INCREASE IN MVAT RATES FROM 5% TO 5.5% WEF 1ST APRIL 2016

The Government of Maharashtra has issued a notification dated 31st March 2016 to public regarding increase in Maharashtra Value Added Tax 2002 (MVAT Act) and Maharashtra Tax Rules 2005 (MVAT Rules).

The said amendment will be with effect from 1st April 2016.

This notification clearly mentions amendment in MVAT rates of commodity where:

It states an increase in the rate of tax from 5% to 5.5% for goods falling under Schedule C of the MVAT Act.

Certain list of declared goods mentioned in Section 14 in the Central Sales Tax Act 1956 have remained unchanged @ 5% some of which includes iron,steel,wire rods & wires, sheets, aviation turbine fuel,coal excluding charcoal,crude oil,Jute ,kerosene oil,oilseeds,fabrics,sugar, hoops, strips and skelp, both black and galvanized, hot and cold rolled plain and corrugated, in all qualities, in straight lengths and in coil form, as rolled and in rivetted condition, hides and skins, whether in a raw or dressed state.

The rate of tax on Schedule E goods has remained unchanged @ 12.5%. This schedule includes all those goods which are not included in any of the other schedules.

VAT rate for Mamography Machines for Breast Cancer,Hybrid Electric Buses and Battery operated,Handicrafts of bamboo excluding bamboo furniture,Retrofit kits used to modify the vehicles of the handicapped persons have been reduced to NIL rate of tax

VAT rate for sweet corn in a frozen state,sealed container or under a brand name except when served for consumption has been  reduced from 5.5% to NIL rate of tax.

VAT rate reduced to 5.5% for Barbed wire, wire mesh & Chain link. Sterile water for injection. Pyrolysis oil made from plastic scrape and organic waste. Repossessed motor vehicles, sold by banks and financial institutions. Pencil box, gum, glue sticks, stapler pins, tape dispenser, dusters & files. LED tube lights

The above changes shall impact the Central Sales Tax (CST) wherein goods are moving from Maharashtra to any other state of India and NO concessional rates of tax vide any declaration are availed by the dealers.

The below link (A) shows list of schedule A,B,C,D and E along with(B) MVAT Notification dated 30th March 2016  for changes in rate of tax from 5% to 5.5% and other amendments in Schedules.

CLICK BELOW FOR:

(A) Tax Rate Schedule 

(B)  MVAT Notification dt 30/03/2016 

The Schedule on the website is NOT updated with the new rates, one needs to compare the schedule with the notification to decide as to what’s the change of rate for the commodity one specifically deals in? It’s a good idea to approach an expert consultant before concluding in this case on what shall be finally charged from 1st of April 2016.

For more information on the above blog please ask expert partner at [email protected]

 

Amit Doshi

About Amit Doshi

Amit is founder and chairman of APD. He has a vast industry wide exposure of around 30 years. He was co-opted member of Indirect Taxes committee of ICAI. Amit acted as convenor for Ghatkopar CA Study Circle of WIRC. He has presented papers and contributed to union budget publication on various topics in conferences organized by professional bodies. Trained more than 100 CA Students. His expertise lies in Consultancy on Value Added Tax (VAT), Handling Scrutiny, Appeals, and representation matters with the various regulatory and taxation authorities.

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