Registration under

MVAT Act
- Ms. Dhwani Mainkar
 INCIDENCE AND LEVY OF MVAT

• ¨As per the provisions of MAHARASHTRA VALUE ADDED TAX ACT,

2002 (MVAT), a dealer is liable to pay tax on the basis of turnover of sales
within the state.
DEALERS LIABLE TO PAY TAX (SEC 3)
• 1.The dealers holding a valid registration certificate under the earlier laws, whose turnover of either
sales or purchase exceeds the specified limits during the F.Y 2004-05.
• 2.The dealers holding a valid registration certificate under the earlier laws, whose turnover of either
sales or purchases has not exceeded the specified limits during the F.Y 2004-05, but who have opted
to continue their registration certificate.
• 3.New dealers whose turnover of sales exceeds the prescribed limits during any year, commencing
on or after 1st April 2005.
• 4.A successor in business of any dealer shall become liable to pay tax on and from the date of
succession.
• 5.A dealer applying for voluntary registration.
 Why to obtain Registration Certificate? 

• Obtaining of registration certificate is statutory obligation of every dealer,

who is liable to pay tax under the Act.
• It empowers the dealer to collect tax.
• A registered dealer gets the benefits of set off (input tax credit)
• Business without registration invites penalty/prosecution.
 Who should apply for the
Registration?
• The dealer who attains or crosses prescribed turnover of purchase or sale
should apply for registration under VAT Act within 30 days from the date
on which turnover crossed the  prescribed limit.
• ¨Once a dealer exceeds the prescribed turnover and fulfils the conditions
as mentioned in table below, then the liability to pay taxes under the Act
commences from the time of transaction by which the turnover exceeds
the prescribed limit.
 What happens if not applied in time for
registration?
• When a dealer does not apply within 30/ 60 days from the date of
exceeding the prescribed turnover of purchases or sales than certificate of
registration will be issued with effect from the date of uploading of the
application. Therefore, from the date of starting of business till the date of
uploading of the application, the dealer will be treated as unregistered.
• ¨Penalty for un-registered dealers: If dealer does not apply in time and
remains unregistered, it is an offence under the Act.
 Registration – Section 16

• Every dealer who becomes

liable to pay tax under the
provisions of MVAT , shall
apply electronically for
registration to the prescribed
authority, in form 101, within
30 days from the date of such
liability.
TURNOVER LIMITS FOR THE PURPOSE OF REGISTRATION
[SEC.3(4) ]
 Effect of Delay
• If a dealer applies for registration within the prescribed time of 30 or 60 days,, registration certificate
will be granted form the date of liability, otherwise from the date of application. If there is an interval
between the date of making application and day original date of liability and the date of registration,
there will following effect:
• (a)
• (b) (c)
• the dealer would be unregistered dealer liable for paying penalty for delay in registration a
• Dealer cannot claim set off
• subsequent dealers purchasing goods from him shall not be entitled to claim set off in respect of tax
paid to such dealer
 Procedure for Registration
• Application in Prescribed form
• An application for registration (VAT TIN) is to be made in Form No.101 along with the required documents. An application incomplete in
any respect shall not be considered to be an application and shall not be accepted. (Application will not be accepted by the system if all
the fields are not filled up.) Now all applications for registration have to make electronically. Payment of fee has to be made
electronically and deposit in case of Voluntary registration will be made through a Demand Draft. Otherwise the procedural requirements
are same.
• 2. Common TIN number for all places
• Where a dealer has more than one place of business, he shall make a single application in respect of all such places specifying one place
as the principal place of business. The application shall be submitted to the registering authority having jurisdiction over the principal
place of business. One TIN number will be issued for whole state of Maharashtra, covering all the places of business of the dealer.
Subsequently, if there is a shifting of place of business from one place to another place, there is no need to cancel the existing number and
apply for new number. The existing TIN will continue. However, the event of shifting should be intimated to the registration authority of
the old place.
• 3. Fees and Deposit:
A dealer applying voluntarily for registration has to pay fees of Rs
• 5,000 in addition to a deposit Rs 25,000.
• Other dealers have to pay a fee of Rs 500 and are not liable to make any deposit.
• The fees are to be electronically paid in Challan no. 210, appended to the MVAT Rules. Deposit amount can be paid by a demand draft.
• 4. Submission of PAN: No application is accepted without PAN. If PAN is
not there, proof of filing Income Tax Return is also accepted
• 5. Business name: The business name on the application should be the
same as on the PAN, except in case of a proprietary concern. In case of
other constitutions, the business name on the application should match
with the constitution related document such as the partnership deed,
Certificate by the Registrar of Companies etc.
Verification Name & Status of the Signatory
 Documents Required for the
purposes of Registration:

PROOF OF CONSTITUTION OF
BUSINESS & PLACE OF BUSINESS.
PROOF OF PERMANENT RESIDENTIAL
ADDRESS
BANK ACCOUNT DETAILS
PAN CARD
Photo
 CANCELLATION OF REGISTRATION

• The Registered Dealer shall apply for cancellation of registration in form 103,

within prescribed time where the Business is transferred/discontinued/disposed off.
• The Registered Dealer may apply for cancellation of registration if during any year
his turnover has not exceeded the relevant limit as specified in section 3(4).