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sales tax return filing and its assessment procedure

 Sales tax return filing and its assessment procedure

Sales tax return filing and its assessment procedure

1.Total 5 types of taxes have to paid in Madhya Pradesh (commercial tax department):
VAT
CST
Entry Tax
Professional Tax (persons) (Separate registration)
Professional Tax (employer) (Separate registration)

Sales tax return filing and its assessment procedure

Sales tax return filing and its assessment procedure

sales tax return filing and its assessment procedure

2.Due Date of Payment- VAT, CST and Entry tax have to be deposited monthly on or before 10th of next month. For last month of each quarter, due date shall be 30th of next month instead of 10th. For month of March, for transactions upto 25th March, due date is 31st March and for remaining period due date is 30th April.
However, where quarterly tax liability does not exceed Rs.15,000/-, dealer can pay taxes on quarterly basis. Due date in such case shall be 30 days after expiry of each quarter.

sales tax return filing and its assessment procedure

Interest on delayed payments is payable @ 18% p.a.
Professional Tax (Person) is to be deposited annually. (maximum liability Rs.2,500 per year)
Professional Tax (Employer) is to be deposited monthly for each employee whose salary exceeds Rs.1,80,000/- per year. (Rs.208 per month)

3.Interest on delayed payments is payable @ 18% p.a.
Professional Tax (Person) is to be deposited annually. (maximum liability Rs.2,500 per year)
Professional Tax (Employer) is to be deposited monthly for each employee whose salary exceeds Rs.1,80,000/- per year. (Rs.208 per month)

sales tax return filing and its assessment procedure

4. Due date for filing returns is as follows:
Q1 – 30th July (above 2 crore)/ 19th Aug
Q2 – 30th Oct (above 2 crore)/ 19th Nov
Q3 – 30th Jan (above 2 crore)/ 19th Feb
Q4 – 30th Apr (above 2 crore)/ 19th May
Penalty for delayed returns shall be Rs.50/- per return per day (i.e. Rs.150/- for delay of VAT, CST and ET returns) for delay of 30 days. Beyond 30 days, penalty shall be Rs.1,000/- per return per day (i.e. Rs.3000 per day for all returns) subject to maximum of Rs.50,000/- per return (i.e. Rs.1.50 lac for all returns).
General rate of VAT and CST is 5% and 13%. However, in case of interstate sale against “Form-C” CST is chargeable @ 2%. In case of stock transfer to other state against “Form F”, no tax is leviable, however, input tax rebate on goods transferred or raw material consumed on such transfer shall be liable for reversal @ 4%.
Input tax rebate of VAT paid on all goods purchased from registered dealers in Madhya Pradesh is available subject to following conditions:
Full payment is to be made through banking channel for bills above Rs.40,000/-
Complete party-wise list of all purchase and sales is submitted in quarterly e-returns.
Seller is not a composition dealer.

sales tax return filing and its assessment procedure

5.Entry tax is payable on:
All purchases from outside Madhya Pradesh
Purchase of “ET not paid” goods from other local (municipal) area within Madhya Pradesh (eg- Entry tax shall be payable on goods purchased in Indore from a manufacturer in Bhopal. However, no ET shall be payable on goods purchased in Indore from a manufacturer in Indore. Please note- Goods purchased directly from “manufacturers” are always “ET not paid goods” and goods purchased from traders are generally “ET paid goods”)
All purchases from unregistered dealers.
General rate of entry tax is 1% (for goods covered under 5% VAT category) and 2% (for goods covered under 13% VAT category).
Form 49 is to be issued for bringing prescribed goods into Madhya Pradesh. For list of prescribed goods, visit http://dineshgoyal.com/vat/list-of-goods-for-form-49/
Form C/Form F can only be issued if CST registration is obtained.
First interstate sale- Intimation is to given to department within 30 days of first interstate sale transaction.
Submission of Audit Report- Audit report along with financial statements is to be submitted each year on or before 15th November.
Composition Scheme-

sales tax return filing and its assessment procedure

6. In case of Works Contractor- Dealer has option to apply for Composition for each works contract within 60 days. Brief details are as follows:
Flat rate of 1% VAT on total value of works contract [Condition- all purchases should be made from registered dealer in MP. Purchases upto Rs.1 lac can be done from unregistered dealer in MP]
Flat rate of 5% VAT on total value of works contract [No conditions]
Entry tax not payable [Noti. no. 16 dt. 11/04/07]
No Input tax rebate on purchased goods shall be available.
Application has to be made within 30 days.
Each application is subject to approval from CTO.

sales tax return filing and its assessment procedure

7.In case of Traders- Dealer has to apply for composition each year before 30th April. Details are as under:
Flat rate of tax @ 0.5%
Condition- All purchase must be made from registered dealer within Madhya Pradesh.
Turnover should not ordinarily exceed Rs.1 crore.
No input tax rebate on purchased goods shall be available
Customers shall not be eligible for input tax rebate.

sales tax return filing and its assessment procedure

8.In case of manufacture of Cooked Food- Dealer has to apply for composition each year before 30th April. Details are as under:
Flat rate of tax @ 3%
Turnover should not ordinarily exceed Rs.1 crore.
No input tax rebate on purchased goods shall be available
Customers shall not be eligible for input tax rebate.

sales tax return filing and its assessment procedure

9.In case of manufacture of Goods other than cooked food-
Flat rate of tax @ 4%
Turnover should not ordinarily exceed Rs.1 crore.
No input tax rebate on purchased goods shall be available
Customers shall not be eligible for input tax rebate.

sales tax return filing and its assessment procedure

10.Annual Assessment- Assessment is annually done by the department. [Last date: 31st Dec. of subsequent year after end of financial year.] However, where all the taxes are paid on time and returns are filed on time, case may not be selected for assessment. Also, generally govt. notifies self assessment schemes each year during Oct-Nov period for small dealers.

sales tax return filing and its assessment procedure

We have tried to provide basic but necessary details in brief. However, there may be special cases where above provisions do not apply.

this was complete information about sales tax return filing and its assessment procedure
Hope my above article will help you understand MP-VAT.

Sales tax return filing and its assessment procedure

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1 comments
  1. GUNJAN SANGHI says:

    WHEN ASSESSMENT CASE STARTS FOR ANY PREVIOUS YEAR FOR EXAMPLE PY 2015-16 ANNUAL RETURN FILED ASON 31.01.2017 SO IN WHICH YEAR ASSESSMENT WOULD BE START. PLS REPLY ME.

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