QUIZ - MVAT

- Ms. Dhwani Mainkar

• State whether the following transactions can be considered as “Sale” under the MVAT Act,
2002. (5)
• i)  Transfer of goods from head office to branch
• ii)  Pledge of goods
• iii)  Sale of goods under Hire Purchase
• iv)  Sale of scrap
• V) Free Sample
• Vi) Works Contract by a works Contractor
• Vii) Legal service rendered by a lawyer
• viii) Sale of Papdi Chat in Aditi Canteen
• IX) Lease of Goods
• X) Branch Transfer
• Xi) Drawings of Proprietor in Kind
• Xii) sale of finished goods through merchantile agents
STATE TRUE OR FALSE
1. Following Class of goods excluded from the scheme and Turnover of sales / purchases is
not to be considered for calculation of composition
• a)  Foreign liquor, Country liquor and liquor imported in India
• b)  Drugs covered by Entry C 29
• c)  Notified motor spirits viz. High Speed Diesel, Petrol, Aviation Turbine Fuel and Aviation Gasoline
• 2. The Composition scheme is not available to a retailer.
3. A works contractor registered under the Composition Scheme can avail SET OFF CREDIT.
4. A Restaurateur registered under the Composition scheme can charge VAT on his bill and
issue a tax invoice.
5. For an importer the total turnover of sales for the purposes of registration must exceed
10L.
6. Dealers are not allowed to opt in for a voluntary registration if their turnover of sales is
below the requisite monetary threshold.
2 Markers
• A is an agent for B whose turnover is Rs. 40,000. He is also an auctioneer and he sells
on behalf of the actual sellers of Rs. 1,00,000. Besides, A’s own taxable turnover is
Rs. 3,80,000. Please find out whether he is liable to registration under MVAT?
• What is the rate of tax attracted on packing material?
• EXPLAIN THE SALES NOT LIABLE TO TAX UNDER MVAT
• Whether the following purchases are eligible for Set-OFF under MVAT
• Interstate purchases of taxable goods for resale
• Intrastate purchases of taxable goods for resale
• Intrastate purchases of taxable goods for manufacture of taxfree goods
• Purchase of inputs for manufacture of taxable goods within the State.
• Purchases of taxable goods being motor car as capital asset for business.
• Taxable goods purchased as packing material
• Taxable goods purchased as ‘fuel’