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.

To obtain Maharashtra VAT Registration, visit IndiaFilings.com

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Frequently Asked Questions

Common questions about Maharashtra VAT Registration and Tax Rates Services.

For businesses in Maharashtra, VAT registration is mandatory if the annual sales turnover exceeds Rs. 5 lakhs. However, for importers, VAT registration is mandatory if the annual turnover crosses Rs. 1 lakh.

Yes, businesses can opt for voluntary VAT registration in Maharashtra under Section 16 of the Maharashtra Value Added Tax Act, 2002, by paying a security deposit of Rs. 25,000 to the government treasury.

Upon VAT registration in Maharashtra, a Tax Identification Number (TIN) is allotted by the registering authority. This TIN number serves as the dealer's VAT registration number, as well as their CST (Central Sales Tax) registration number.

Maharashtra has five different VAT rate schedules: Schedule A for exempt goods, Schedule B for 1% or 1.1% VAT, Schedule C for 2% to 5% VAT, Schedule D for 20% and above VAT, and Schedule E for 12.5% VAT on goods not covered in other schedules.

The frequency of filing Maharashtra VAT (MVAT) returns depends on the tax liability in the previous year. Dealers with Rs. 0 lakhs or more tax liability file monthly returns, those with Rs. 1 lakh to Rs. 10 lakh file quarterly returns, and those with less than Rs. 1 lakh file half-yearly returns.

The due date for filing MVAT returns is within 21 days after the end of the previous month for monthly filers, within 21 days after the end of the quarter for quarterly filers, and within 30 days after the end of six months for half-yearly filers.

The due date for making Maharashtra VAT payments coincides with the due date for filing MVAT returns, based on the frequency of filing (monthly, quarterly, or half-yearly).

No, there is no difference between VAT, TIN, and CST registration in Maharashtra. The VAT registration serves as the dealer's TIN (Tax Identification Number) and CST (Central Sales Tax) registration.

Goods listed in Schedule A of the Maharashtra VAT Act, such as manually operated agricultural implements, electricity, firewood, and salt, are exempt from VAT.

Businesses can obtain Maharashtra VAT registration by visiting the IndiaFilings.com website, as mentioned in the article.