The Madhya Pradesh Government has enacted the Madhya Pradesh Value Added Tax (Amendment) Act, 2010. Some of the significant changes under the said Act are as follows:

  • Effective from 1 April, 2010, the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%.
  • Effective retrospectively from 1 August, 2009, if a dealer holds separate registrations for more than one unit owned by it in Madhya Pradesh, inter-unit transfer of goods specified in Schedule II to the Madhya Pradesh Value Added Tax Act for the purpose of sale, consumption or use in/for manufacture of goods specified in the Schedule II shall be construed as independent transactions of sale or purchase.

Source:- The Madhya Pradesh Value Added Tax (Amendment) Act, 2010 published in Official Gazette on 1 April,2010.

Madhya Pradesh Central Sales Tax amendments :-Goods specified under Part III of Schedule II to the Madhya Pradesh Value Added Tax Act enjoyed exemption from Central Sales Tax till 31 March, 2010 subject to the condition that the goods have already been subjected to tax under the Madhya Pradesh Value Added Tax Act. The exemption has now been extended till 31 March, 2011.

Source:- Notification No.F-A3-60/2005/1/V(49) dated 1 April, 2010

Madhya Pradesh Entry Tax amendments

Levy of entry tax on goods brought for construction purpose

Effective from 1 April, 2010, persons bringing goods specified in Schedule II of the Madhya Pradesh VAT Act into any local area within Madhya Pradesh are liable to entry tax if the said goods are brought for the purpose of construction and a subsequent sale or letting out of:

  • five or more residential houses/flats or
  • a commercial building of more than 5,000 square feet

The applicable rate of entry tax in respect of the subject goods will be the rate at which these goods are liable to VAT under the Madhya Pradesh VAT Act.

Further, entry tax liability will be only on those persons in whose hands the subject goods have not suffered tax under the Madhya Pradesh VAT Act.

Source:- Notification No.F-A3-2/2010/1/V(40) dated 31 March, 2010 read with Notification No.F-A3-2/2010/1/V(41) dated 31 March, 2010

Entry tax rate change :- Effective from April 1, 2010, the Government of Madhya Pradesh has revised the rate of entry tax on specified goods.

Source:- Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar (Sanshodhan) Adhiniyam, 2010 read with Notification No.F-A3-2/2010/1/V(46) dated 1 April, 2010

More Under Goods and Services Tax

45 Comments

  1. Nitin Mahajan says:

    please tell me about applicable VAT for electrical goods in Madhya Pradesh. please send me amendment copy of rules wide effected from.

    thanks

  2. ravi kumar says:

    My Builder is asking both Sevice Tax and VAT. Sevice Tax @4.5% while VAT @ 5% on the amount after deducting registry prices. Can any one explain the exact percentage on flat purchase less than 480Sqft & ghar is still construction

  3. G S JUNEJA says:

    we are manufacturer of pre fabricated portable and modular toilet ,guard cabins ,frisking room etc in M P.
    As these items are not available in MP vat tax list, We are paying full rate of tax. while on pre fabricated building structure it is 5%. what is the right tax applicable.

  4. Mayur shah says:

    hi
    i want to know that where state govt (madhya pradesh) purchses goods from regd dealer from same state @ VAT 5% and paid VAT tax by challan in bank and such govt department niether has PAN nor TIN no. so how can it issue form 31 to seller of goods?

  5. Sandeep Sharma says:

    Hi,
    I purchased a duplex near by at Bhopal in amt 2360000 in Aug 2013.
    I may get possession by Oct 2015.

    1. Builder is asking 3.09% Service tax on the mentioned amount which is 72900 approx.
    2. He is also asking for 5% on the above mentioned amount which may approx 1,18000 While the plot cost is 10,80000 mentioned in registry.

    Please suggest for the proper TX amount..

    Thanks
    Sandeep

  6. suhit jain says:

    hi sir,
    my question is applicable vat and service tax apply in m.p please tail me my ans and vat and service tax list applicable for building with material work rate.

    thanks sir

  7. Rajpal Singh says:

    My Builder is asking both Sevice Tax and VAT. Sevice Tax @3.09% while VAT @ 3.71 on the amount after deducting registry prices. Can any one explain the exact percentage on flat purchase less than 2000 Sqft & flat is still construction.

  8. pradeep says:

    Hi,

    I have purchased duplex in Bhopal, done registration in 2012, EMI is running. Possession wil lbe given in this Diwali. Can someone tell whether i have to pay service tax & VAT. What is % of these tax? Builder is telling VAT is 5% on construction cost that will be around 1.5 lacs other way to calculate it 3% of total cost. Now come to service tax part, service tax builder is telling is flat 3.09% of total cost of the property(land+construction). Please advise what really i have to pay?

    Thanks in advance,

    Regards,
    Pradeep

  9. sanjay sohani says:

    Regarding VAT Tex and Service Tex on new flats in state of MP.

    I want be to know that what is true guide line for VAT and Service Tex on buying of newly constructed flats in the state of MP.

  10. Devendra says:

    Dear Sir,

    I would like to know, Entry Tax Notification on Motor Vehicle (Chassis) which shows the change of Tax from 10% to 1%. Please suggest.

  11. MVC RAO says:

    I am Contractor and I want to give sub-contract with materials in MP State. In that case how much I have to pay VAT and Service Tax to my Contractor

  12. Shyam says:

    Dear Sirs,

    We have road project near Singrauli in Madhya Pradesh. When we want to purchase tyres from branded tyre manufacturers (CEAT / JK etc.) local outlets against local MP VAT, they are charging ENTRY TAX @ 2% on the basic value of tyres and then they are charging MP VAT. Our accounts dept. is refusing to pay as there is no inter state transaction involved.

    Please suggest with your valuable comments on above.

  13. spkar says:

    what is the effective date of MP VAT on flats etc. being sold by builders? And what if 70% of the flat booked in 2007 to be handed over by 4/11 is not yet constructed and possession not handed over? Whether VAT is applicable on remaining amount to be paid or on the entire flat cost at the time of registry and giving possession in 2014 or so? What about the liablity of Service tax? On the remaining amount to be paid only or on the entire amount when registry takes place and possession/completion letter is given. Please infm urgently pl.

  14. Dhirendra Saxena says:

    I want to pur house in omaxe city 1 Indore all the payment has been clear in 2008 by 2nd owner now I am purchasing and omaxe charge me .5% of basic value e.i Rs 90150/- of VAT U/S 9-B,pls adv.

  15. Parimal says:

    Sir, 
    i am running an advertising agency where we provide all printing solution to our client , we dont have any manufacturing unit, we outsource all goods, and our turnover is below 7 lacks and dont charge any tax from our clients,  pls let us know that the limit of exemption in vat/ service tax liabilty. does we come in any liabulity.

    thanks and regards 

  16. Rajneesh Sengar says:

    R/sir,
    1) I have booked the new house on 26 june 2010
    2) Register of the same is on 12 aug 2010
    3)Possession dt on 28 feb 2011, but the possession of house is still waited (up to 09 jan 2012)
    for this the builder is force to pay the Vat @ 5 % on total cost of house plz guide me.

    Regards…
    Rajneesh Sengar

  17. p.sudhir says:

    Respected Sir,
    detail’s of Tin No registration process in MP.
    Detail’s of tax imposed on Raw Cloth material Readymade cloth Raw Fabric of (matty,Canvass,Paratchute)Bags & readymade bags in states & union teritories.It’s plz reply

  18. SUNIL JAIN says:

    Dear sir
    we are work in social sector and registered a producer company for provide cottopurchase better prize of cotton for small and marginal farmers. so plz provide tax liabilities on cotton purchase by producers company and sail to ginners. plz provide all details of taxes like Mandi tax, VAT tax and entry tax applicable in Nimar region of Madhya Pradesh .
    thanks & Regards
    SUNIL KUMAR JAIN
    Action For Social advancement ( ASA)
    E5/a arera colony Bhopal ( MP)

  19. ashok badge says:

    r/sir,

    1) I have booked the new house on 13 aug. 2010.
    2) and the register of the same is 12 to 14 Nov. 2010
    3) but the possession of house is still waited (up to 31 Oct. 2011)
    for this the builder is force to pay the Vat @ 5 % on total cost of house plz guide me.

    Regards…
    ashok badge

  20. ashok badge says:

    r/sir,

    1) I have booked the new house on 13 aug. 2010.
    2) and the register of the same is 12 to 14 Nov. 2010
    3) but the possition of house is still waited (up to 31 Oct. 2011)
    for this the builder is force to pay the Vat @ 5 % on total cost of house plz guide me.

    Regards…
    ashok badge

  21. AK Bhargava says:

    Dear Sir,

    In common interest-Please respond to following:

    1. Is there any liability of Entry tax on TRADING business (Purchase of goods and its resell) within state on trading dealer who purchases the goods from manufacturers and resale it w.e.f. 01.04.2010 ? It was OK in respect of consumption of goods in mfg. or mining or processing of goods but not perfect in case of trading wherein mostly traders forward the goods from mfgrs point to selling point.therefore no question arises of entry of goods consequently attracting entry tax.

    2. It appears ex facio unconstitutional stealing or taking away the meager margin of profit of traders. Has any petition been filed in high court/ supreme court challenging validity of the imposition of entry tax on such transaction ?

    3. Plz provide relevant notification and other material elaborately describing the issue of Entry tax in Madhya pradesh on different class/category of dealers/transactions.

    Regards…

    AK Bhargava
    Bhargava Lane, Nai Basti, KATNI (MP)
    [email protected]
    9425157452

  22. sunil gadgil says:

    Dear Sir,

    Kindly give me note on “ENTRY TAX & VAT” FOR MADHYA PRADESH including list of goods where entry tax & vat are eligible in Madhya Pradesh.(with rates)

  23. Mustafa ALi says:

    If we bring goods manufactured in a municipal authority into gram panchayat area then, is there any liability for entry tax on goods ?

    What if the invoice is VAT paid and there is no mention of entry tax in the invoice, will there be any liability on purchaser?

  24. SANDEEP says:

    the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%. Please write the Notification No. and send a copy of it.

  25. Manoj says:

    the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%. Please write the Notification No. and send a copy of it.

  26. Adv. Israr Ahmed says:

    Regarding change in Entry Tax Rate,
    y r only mentioned that the M.P. Govt. has revised the rate of entry tax on specified goods, but y have not mentioned the name of goods & rate of tax on it.

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