{"id":406,"date":"2013-12-29T00:00:00","date_gmt":"2013-12-28T18:30:00","guid":{"rendered":""},"modified":"2016-01-12T14:33:18","modified_gmt":"2016-01-12T09:03:18","slug":"voluntary-registration-vs-compulsory-registration-under-mvat","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/mvat-cst\/voluntary-registration-vs-compulsory-registration-under-mvat\/","title":{"rendered":"Voluntary registration vs compulsory registration under mvat"},"content":{"rendered":"<p style=\"text-align: justify;\">Every dealer is require to get register compulsory under MVAT, whose turnover is exceeds the prescribe limit as mentioned under section 3 (4) of MVAT Act. The turnover limit for the purpose of MVAT registration is given below:<\/p>\n<p style=\"text-align: justify;\"><strong>Category of Dealer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover<br \/>\nof Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of taxable<br \/>\ngood purchase or sold<\/strong><\/p>\n<p style=\"text-align: justify;\">Importer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 1, 00,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 10,000<\/p>\n<p style=\"text-align: justify;\">Other than Importer\u00a0\u00a0 \u00a0\u00a0 \u00a0 \u00a0 Rs. 5, 00,000<span style=\"color: #ff6633; background-color: #ffffff;\">* <\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs.2,00,000<\/p>\n<p style=\"text-align: justify;\">Here importer means the dealer who purchases the good outside the state of Maharashtra. The turnover limit of<br \/>\nRs. 1 lack or Rs. 5* lacks is including turnover of all sales whether taxable or tax free.\u00a0 However turnover limit of Rs. 10, 000 is in respect of taxable goods whether purchase<br \/>\nor sold.<\/p>\n<p style=\"text-align: justify;\">The dealer can also get registered under MVAT voluntarily if he does not cross the turnover limit under<br \/>\nsection 3 (4). But for voluntary registration dealer is require to pay Rs. 25,000 as a deposit and Rs. 5,000 as a fee.<\/p>\n<p style=\"text-align: justify;\"><strong>Under which circumstances voluntary registration is beneficial:-<\/strong><\/p>\n<p style=\"text-align: justify;\">1)\u00a0\u00a0\u00a0\u00a0\u00a0 When dealer is doing manufacturing activity and\u00a0require to install plant and machinery. It is always beneficial to get register under MVAT as immediately after the voluntary registration he can claim the set off on the plant and machinery purchased by him. If voluntary registration is not done; VAT paid on plant and machinery purchase will be in vain as dealer can not claim the set off during unregistered period.<\/p>\n<p style=\"text-align: justify;\">2)\u00a0\u00a0\u00a0\u00a0\u00a0 When dealer is trader and he want to purchase the large quantity of goods for the trading purpose before the sales starts. In such situation; voluntary registration is necessary as after registration dealer can claim the set off of<br \/>\nthe goods purchase.<\/p>\n<p style=\"text-align: justify;\"><strong>Under which circumstances compulsory registration is beneficial:-<\/strong><\/p>\n<p style=\"text-align: justify;\">When dealer is the small trader and he is not going to purchase the bulk material (say less than Rs. 5, 00,000), then there is no need for voluntary registration. The benefits of compulsory registration are as below:-<\/p>\n<p style=\"text-align: justify;\">1)\u00a0\u00a0\u00a0\u00a0\u00a0 Dealer is not required to pay the deposit of Rs. 25,000 and registration fees require to pay is Rs.500 only.<\/p>\n<p style=\"text-align: justify;\">2)\u00a0\u00a0\u00a0\u00a0\u00a0 Dealer<br \/>\ncan claim initial exemption of tax liability on sales up to Rs. 5, 00,000* under section 3 (2) of MVAT Act.<\/p>\n<p style=\"text-align: justify;\">MVAT<br \/>\nRegistration is compulsory if turnover exceeds prescribe limit as mention above. In default of non-registration penal provisions of MVAT act are applicable.<\/p>\n<div style=\"text-align: justify;\"><\/div>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">* Turnover limit of Rs. 5 lakh is increased to 10 lakh with effect from 26th June 2014.<\/span> Kindly refer following link for more details:\u00a0<a href=\"https:\/\/taxclick.org\/type\/mvat-cst\/amendments-in-maharashtra-value-added-tax-2002-in-additional-budget-2014-2015\" target=\"_blank\">https:\/\/taxclick.org\/type\/mvat-cst\/amendments-in-maharashtra-value-added-tax-2002-in-additional-budget-2014-2015<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every dealer is require to get register compulsory under MVAT, whose turnover is exceeds the prescribe limit as mentioned under section 3 (4) of MVAT Act. The turnover limit for the purpose of MVAT registration is given below: Category of Dealer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of taxable good purchase or sold Importer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 1, 00,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 &#8230; <a title=\"Voluntary registration vs compulsory registration under mvat\" class=\"read-more\" href=\"https:\/\/taxclick.org\/type\/mvat-cst\/voluntary-registration-vs-compulsory-registration-under-mvat\/\" aria-label=\"More on Voluntary registration vs compulsory registration under mvat\">Read more<\/a><\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7],"tags":[102],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Voluntary registration vs compulsory registration under mvat - All About Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxclick.org\/type\/mvat-cst\/voluntary-registration-vs-compulsory-registration-under-mvat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Voluntary registration vs compulsory registration under mvat - All About Finance\" \/>\n<meta property=\"og:description\" content=\"Every dealer is require to get register compulsory under MVAT, whose turnover is exceeds the prescribe limit as mentioned under section 3 (4) of MVAT Act. The turnover limit for the purpose of MVAT registration is given below: Category of Dealer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of taxable good purchase or sold Importer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 1, 00,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ... 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IFRS (ACCA, UK). He is practicing Chartered Accountant since 2004. He can be reached at ca.rajendra.shete@gmail.com. CA Rajendra Shete is the author of the book The Rules and Red Flags. - To know more about the book pls visit !\",\"sameAs\":[\"https:\/\/rajendrashete.in\"],\"url\":\"https:\/\/taxclick.org\/author\/ca-rajendra-shete\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Voluntary registration vs compulsory registration under mvat - All About Finance","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/taxclick.org\/type\/mvat-cst\/voluntary-registration-vs-compulsory-registration-under-mvat\/","og_locale":"en_US","og_type":"article","og_title":"Voluntary registration vs compulsory registration under mvat - All About Finance","og_description":"Every dealer is require to get register compulsory under MVAT, whose turnover is exceeds the prescribe limit as mentioned under section 3 (4) of MVAT Act. The turnover limit for the purpose of MVAT registration is given below: Category of Dealer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of taxable good purchase or sold Importer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 1, 00,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ... 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IFRS (ACCA, UK). He is practicing Chartered Accountant since 2004. He can be reached at ca.rajendra.shete@gmail.com. CA Rajendra Shete is the author of the book The Rules and Red Flags. - To know more about the book pls visit !","sameAs":["https:\/\/rajendrashete.in"],"url":"https:\/\/taxclick.org\/author\/ca-rajendra-shete\/"}]}},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"yarpp-thumbnail":false},"uagb_author_info":{"display_name":"CA Rajendra Shete","author_link":"https:\/\/taxclick.org\/author\/ca-rajendra-shete\/"},"uagb_comment_info":16,"uagb_excerpt":"Every dealer is require to get register compulsory under MVAT, whose turnover is exceeds the prescribe limit as mentioned under section 3 (4) of MVAT Act. The turnover limit for the purpose of MVAT registration is given below: Category of Dealer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of Sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Turnover of taxable good purchase or sold Importer\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 1, 00,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0&hellip;","_links":{"self":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts\/406"}],"collection":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/comments?post=406"}],"version-history":[{"count":0,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/posts\/406\/revisions"}],"wp:attachment":[{"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/media?parent=406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/categories?post=406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxclick.org\/wp-json\/wp\/v2\/tags?post=406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}