MVAT/Sales tax registration procedure walkthrough

We all encounter Situations which require a Careful adherence to the Statutory requirements in order to get required registrations/meet timely & orderly compliance’s of Statutes affecting us. Starting a series on write-ups of the statutory bumps I encounter during the course of daily Business. These Walkthroughs are aimed at help the interested gain a basic insight of what would be the position when one intends to comply applicable statutory requirements.

  This information is intended to help form initial view of the required & may be prone to errors.

MVAT/Sales Tax registration.

a) Registration is required by,

1. Mandatory registration: Where the Sales turnover from 1st April of the year first crosses Rs.5,00,000/- and value of taxable goods sold or purchased by him during the year is not less than Rs.10,000/-

2.Voluntary registration:Any person may apply for voluntary registration by depositing Rs.25,000/- towards taxes in advance.This amount shall be adjusted against taxes payable by him during the year. Any amount of advance not adjusted during the year will be refunded back to the Dealer.[A person desirous of Issuing VAT Invoice for seeking input Vat credit may opt for this scheme]

b) Registration Required?Apply within..

Person requiring to be registered mandatorily must apply within 30 days from the day on which his turnover crosses the specified limit. The successor or assignee of the business must apply within 60 days of the date of preceding registered dealer or within 60 days of transfer of business.  An applicant has and can to collect taxes from purchaser as soon has he crosses the specified limit. He need not to wait for making application and allotment of registration number. After the registration number, also called TIN (Taxpayers Identification Number) is allotted he has to file periodic return of sale and deposit the amount of tax collected/payable along with the Challan.

c) Procedure Apply on the mahavat website via e-registration [ All application for Registration in Form 101 shall be made online at mahavat website. Online application have to be made after 1-10-2009. Paper application will not be accepted after this date]  MVAT WEBSITE

The Details:

The applicant : The application for registration to be signed by :

1.Proprietary Business: Proprietor

2.Partnership firm : Any partner

3. Company : Any Director/Manager/Authorized person

4. HUF : Karta of HUF

Fees Payable: Fee to be paid in challan No.210 to any nominated Nationalized Banks.

Registration Fee : Rs. 500/- (For Regular Registration)

: Rs.5000/ (For Voluntary Registration)

Deposit : Rs. Nil (For Regular Registration)

: Rs.25000/-(For Voluntary Registration)

Documents required :

1. Proof of PAN i.e Copy of Income Tax Assessment Order having PAN mentioned on it or copy of PAN card. In case of Proprietary business, PAN of Proprietor is required ; in case of partnership business,: PAN of partnership firm and of all partners is required,

2. Two latest Passport sized Photographs of the Applicant

3. Demand Draft for payment of Registration Fees and deposit of advance sales-tax in case of voluntary registration, demand draft shall be in name of “State Bank of India A/c. MVAT” and payable at respective location. The demand draft for registration shall be for Rs.500/- in case of Mandatory registration and for Rs.5,000/- in case of Voluntary Registration. Deposit for voluntary registration is Rs.25,000/-

4.Application must be in business name even for proprietary business

5.Leaf of cancelled cheque as proof of Bank Account.

6.Proof of constitution of business, like Copy of partnership deed in case of partnership firm, Copy of Memorandum of Association and Articles of Association in case of company and in case of other persons necessary document of formation/constitution.[No proof required for proprietary business]

7.Proof of permanent residential address : at-least any two of the following

a. Copy of ration card,

b. Copy of passport,

c. Copy of driving licence,

d. Copy of election photo identity card,

e. Copy of property card or latest receipt of property tax of Municipal Corporation / Council / Gram-panchayat as the case may be,

f. Copy of latest paid electricity bill in the name of the applicant. In case of partnership firm, proof of residence has to be provided for all partners shall be required and  in case of body corporate, proof of residence of applicant shall be only required.

8. Proof of place of business :

a) In case of ownership premises, Proof of ownership of premises, viz. copy of property card or ownership deed or agreement with the builder or any other relevant documents.

b) In case of tenant / sub-tenant : Proof of tenancy / sub tenancy like copy of tenancy agreement or rent receipt or leave and licence or consent letter, etc

9. Statement of Turnover in case of mandatory registration,

10. Introduction from either,

a.Chartered accountant,

b..Other MVAT registered dealer who is holding valid registration certificate continuously for five year,

c Advocate,

d.cost accountant.

e.Sales Tax Practitioner

[Disclaimer: All details mentioned herein are from a ‘student in the learning’ perspective,the same may not be in sync with recent updates & advancements. Hence final reference on any related issue be made to prescribed websites/Books]


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