

Total Sales T/O (3) > 1, 00,000?

Yes/No

Liable As Importer?

Yes/No

Not liable, if Condition (1) & (2) = No

Liable, if both Condition (1)& (2) = Yes
Non-Importer
(3)

Total Sales T/O (3) > 5,00,000

Yes/No

Liable As Non-Importer?

Yes/No

Not Liable, if Condition (1) & (3) = No

Liable, if both Conditions (1) & (3) = Yes
Note:
a) Taxable Purchase includes only local purchases taxable under MVAT.
b) Taxable Sales includes (i) local sales taxable vide S.7 under Schedule B,C,D or E and (ii)Sales not Subjected to
Tax u/s 8 e.g. Inter State Sales , exports etc.
c) Tax free goods means goods (under Schedule A) against which the rate of tax is shown to be Nil; and Taxable
Goods means goods other than tax free goods [ S.2(30)].

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1. From the Following information furnished to you by Mr. Deven regarding his purchases and sales transactions, find
out from which months he will be liable to pay tax as per the provisions of the MVAT Act, 2002.
Details of Purchases
Details of sales
Month
Tax Free
Taxable
Tax Free
Taxable
Goods Rs.
Goods Rs.
Goods Rs. Goods Rs.
April 2014 to December 2014
38,000
3,000
40,000
3,000
January 2015
10,000
15,000
February 2015
1,80,000
1,800
95,000
March 2015
3,000
11,200
30,000
2. From following information furnished to you by Mr. Care-free regarding his purchases and sales transactions, find
out from which months he will be liable to pay VAT as per provisions of the MVAT Act, 2002.

Month
April2014 to November2014
December 2014
January 2015
February 2015
March 2015
3.

Details of purchases
Tax Free
Taxable Goods
Goods
Rs.
RS.
40,000
4,000
60,000
4,000
30,000
3,000
40,000
70,000
20,000

Details of Sales
Tax Free
Taxable Goods
Goods
Rs.
Rs.
50,000
1,000
70,000
8,000
30,000
800
50,000
30,000
1,00,000
40,000

Mr. Hemant furnished the following information regarding his turnover of purchases and sales transactions. Find
out whether, as per the provisions of the Maharashtra Value added Tax Act; 2002.he is liable for
registrations (i.e. for payment of Maharashtra Value Added Tax).
Details of purchases (Local) Details of Sales made within the state
Months
Tax-Free
Taxable
.Tax Free
Taxable
Total
Goods(Rs.)
Goods(Rs.)
Goods (Rs.) Goods (Rs.)
(Rs.)
August 2014
1,03,000
5,000
80,000
6,000
86,000
February 2015
1,63,000
2,400
2,00,000
1,600
2,01,600
March 2015
1,83,000
2,400
1,60,000
1,600
1,61,600

4. Mrs. Anju who started business during 2014-2015 furnishes the following information regarding her purchases and
sales transactions.
Find out whether as per the provisions of the MVAT Act, 2002 she is liable for registration.
Purchases Within State
Sales Within State
Months
Taxable Goods Tax Free Goods Taxable Goods Tax Free Goods
Rs.
Rs.
Rs.
Rs.
April 2014
3,000
80,000
6,000
60,000
May 2014
6,000
1,80,000
3,000
10,000
June 2014
600
3,20,000
2,000
4,52,000
July 2014
3,000
70,000
1,600
20,000
5.

From the following information furnished to you by Mr. shaker, a new dealer regarding his purchase & sale
transactions, find out from which month he will be liable to pay tax as per the provisions of MVAT Act, 2002.
(A) Details of Purchases
(B) Details of Sales
Inside Maharashtra State
Import
Month
Tax Free
Taxable
Tax Free
Taxable
Tax Free
Taxable
Goods(Rs) Goods(Rs)
Goods(Rs)
Goods(Rs)
Goods(Rs) Goods(Rs)
April 2014
22,000
3,000
2,000
1,000
50,000
4,000
May 2014
30,000
2,000
8,000
60,000
2,000
June 2014
60,000
3,000
14,000
800
8,000
July 2014
1,12,000
3,600
2,000
1,000
80,000
2,000

6. The following information is furnished to you by Mr. Nihar, who started business in April 2014 regarding his
purchase and sale transactions. Find out in which months, he will be liable to pay tax as per the provisions of
MVAT Act, 2002.
Details of purchases
Details of Sales
Month
Taxable Goods Tax Free Goods Taxable Goods Taxfree Goods
Rs.
Rs.
Rs.
Rs.
April 2014 To Dec2014
38,000
4,000
40,000
5,000
January 2015
10,000
16,000
February 2015
80,000
4,000
90,000
March 2015
6,000
3,000
30,000
-

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7.

Raja, who started business in April 2014, is a manufacturer. From the following details find out from which
months she is liable for registration as per the provisions of the MVAT Act, 2002.
Purchases Taxable within Maharashtra Sales Taxable within Maharashtra
Month
Raw Material
April 2014
30,000
30,000
May 2014
36,000
40,000
June 2014
18,000
July 2014
5,60,000
5,40,000

8.

Mr. Amit is trader and importer who started business in April 2014. From the following information, find out on
which day he will be liable to pay tax as per provisions of the MVAT Act, 2002.
Purchase
Sales
Taxable Goods
Taxable Goods
Date
Within
Within Maharashtra Out of Maharashtra
Maharashtra
15-4-2013 ---------------30,000
20-4-2014 ---------------20,000
25-4-2014 ---------------6,000
28-4-2014 --------------40,000
30-4-2014 --------------90,000
05-5-2014 --------------24,000
08-5-2014 --------------30,000
20-5-2014 --------------31-5-2014 --------------40,000
9.

Dilip Enterprises is a Dealer who started business in April 2014.Find out from which month he will be liable for
registration as per the provisions of MVAT act, 2002.
Purchases
Sales
Month 2014
Taxable Tax-free Taxable Tax-free
April
-----------------500
2,500
500
1,000
May
----------------1,000
4,500
500
3,000
June
---------------2,000
6,500
1,500
10,000
July
----------------2,500
24,000
2,000
26,000
August
---------------3,000
25,000
4,000
28,000
September
----------------3,500
52,000
1,000
65,000
October
----------------4,500
72,000
2,500
75,000
November ----------------6,000
25,000
4,500
26,000
December
---------------4,500
80,000
6,000
2,92,000

10. Determine from which month Lalit, who started business in Apr. 2014 is liable registration under MVAT Act:
Local Purchases
Purchases from Gujarat
Sale inside state
Month
Taxable Tax-free
Taxable
Tax-free
Taxable Tax-free
1,000
May, 2014
----------- 30,000
4,000
500
15,000
5,000
4,000
June, 2014
----------1,000
5,000
500
20,000
4,000
6,000
July , 2014
----------20,000
1,000
22,000
10,000
2,000
4,000
Aug, 2014
---------40,000
2,000
1,000
5,000
5,000
3,000
Sept, 2014
----------- 10,000
10,000
5,000
22,000
8,000
4,000
Oct, 2014
----------2,000
8,000
4,000
40,000
5,000
11. From the following information furnished to you find out from which month the dealer will be liable to pay tax
as per provision of the MVAT Act, 2002.
Purchases
Sales
Month
Tax Free
Taxable
Tax Free
Taxable
Goods Rs. Goods Rs. Goods Rs. Goods Rs.
April, 2014 to December 2014
40,000
5,000
35,000
4,000
January,2015
20,000
20,000
February,2015
5,00,000
2,000
5,20,000
March, 2015
5,000
10,000
8,000
12. From the following information of Mr. Anil, who started business in April 2014, find out from which month he is
liable for registration as per the provision of MVAT Act, 2002.
Purchase within State
Sales within State
Month and year Taxable
Tax-free
Taxable
Tax free
Goods Rs. Goods Rs. Goods Rs. Goods Rs.
April 2014
2,000
70,000
5,000
50,000
May 2014
8,000
4,90,000
4,000
5,21,000
June 2014
1,000
30,000
4,000
50,000
July 2014
2,000
60,000
1,000
22,000

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13. Following information is given by Mr. Dhaval who started business on 1-4-2014 relating to his Sales and
Purchases. Find out whether he is Liable to Vat or Not.
Purchases within state
Sales within state
Month
Taxable goods Tax free goods Taxable goods Tax free goods
April to Dec.2014 4,000
62,000
3,000
59,000
January, 2015
1,000
29,000
2,000
48,000
February, 2015
-30,000
1,000
39,000
March, 2015
4,000
96,000
5,000
88,000
14. From the following information of Mr. Suhas who started business on 1-4-2014 find out whether he is liable for
registration or not as per the provisions of MVAT Act. Give reasons for your answer.
Details of Purchases
Details of Sales
Month
Taxable Tax free Taxable Tax free
Rs.
Rs.
Rs.
Rs.
April 2014 to October 2014
1,000
49,000
3,000
47,000
November 2014 to January 2015 4,000
46,000
5,000
55,000
February 2015
2,000
38,000
1,500
68,500
March 2015
4,000
3,76,000 4,500
3,75,500
15. M/S Apurva Industries started production of plastic goods from October, 2014. The following is available of its
activities. Find out from which month it is liable for registration under the MVAT Act, 2002.
Month
Tax Free
Taxable
Tax Free Taxable
Purchases Purchases
Sales
Sales
Rs.
Rs.
Rs.
Rs.
2014
October
1,200
14,000
2,000
1,000
November
8,000
2,400
--December
2,000
24,000
1,600
2,000
2015
January
1,600
16,000
2,000
18,000
February
1,200
20,000
4,400
15,600
March
3,200
18,000
1,000
19,000
16. Mr.Ponting is a new dealer. From the following information find out on which day he will be liable to pay tax.
Give reasons for your answer:
Purchase
Sales
Date
Taxable Tax Free Taxable Tax Free
02-04-13
10,000
15,000
--04-04-13
--6,000
14,000
10-04-13
20,000
40,000
5,000
10,000
20-04-13
--10,000
40,000
30-04-13
40,000
60,000
--02-05-13
--50,000
15,000
10-05-13
5,000
20,000
10,000
30,000
20-05-13
10,000
10,000
5,000
15,000
31-05-13
--10,000
10,000
01-06-13
15,000
3,15,000
20,000
3,20,000
03-06-13
5,000
10,000
20,000
30,000
17. Mr. Nishu, who started business in December 2014, furnishes the following information regarding his turnover
of purchases and sales purchases and sales transactions. You are requested to find out whether & from which
month, as per the provisions of the MVAT Act, 2002, he is liable for registration and paying VAT.
Details of Purchases
Details Of sales
Import
Local
Month
Taxable
Tax-free Taxable
Taxable Tax-free Goods
Total
Total
Goods
Goods
Goods
December 2014 1,60,000 2,000
2,400
1,64,000 2,00,000 6,000
2,06,000
January 2015
1,00,000 4,000
2,400
1,06,400
80,000 1,600
81,600
March 2015
1,80,000 3,000
5,000
1,88,000 1,60,000 1,600
1,61,000
18. Mr. Anand is a new dealer. Find out from which month he will be liable for registration as per the provisions of
the MVAT Act, 2002.
Month Year 2014
Purchases
Sales
Taxable Tax-free Taxable Tax-free
April To June -------------3,500
2,500
14,000
13,500
July
-------------2,500
2,000
26,000
24,000
August
-------------3,500
1,000
65,000
52,000
September
-------------3,000
4,000
28,000
25,000
October
-------------4,500
2,500
75,000
72,000
November
-------------6,000
4,500
3,26,000
2,25,000
December
--------------9,000
7,000
84,000
75,000

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19. From the following purchases and sales Register of A and Co. who commenced business recently, Find out from
when is the Co. Liable for registration, under MVAT Act, 2002.
Purchases Register
Date
Invoice No. Name of Party
Place
Rs.
Remarks
1-1-2015
101
Shetty, N.M.
Mumbai 50,000 Raw Materials Purchases Taxable
3-1-2015
201
V.N.Kamat
Nashik
5,000
Raw Materials - Taxable
8-1-2015
301
A.N. Reddy
Ratnagiri 30,000
Raw Materials - Taxable
11-1-2015
401
V.T. Shetti
Vashi
40,000
Raw Materials - Taxable
25-1-2015
601
G.N.Ravi
Valsad
27,000
Raw Materials - Taxable
Sales Register
Date
Invoice No. Name of Party
Rs.
Remarks
8-1-2015
01
Sneha T
15,000 Taxable
13-1-2015
02
Vicky
20,000 Taxable
22-1-2015
03
Avinash
60,000 Taxable
24-1-2015
04
Genu
30,000 Taxable
30-1-2015
05
Aparna
30,000 Taxable
Taxable goods are manufactured within the factory and delivered on the date of production.
20. Mrs. Divya commenced her business from 1st April 2014. From the following information furnished to you by her
regarding purchase and sales transactions, find out from which month she will be liable for Registration and to pay
tax as per the provisions of Maharashtra value Added Tax Act, 2002.
Details of Purchases
Details of Sales
Year & Month
Tax Free
Taxable
Tax Free
Taxable
Goods Rs. Goods Rs. Goods Rs. Goods Rs.
April To July 2014 --------------45,000
9,000
60,000
8,000
August 2014
-------------1,00,000
20,000
1,20,000
25,000
September 2014
-------------- 1,50,000
40,000
1,75,000
50,000
October 2014
-------------80,000
50,000
20,000
15,000
November 2014
-------------20,000
10,000
50,000
20,000
December 2014
-------------- 1,00,000
25,000
1,20,000
40,000
21. The following information regarding the turnover of purchases and sales transactions is submitted by Mr.
Hrishikesh, who started Business on 1st May, 2014. Find out whether as per the provision of the MVAT Act, 2002,
he is liable for registration and payment of Tax.
Details of Purchases
Details of Sales
Year & Month
Within state
Outside the State
Tax free
Taxable
2014
Tax free Goods Rs. Tax free Goods Rs. Taxable Goods Rs.
Goods Rs. Goods Rs.
May
90,000
4,000
5,500
85,000
4,000
June
1,02,000
3,500
3,500
1,50,000
3,500
July
1,50,000
6,000
2,500
1,75,000
1,500
Aug
1,10,000
2,500
4,000
1,00,000
3,000
Sept
1,75,000
1,500
3,000
2,50,000
3,500
22. Mr. Lele commenced his business on 1st Feb, 2014. Find out from which month he will be liable for Registration
and to pay as per the provisions of MVAT Act, 2002.
Purchases
Sales
Year & Month Taxable
Tax free
Taxable
Tax free
Goods Rs. Goods Rs. Goods Rs. Goods Rs.
Feb,2014
8,000
50,000
4,000
95,000
Mar,2014
3,000
32,000
5,000
45,000
Apri,2014
4,000
2,10,000
1,000
3,05,000
May,2014
5,000
1,75,000
6,000
1,90,000
June,2014
2,000
2,00,000
2,000
2,10,000
July,2014
4,000
2,50,000
5,000
2,75,000
Aug,2014
4,000
1,75,000
4,000
1,90,000
Sept,2014
6,000
1,80,000
8,000
2,20,000
23. Mr. Nene commenced his Business as a Manufacturer on 1st June, 2014. From the following particulars regarding
purchases and transactions, find out from which month he will be liable for Registration and to pay tax as per
the provisions of MVAT Act, 2002.
Details of Purchases
Details of Sales
Year & Month
Out of state
Within state
Taxable Goods Table Goods Tax free Goods Taxable Goods Tax Free
June 2014
2,000
3,000
10,000
12,000
5,000
July 2014
6,000
6,000
12,000
10,000
25,000
Aug 2014
2,000
_
10,000
15,000
10,000
Sept 2014
10,000
4,000
15,000
18,000
Oct 2014
3,000
3,000
18,000
20,000
12,000
Nov 2014
4,000
15,000
12,000
15,000
30,000
Dec 2014
5,000
3,000
20,000
10,000
15,000

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24. M/S Thatte & Co. commenced business on 19th March, 2014 from the following particulars regarding purchases
and sales Transactions, find out from which date they will be liable for Registration and to pay tax per the
provisions of MVAT Act, 2002.
Details of Purchases
Details of Sales
Month
Out of state
Within State
Taxable
Taxable Tax free Rs. Taxable Tax free Rs.
19-3-2014
7,000
12,000
16,000
7,.000
15,000
24-3-2014
8,000
6,000
12,000
10,000
12,000
28-3-2014
4,000
5,000
10,000
18,000
22,000
31-3-2014
5,000
8,000
18,000
12,000
2,000
03-4-2014
16,000
8,000
20,000
9,000
20,000
04-4-2014
5,000
4,000
12,000
500
28,000
10-4-2014
4,000
8,000
14,000
12,500
32,000
12-4-2014
5,000
20,000
10,000
16,000
25,000
15-4-2014
10,000
18,000
10,000
22,000
15,000
25. M/S Herwadkar and associates commenced business on 27th March, 2014. From the following particulars
regarding purchases and sales transactions, find out from which date he will be liable for Registration and to pay
tax as per the provisions of MVAT Act, 2002.
Purchases
Sales
Date
Taxable Tax free Taxable Tax Free
27-3-2014
6,000
18,000
8,000
24,000
28-3-2014
3,000
25,000
1,000
32,000
29-3-2014
1,500
80,000
500
95,000
2-4-2014
6,000
2,28,000
8,000
3,75,000
4-4-2014
4,000
1,75,000
1,000
1,05,000
7-4-2014
10,000 1,00,000 20,000 1,10,000
8-4-2014
6,000
1,20,000 15,000 1,05,000
10-4-2014
4,000
75,000
10,000 2,10,000
15-4-2014
5,000
1,10,000
5,000
1,28,000
26. M/S Kanade & Co. commenced business on 16th March, 2014 from the following particulars regarding purchases
and sales transactions: find out from which date they will be liable for Registration and to pay tax as per the
provisions of MVAT Act, 2002.
Details of Purchases
Details of sales
Month Out of State
Within State
Taxable
Taxable Tax free Taxable Tax free
16-3-13
11,000
6,000
12,000
8,000
15,000
19-3-13
10,000
3,000
13,000
21,000
11,000
22-3-13
8,000
2,000
14,000
10,000
20,000
30-3-13
7,000
4,000
18,000
5,000
6,000
03-4-13
15,000.
8,000
10,000
19,000
21,000
06-4-13
20,000
6,000
12,000
40,000
15,000
11-4-13
12,000
12,000
16,000
10,000
12,000
15-4-13
18,000
14,000
11,000
18,000
28,000

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MVAT COMPUTATION
No.

Month

Working

Schedule

% Rate

0%

1.00%

5.00%

20.00%

12.50%

Taxable GTO

Deduction

Taxable NTO

[ 2-3 ]

Tax

[1 X 4]

Purchase

Set-off in Tax

Reduction in Set off

Set off B/f

10

Net Set off

[7-8+9]

11

Final VAT or (Set off C/f)

[5-10]

Total

[ 1X6 ]

Note :1. In absence of details , rate of tax on sales & local purchase is taken @12.5%
2. CST on OMS purchases from Bihar / Gujarat is not available for set off.
3. It is presumed that VAT Return is to be made Monthly & not quarterly.
4. Schedule C sales are assumed to be Declared Goods taxable @5%.
5. Export sales are not taxable.
6. OMS sales are taxable under CST Act.
1. From the following information in respect of sales of schedule D goods liable to sales tax @ 20%, you are required
to find out total amount of sales-tax for the below mentioned months:
Months

Taxable Sales Rs.

April 2014 to January 2015

February 2015
March 2015

8,00,000
8,00,000
2,00,000

2. From the following information in respect of schedule E goods, you are required to find out total amount of sales
tax for the bellowed mentioned months.
Months
Taxable Sales Rs.
April 2014 to January 2015
4,00,000
February 2015
4,00,000
March 2015
4,00,000
3. Miss Shaifali, a registered dealer, furnishes you the following information regarding her turnover of purchases and
sales for May 2014.
(1) Local purchases- Rs. 10, 00,000.
(2) Purchases from Gujarat @2%-Rs. 3, 00,000.
(3) Purchases from Bihar @ 2%-Rs. 1 00,000.
(4) Sales of goods- Rs. 9, 00,000.
Calculate tax payable under MVAT Act, 2002.

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4. Mr. Harnamsingh, a registered dealer, furnishes you the information regarding his purchases and sales of goods.
Find out the liability of MVAT for the below mentioned months.
Within States
Month
Purchases
Sales
Rs.
Rs.
January 2015

3,00,000 7,00,000
February 2015

4,00,000 5,00,000
March 2015

5,00,000 4,00,000
5. Mr. Nagesh a registered dealer gives you the information of sales as detailed below:
Schedule
Period
A
B
Rs.
Rs.
June 2014
1,00,000
1,00,000
July 2014
1,10,000
50,000
August 2014
60,000
20,000
September 2014
2,00,000
60,000
Details of sale outside Maharashtra are as follows:

C
Rs.
80,000
20,000
50,000
1,80,000

Particulars
Rs.
June 2014

1,00,000
July 2014

80,000
August 2014

10,000
September 2014

2,00,000
Ascertain the sales tax liability of Nagesh under the MAVT Act, 2002.(Assume there is no set off claim)
6. Mr. Raj a registered dealer under Maharashtra Value Added Tax Act, 2002, furnished you the following details.
Calculate the amount of set off/tax payable.
Particulars
(a) Raw Materials Declared Goods (Schedule C)
(b) Machinery (Schedule E)
(c) Other (Schedule D 20%)

Rs.
2,00,000
3,00,000
30,000

7. A dealer requests you to compute his tax liability under MAVT Act, 2002 for March 2015 from the following
information.
Particulars
Rs.
Sales (Tax rate 20% as per schedule D)

35,000
Sales out of Maharashtra including CST 2%

36,000
Sales (Schedule C)

72,000
Labour Charges

1,10,000
Schedule A goods

6,32,000
Total

8,85,000
Sales return within 6 months of Schedule D goods having tax rate 20%

5,000
8. M/S Yogesh and Co. request you to compute liability under MVAT Act, 2002 for the month of January 2015
from the following information. M/S Yogesh & Co. is registered dealer under MVAT Act, 2002.
Particulars
Rs.
Sales of Schedule A goods

4,00,000
Sales of Schedule C goods

2,00,000
Sales of Schedule E goods

5,00,000
Sale out of Maharashtra

10,00,000
Labour charges received

4,00,000
Less: Sale return (within 6 months) of
Schedule A goods

20,000
Schedule E goods

50,000
9. Compute the sales tax liability as per the provisions of the MVAT Act, 2002 for the month of June, 2014. A
registered dealer, who deals in only Schedule A and Schedule C goods, gives you the following details of sales and
purchases.
Particulars
Sales (Rs.)
Purchase (Rs.)
(1)
Gross Turnover Total

4,00,000
2,50,000
(2)
Goods falling in Schedule A

2,50,000
1,00,000
(3) Total Sales of Schedule C goods include the Sales OMS of goods having the sales of Rs. 1, 25,000.
10. Veena & Co. asks you to compute their Taxable Turnover & Sales Tax Liability under the MVAT Act, 2002 for
the each month separately from the following information.
Sales:
Month
Schedule A
Schedule C
Schedule E
January 2015

12,000
6,000
30,000
February 2015

15,000
34,500
45,000
March 2015

6,000
18,000
30,000
33,000
58,500
1,05,000

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Sales Returns:
Month
January 2015
February 2015
March 2015

Schedule A
Nil
3,000
Nil
3,000

Schedule C
Nil
3,000
18,000
21,000

Schedule E
Nil
1,500
3,000
4,500

11. M/S Alfa & Co. request you to compute their Tax liability under MVAT Act, 2002, for the month of January
2015 from the following information:Particulars
Rs.
Sales (excluding Sales Tax) of Schedule E goods

2,50,000
Sale out of Maharashtra

1,50,000
Labour charges received

1,20,000
Sales of Schedule C goods

40,000
Sales of Schedule A goods

35,000
Total

6,20,000
Particular
Purchase of Schedule A goods
Purchase from Gujarat @ 2 % CST
Labour Charges paid
Purchase of Schedule C goods used in manufacturing
Set Off (b/f)

Rs.
5,00,000
2,00,000
1,00,000
50,000
30,0000

12. AB &Co., a registered dealer requests you to compute the liability of Sales Tax under the MVAT Act, 2002 from
the following information.
Month
Sales within the State
Sch.D
Set off
Tax
Available
Schedule A
ScheduleC Schedule E
January 2015
5,00,000 22,00,000
36,00,000
10,000
25,000
February 2015
4,00,000 40,00,000
10,00,000
15,000
40,000
March 2015
2,00,000
6,00,000
7,00,000
5,000
50,000
13. For M/s. AB & Co., compute the amount payable as tax under MVAT Act.
Sales
Schedule Schedule C
Month
A
Rs.
Rs.
January 2015
.. ... .
2,00,000
3,00,000
.. .
February 2015
1,00,000
4,00,000
..

.
March 2015
2,00,000
4,00,000

Schedule
E
Rs.
4,00,000
3,00,000
1,00,000

Purchase
ScheduleE
Rs.
4,00,000
3,00,000
2,00,000

14. Mr. Laxman furnishes you the details of purchase and sales. Compute the tax payable under MVAT Act, 2002 if
tax rate is sch. C = 4%, Sch. D = 20% and Sch. E = General.
Particular
Rs.
Purchases
Schedule C
.. . .
2,00,000
Schedule E
.. . .
3,00,000
Schedule D
.. . .
3,00,000
Sales
Export Sales
.. . .
7,00,000
Schedule C
.. . .
4,00,000
Schedule A
.. . .
2,00,000
Schedule E
.. . .
1,00,000
15. Mr. Narayan furnishes you with the details about the sales of various goods. Compute the amount of tax payable
as per Maharashtra Value Added Tax Act, 2002. The rates of tax are as follows:
Schedule C = 4%, Schedule B = 1% and Schedule D = 20%.
Particulars
Rs.
Sales
.. .
Schedule A
.. .
5,00,000
Schedule B
.. .
4,00,000
Schedule C
.. .
5,00,000
Schedule D
.. .
6,00,000
Schedule E
.. .
4,00,000

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16. Mrs. Smita, a registered dealer gives you the following information in respects of sales of schedule E. You are
required to find out total amount of Sales Tax for the following periods.
Local Sales
OMS Sales
Months
Rs.
Rs.
April 2014 to December 2014
... .
5,00,000
25,00,000
January 2015
... .
2,00,000
18,00,000
February 2015
... .
50,000
9,50,000
March 2015
... .
2,50,000
7,50,000
17. Mr. Jayasurya, a registered dealer gives you the details of sales for the month of Dec.2014 as follows:
Particulars
Rs.
1)
Sales of Goods covered by Sch. A
.. .
4,00,000
2)
Sales of Goods covered by Sch. B
.. .
2,00,000
3)
OMS Sales against from C @ 2%CST
.. .
1,50,000
.. .
4)
Sale of Schedule E Goods
1,00,000
Compute the Sales Tax liability for the month of Dec.2014.
18. M/s. Raj & Co. requests you to compute liability under MVAT Act, 2002 for month of February 2015, from the
following information. The firm is a registered dealer under MVAT Act, 2002.
Particulars
Rs.
Sale of Schedule A Goods
.. .
80,000
Sale of Schedule B Goods
.. .
40,000
.. .
Sale of Schedule C Goods
1,00,000
.. .
Sale out of Maharashtra
2,00,000
.. ...
Labour charges received
80,000
.. ...
Sale of Schedule E Goods
1,20,000
.. ...
Total
6,20,000
Less : Sales Returns : of Schedule A Goods
.. ...
4,000
Schedule E Goods
.. ...
6,000
Schedule C Goods
.. ...
10,000
Total
20,000
Sale off available for this month is Rs. 7,300.Sale figure are exclusive of Sale Tax.
19. Sensex Marketing furnishes you the following details about Purchase and Sales. Ascertain the tax payable as per
MVAT Act, 2002.
Particulars
Rs.
Purchases
3,00,000
August
.. .
4,00,000
September
.. .
5,00,000
October
.. .
Sales
May
.. ...
6,00,000
June
.. ...
5,00,000
August
.. ...
4,00,000
All the Goods belong to Schedule C.
20. Following are details of a registered dealer. Calculate the tax payable as per MVAT Act, 2002.
Purchases
Month
Schedule
Rate of Tax
May 2015
A
Nil
June 2015
C
5%
July 2015
E
12.5%
Sales
Month
Schedule
Rate of Tax
June 2015
A
Nil
July 2015
C
5%
August 2015
E
12.5%

Rs.
1,00,000
2,00,000
3,00,000
Rs.
2,00,000
3,00,000
4,00,000

21. Mr. Vinu, a Registered dealer of a product covered under Schedule E sell goods for Rs. 7, 50,000. The Purchase
required for the product is procured from Registered Dealer within the state as under:
Material X Covered by Schedule C Rs. 2, 00,000.
Material Y Covered by Schedule E Rs. 4, 00,000.
Mr. Vinu had an opening balance (Credit) in VAT Credit Receivable Account of Rs. 15,000.
Mr. Vinu had utilized material Y for manufacturing of Tax-free Goods.
Calculate the tax payable under MVAT Act, 2002.

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22. A dealer purchases the following Goods in Maharashtra during December, 2015.
Total
Input Tax
Net Purchases
Particulars
Rs.
Rs.
Rs.
5% VAT Goods
... ...
7,80,000
30,000
7,50,000
12.5% VAT Goods
... ...
15,75,000
1,75,000
14,00,000
Tax- free Goods
... ...
1,50,000
Nil
1,50,000
Additional Information:
1. VAT payable on sales made during the month is Rs. 3, 27,500.
2. During December 2015, the dealer utilized 5% VAT Goods costing Rs. 1, 50,000 as input for manufacturing Taxfree Goods.
3. On 1st December, 2015 there was an opening balance of Rs. 10,000 in VAT Receivable/set off Account.
4. The dealer has received a refund of Rs. 2,500 out of VAT Credit Receivable Account.
Prepare a statement of computation of Tax to be paid under the provisions of MVAT Act, 2002.
23. Calculate the Set off and Tax payable under MVAT Act, 2002 from the following details of August 2015 of M/s
Ragnekar Associates.
Particulars
Rs.
Local purchases from Registered Dealers
.. .
12,00,000
Purchases from Unregistered Dealers
.. .
2,00,000
Sale price of Goods
.. .
20,00,000
.. .
Inter State Stock Transfer
4,00,000
The ratio of stock transfer to total sales is 20%. M/s.Ragnekar Associates had an opening balance
(Credit) in VAT credit receivable account of Rs. 12,500.
24. M/s Phutane & Co. furnishes the following data.
You are required to compute the amount payable as Tax under, MVAT Act, 2002.
Sales
Purchases
Month
Sch. A
Sch. C
Sch. E
Sch. E
Rs.
Rs.
Rs.
Rs.
Oct.2015
1,00,000
4,00,000
3,20,000
4,00,000
Nov.2015
2,00,000
4,25,000
4,10,000
4,50,000
Dec.2015
2,50,000
6,00,000
2,20,000
5,50, 000
There was an Opening Balance of Rs. 2,500 in the VAT Credit Receivable Account on 1-10-2015.
25. M/S Bansode and Co. is a dealer in Chemicals. From the following information find out its Tax
liability for the month of September 2015 as per the provisions of MVAT Act. 2002.
Particulars
Rs.
Sales (Inclusive of Tax)
Schedule C Goods @ 5%
4,20,000
Schedule E Goods @12.5%
28,12,500
32,32,500

Purchases (Inclusive of Tax)

Schedule C Goods @ 5%
Schedule E Goods @12.5%
Schedule B Goods @1%

6,30,000
16,87,500
5,05,000
28,22,500

26. M/S Raje & Co. a Registered dealer under MVAT Act 2002, requests you to compute liability under MVAT Act
2002. For the month of March 2015 from the following information.
Sales
Rs.
Sales Return
Rs.
Schedule A Goods
1,00,000 Schedule A Goods
20,000
Schedule B Goods
50,000 Schedule E Goods
20,000
Schedule E Goods
2,20,000
Sales out of Maharashtra
1,50,000
Labour Charges Received
75,000
5,95,000
40,000
Purchases
Schedule A Goods
Schedule E Goods

Rs.

Purchase Return
Rs.
50,000 Schedule E Goods
30,000
3,50,000
4,00,000
30,000
There was an Opening Balance (credit) in VAT Credit Receivable Account of Rs. 12000 Account of
Rs. 12,000 Rates of VAT for Schedule A, B, and E Goods are NIL, 1% and 12.5% respectively.

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27. Shri .Deoshthalee a Registered Dealer under MVAT Act 2002 furnishes you the following details about purchases and
sales for the month of Dec. 2015. Ascertain Tax payable as per MVAT Act, 02.
Sales
Rs.
Sales Return
Rs.
Schedule A Goods
1,80,000 Schedule A Goods
5,000
Schedule B Goods
55,000 Schedule B Goods
8,000
Schedule C Goods
1,08,000 Schedule E Goods
6,000
Schedule E Goods
2,66,000
Purchases
Rs.
Purchase Return
Rs.
Schedule A Goods
1,20,000 Schedule C Goods
2,000
Schedule C Goods
1,62,000 Schedule E Goods
4,000
Schedule E Goods
2,04,000
Shri. Deoshthalee has an Opening Balance (Credit) in VAT Credit Receivable Account of
Rs.
4,500/-. Rates of Tax for Schedule A, B, C and E Goods are NIL, 1%, 5% and 12.5% respectively.
28. M/s Vaishampayan & Co. provides you the following information regarding sales/purchases for the
month of December 2015.
Particulars
Rs.
Sales
Schedule E Goods @ 12.5%
20,00,000
Schedule C Goods @ 5%
4,00,000
Purchases
Raw Materials Schedule C Goods @ 5%
Labour Charges
OMS Purchases
Schedule E components purchased @12.5%
Stationery Schedule E Goods @ 12.5%
Purchase of Machinery Schedule E @12.5%

24,00,000
6,00,000
1,50,000
2,00,000
8,00,000
25,000
8,00,000
25,75,000

Calculate the MVAT Payable / Refundable for the month of December 2015.
Given that there is a set off C/F from earlier month of Rs. 50,000.
29. From the following information provided by Mohan & Co. You are required to compute their tax liability under the
provisions of MVAT,2002 for the month of December,2015.
(a) Purchases (excluding tax)
Schedule C Goods
Rs.2,00,000
Schedule E Goods
Rs.3,00,000
(b) Sales (excluding tax)
Schedule C Goods
Rs.4,00,000
Schedule E Goods
Rs.10,00,000
Schedule A Goods
Rs.5,00,000
(c) The dealer, Mohan & Co. utilised Schedule C goods costing Rs.1,50,000(Net of tax) as input for Manufacturing
Schedule A goods.
(d) The tax rate for Sch.C goods is 5% , Schedule A goods is Nil & Schedule E goods is 12.50%.