Project Report on Mvat
CONTENT
Sr. No.
Topics Covered
Page No.
1
Section - I Introduction to Value Added Tax.
1 - 12
2
Section - II Value Added Tax in Maharashtra.
13
A. Introduction.
B. Registration under Value Added Tax.
C. Explaining Value Added Tax.
D. Calculating Tax Liability.
E. Filing of Return and Paying Tax.
F. Records and Accounts.
G. Business Audit.
H. Appeals.
I. Tax Payer Service.
J. Recovery, Offences and Penalties.
14 - 16
17 - 21
22 - 27
28 - 36
37 - 44
45 - 48
49 - 51
52 - 56
57 - 61
62 - 66
3
Section - III Appendix.
67 - 69
4
Section - IV Conclusion.
70
5
Section - V Bibliography.
71
WHAT IS Value Added Tax?
Value Added Tax is a broad-based commodity tax that is levied at multiple stages of production. The concept is akin to excise duty paid by the manufacturer who, in turn, claims a credit on input taxes paid. Excise duty is on manufacture, while VAT is on sale and both work in the same manner, according to the white paper on VAT released by finance minister Chidambaram. The document was drawn up after all states, barring UP, were prepared to implement VAT from April. It is usually intended to be a tax on consumption, hence the provision of a mechanism enabling producers to offset the tax they have paid on their inputs against that charged on their sales of goods and services. Under VAT revenue is collected throughout the production process without distorting any production decisions.
WHY VAT IS PREFERRED OVER SALES TAX?
While theoretically the amount of revenue collected through VAT is equivalent to sales tax collections at a similar rate, in practice VAT is likely to generate more revenue for government than sales tax since it is administered on various stages on the production - distribution chain. With sales tax, if final sales are not covered by the tax system e.g. due to difficulty of covering all the retailers, particular commodities may not yield any tax. However, with VAT some revenue would have been collected through taxation of earlier
Sr. No.
Topics Covered
Page No.
1
Section - I Introduction to Value Added Tax.
1 - 12
2
Section - II Value Added Tax in Maharashtra.
13
A. Introduction.
B. Registration under Value Added Tax.
C. Explaining Value Added Tax.
D. Calculating Tax Liability.
E. Filing of Return and Paying Tax.
F. Records and Accounts.
G. Business Audit.
H. Appeals.
I. Tax Payer Service.
J. Recovery, Offences and Penalties.
14 - 16
17 - 21
22 - 27
28 - 36
37 - 44
45 - 48
49 - 51
52 - 56
57 - 61
62 - 66
3
Section - III Appendix.
67 - 69
4
Section - IV Conclusion.
70
5
Section - V Bibliography.
71
WHAT IS Value Added Tax?
Value Added Tax is a broad-based commodity tax that is levied at multiple stages of production. The concept is akin to excise duty paid by the manufacturer who, in turn, claims a credit on input taxes paid. Excise duty is on manufacture, while VAT is on sale and both work in the same manner, according to the white paper on VAT released by finance minister Chidambaram. The document was drawn up after all states, barring UP, were prepared to implement VAT from April. It is usually intended to be a tax on consumption, hence the provision of a mechanism enabling producers to offset the tax they have paid on their inputs against that charged on their sales of goods and services. Under VAT revenue is collected throughout the production process without distorting any production decisions.
WHY VAT IS PREFERRED OVER SALES TAX?
While theoretically the amount of revenue collected through VAT is equivalent to sales tax collections at a similar rate, in practice VAT is likely to generate more revenue for government than sales tax since it is administered on various stages on the production - distribution chain. With sales tax, if final sales are not covered by the tax system e.g. due to difficulty of covering all the retailers, particular commodities may not yield any tax. However, with VAT some revenue would have been collected through taxation of earlier
Bibliography: 1.Value Added Tax - By Sales Tax Department. 2.www.google.com 3.www.tax4india.com 4.www.vat.maharashtra.gov.in