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The system of Value Added Tax (VAT) has been implemented, in the State of
Maharashtra, w.e.f. 1st April, 2005. The study is being done
5. The main objective of this project report is to analyze and study about M-VAT.
The system of Value Added Tax (VAT) has been implemented, in the State of
Maharashtra, w.e.f. 1st April, 2005.
The Maharashtra Sales Tax on the Transfer of Property in goods involved in the execution of
Works Contract (Re-enacted) Act, 1989.
The Maharashtra Sales Tax on the Transfer of the Right to use any goods for any Purpose Act,
(Lease Tax) and
Thus all transactions of purchase and sales of goods, within the State of Maharashtra, which
used to be covered under the above Acts, till 31st March 2005, will now be governed by the
Maharashtra Value Added Tax Act, 2002, (MVAT), as amended by Maharashtra Value Added
Tax Amendment Bill,2005.
There will be only one tax; i.e., VAT no separate Purchase Tax, Turnover Tax, Resale Tax,
Surcharge, Works Contract Tax, and Lease Tax etc. No Concessional Forms such as Form 14,
14A, 14B, 13A and BC Form etc.,
INTRODUCTION
(1) This Act may be called the Maharashtra Value Added Tax Act, 2002.
2. Definitions:-
(1) agriculture, with all its grammatical variations and cognate expressions,
includes floriculture, horticulture, the raising of crops, grass or garden
produce, and also grazing; but does not include dairy farming, poultry
farming, stock breeding, the mere cutting of wood or grass, gathering of fruit,
raising of man-made forests or rearing of seedlings or plants;
Explanation.
(2) capital asset shall have the same meaning as assigned to it, from time to
time, in the Income Tax Act, 1961 (43 of 1961), but the said expression shall
not include jewellery held for personal use or property not connected with the
business;
(c) by servants on wages payable in cash or kind (but not in crop share), or
by hired labour under ones personal supervision or the personal
supervision of any member of ones family.
TAXES PAYABLE -
Subject to the provisions of this Act and rules, there shall be paid by every dealer
or, as the case may be, every person, who is liable to pay tax under this Act, the tax or
taxes liable in accordance with the provisions of this Act and Rules.
Subject to the other provisions of this Act, and the conditions or exceptions, if any, set
out against each of the goods specified in column (3) of Schedule A, no tax shall be
payable on the sales of any goods specified in column (2) of that schedule.
Where any goods are sold and such goods are packed in any material, the tax shall
be leviable under section 6 on the sales of such packing material, whether such
materials are separately charged for or not, at the same rate of tax, if any, at which tax
is payable on the sales of the goods so packed.