VAT in Madhya Pradesh

The Madhya Pradesh Value Added Tax Act of 2002 lays down the rules and regulations regarding VAT in Madhya Pradesh. While there have been several amendments, its idea remains the same. It is a tax under the Central Government of India levied on producers of goods, products, and materials.

Are you still confused about this concept? Keep reading this article to find out all about it.

Values Added Tax (VAT) is a popular tax levied on goods and services across countries. In simple terms, a consumption tax levied on each step of the supply chain adds value to goods production. Calculating VAT payable depends on the difference between the product prices from the price of materials already taxed.

According to the Madhya Pradesh VAT Act, VAT rates are different for various products. In this regard, the state government has divided the products into four schedules. These are listed below.

If a business has an annual turnover that exceeds ₹5 lakh, it is liable to pay the VAT to the government. They must register for VAT and include tax rates on the market price range of their products and services. According to the law, the following dealers shall have to pay this tax.

• Every dealer whose annual turnover exceeds ₹5 lakh will be liable to pay VAT.
• If dealers sell the mentioned products, they will be liable to pay VAT once their turnover exceeds the prescribed limit.

Now that you know the Madhya Pradesh VAT rules, you must be curious to know the right steps to apply for it. The following steps can be beneficial if you are planning to apply online.

Step 1: Visit the official website of MP Tax. Click on the “PT Registration” link.

Step 2: Complete this registration form with all your details. Upload all the required documents.

Step 3: Pay the registration fees. You will receive a temporary VAT registration number after completing this procedure.

Step 4: Keep checking the status of your registration on this website. After this verification, you will receive a Permanent VAT registration number.

If you are more comfortable with the offline procedure, here are some steps to complete the VAT registration.

Step 1: Download Form VAT 100 from the official website. Fill it with all the required details. 

Step 2: Bring this form and other documents and submit them to the functional local VAT office. Wait for the authorities to complete their inspection.

Step 3: Pay a professional fee deposit once their inspection is over. You will then receive your unique TIN and your certificate within a day.

A dealer must submit VAT registration fees and the Professional Tax fees to complete a VAT registration process. The following table discusses the fees for different levels of business.

You can file for a VAT return after getting a permanent Tax Identification Number (TIN). The following steps can be beneficial in this context.

Step 1: Visit the official website of MP Tax and log in to your account. Download Form 10 and extract these files on your device.

Step 2: Start filling out this form and importing data in the annexures. Click on “Download Dealer Utility Tool – Returns”.

Step 3: Use this tool to create an XML file with all the imported VAT receipts in the Excel template. Upload the form with all the other documents.

Step 4: Download and print its receipt for future references.