Online grant of Registration under MVAT, CST and PT Act with Scanned Document

CA Falguni Padiya

The new system of Registration envisages grant of registration based upon online verification of application and documents uploaded by the applicant. This exercise is aimed at reducing the hardship of the applicants in visiting the Sales Tax Office for registration and make the process simpler and transparent. In order to achieve this objective, the applicant is needed to upload the legible and proper documents along with the application for registration. Where ever, this requirement is not followed, the Registration officer shall reject the application. Therefore, it is necessary for the applicants to ensure that they upload the Registration application with legible and proper documents and obtain registration in hassle – free manner. The new system is effective from 07/05/2015.

The applicant may check the status of his application, whether it is created/ submitted or not by selecting the options for e-registration on Home Page of the Department Website   www. mahavat.gov.in. Applicant has to enter his PAN to view his application in “existing dealer” option.

Reference: Trade Circular under The Maharashtra Value Added Tax Act, 2002

1. Trade Circular No. 4T of 2015 Mumbai dated 09/03/2015
2. Trade Circular No. 5T of 2015 Mumbai dated 06/05/2015
3. Trade Circular No. 7T of 2015 Mumbai dated 19/05/2015
4. Trade Circular No. 13T of 2015 Mumbai dated 14/08/2015

The simplified procedure is as under:

i. The applicant shall fill in the application for Registration as per the procedure laid down in the Trade Circular No. 4T of 2015 dated 09/03/2015. It may be noted that the applicant should not select the Act under which he is already holding the TIN.

ii. In Trade Circular 5T of 2015, it was mentioned to pay registration fees and security deposit by way of demand draft. However, a facility has now been made available by which the fees and security deposit will be accepted by way of e-payment. The procedure for e-payment is explained in Annexure “D” of   Trade Circular No. 7T of 2015 Mumbai dated 19/05/2015

iii. After  filling  the  application  for  new  registration, and making e – payment of fees and / or deposit,  applicant  shall upload scanned documents such as PAN CARD, proof of constitution,  Bank  details, Address proof, Photo of  applicant, Photo ID, Challan etc, which are explained in Annexure “A” of Trade circular No. 7T of 2015 dated 19/05/2015. The applicant needs to reduce the size of page (up to 100 kb per page) by reducing “dpi” while scanning the documents so that, it gets uploaded.

iv. Applicant shall upload the scanned copy of Declaration-cum­ Indemnity Form mentioned in Annexure “B” of Trade circular No. 7T of 2015 dated 19/05/2015. bearing signature and photograph of applicant (signatures of all partners in case of partnership and Limited Liability Firm).

v. Applicant shall upload the details of the Introducer as per following Annexure “C” (in case of voluntary Registration Scheme) with TIN number, signature and Rubber stamp of introducer.)

vi Applicant shall submit the correct and complete application form along  with  required  scanned  documents,  Declaration  Form  and Annexure “C” of Trade circular No. 7T of 2015 dated 19/05/2015.

vii After submitting the application and scanned documents an acknowledgement will be generated containing the details of the registration  authority.

viii The Registration Authority shall call the following class of applicants before him or verification of documents before granting the Registration  certificate:-

a) The applicant or the person interested in the business is found to have been involved in non-genuine business activities previously.

b)  The applicant dealing in commodities which are declared as risky by the Sales Tax Department from time to time.

(ix)  Process of TIN generation:

a) After examining the uploaded application, scanned documents and photo of applicant with photo ID as mentioned in “Annexure ‘A’ ‘B’ and ‘C’ if Registration Authority finds that, application is correct and complete, scanned  documents are uploaded properly and payment of Deposit and Fees is received ,will approve the application and TIN will be generated.

b) TIN will be communicated to the applicant on his email provided in the application form. c) Certificate of Registration will be sent by post/courier on the address mentioned in the application form for registration.

(x) If the application and documents uploaded are not found in order and proper, the application shall be rejected and rejection order will be communicated on the email address provided in the application form. Further the copy of rejection order will be sent by Registered post/Courier to applicant on the address mentioned in the application form for registration

Link for Trade Circular:

http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/TRADE%20CIRCULARS/DateWise/KNOW_TRADEC_DW_MVAT/KNOW_TRADEC_DW_MVAT_05_19_15_4_38_53PM.pdf

MVAT Registration Turnover Limit:

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:

Here importer means the dealer who purchases the good outside the state of Maharashtra. The turnover limit of Rs. 1 lack or Rs. 10* lacks is including turnover of all sales whether taxable or tax free.  However turnover limit of Rs. 10,000 is in respect of taxable goods whether purchase or sold.

The dealer can also get registered under MVAT voluntarily if he does not cross the turnover limit under section 3 (4). But for voluntary registration dealer is require to pay Rs. 25,000 as a deposit and Rs. 5,000 as a fee.

Under which circumstances voluntary registration is beneficial:-

1)      When dealer is doing manufacturing activity and require 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.

2)      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 the goods purchase.

Under which circumstances compulsory registration is beneficial:-

When dealer is the small trader and he is not going to purchase the bulk material      (say less than Rs. 10,00,000), then there is no need for voluntary registration. The benefits of compulsory registration are as below:-

1)      Dealer is not required to pay the deposit of Rs. 25,000 and registration fees require to pay is    Rs. 500 only.

2)      Dealer can claim initial exemption of tax liability on sales up to Rs. 10,00,000* under section            3 (2) of MVAT Act.

 MVAT Registration is compulsory if turnover exceeds prescribe limit as mention above. In default of non-registration penal provisions of MVAT act are applicable.

*This figure is substituted for the figure “5,00,000” by Mah. Act No.XXVII of 2014 dt.26.6.2014.

Time Limit to apply for Registration

 In case the application is in time, the Registration Certificate shall be granted from the date of the said event. If the application is electronically uploaded late, then Registration Certificate shall be granted from the date of application if the application is complete, valid and supported by all relevant documents.

(Author may be reached at cafalgunipadiya@gmail.com)