1. Maharashtra Value Added Tax (MVAT)
VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is the tax paid
by the producers, manufacturers, retailers or any other dealer who add value to the goods and that
is ultimately passed on to the consumer. VAT has been introduced in India to ensure a fair and
uniform system of taxation. It is an efficient, transparent, revenue-neutral, globally acceptable and
easy to administer taxation system. It benefits the common man (consumer), businessman and the
Government.
VAT makes the tax structure simple, hassle-free and export-oriented. The integration of VAT with
Tally will help you in the smooth functioning of your business and eliminate the complications that
might otherwise arise in VAT.
VAT, a globally recognized sales tax system, has been introduced in more than 130 countries
VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax Act
(MVAT Act), 2002, supported by Maharashtra Value Added Tax Rules (MVAT Rules). VAT is levied on
sale of goods including intangible goods.
Rate of VAT applicable in the country is between 4 % to 12.5%.
Background of VAT
· Earlier the State of Maharashtra had introduced VAT in respect of very few specified items under
the old Bombay Sales Tax Act.
· The entire Bombay Sales Tax Act and certain related taxes got replaced by the Maharashtra Value
Added Tax Act (MVAT Act), 2002 with effect from 1st April 2005
· VAT, a globally recognized sales tax system, has been introduced in more than 130 countries
· VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax Act
(MVAT Act), 2002, supported by Maharashtra Value Added Tax Rules (MVAT Rules). VAT is levied
on sale of goods including intangible goods.
Applicalibilty of VAT
Goods Rate Items Covered
Schedule A Nil Tax free Goods
Schedule B 1% Gold , Silver, Precious Metals &
Stones
Schedule C 4% Goods used for Industrial Input
Schedule D 20% Foreign Liquor, Indian Liquor,

2. Molasses, High Speed Diesel Oil
Schedule E 12.5% Remaining
Schedule C the VAT is 5% applicable in the current situation.
Definitions
Goods
“Goods” means every kind of moveable property
Does not include: Newspapers, actionable claims, money, stocks, shares, securities or lottery tickets
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.
Dealer
“Dealer” refers to a person who buys or sells goods within the state for a valuable consideration.
Importer
“Importer” means a dealer who brings any goods into State or to whom any goods are dispatched
from any place outside State
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
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.
Sales Price

3. “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.
Payment
VAT needs to be paid on a monthly, Quarterly or half yearly basis.
Due Date for Payment
Monthly/ Quarterly Payment - 21 Days
Half Yearly – 30 Days
In case of late Payment the Penalty is Rs. 5000/-
VAT Applicability
Importer
· The annual Sales turnover should be above Rs. 1,00,000
· In a year the value of the taxable goods sold or purchased should be more than Rs. 10,000/-
Other
· The annual Sales turnover should be above Rs. 5,00,000
· In a year the value of the taxable goods sold or purchased should be more than Rs. 10,000/-