LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

About vat registration for startups

GOWTHAM S B (student) (25 Points)

28 October 2015

hi sir, we a team of five students are willing to start a ''small" business by selling pendrives and sd cards on e commerce platforms...Is it necessary to register for VAT as we are new to this please help us..

Reply
Follow
Share

5 Replies

AMBUJ SHARMA (CHARTERED ACCOUNTANT) (243 Points)
Replied 04 November 2015

you need to register under mvat only when your turnover exceeds rs.10 lac in financial year. otherwise you need not register.

Best wishes for your business.

GOWTHAM S B (student) (25 Points)
Replied 04 November 2015

Thank you sir... but most of the e-commerce websites exept ebay ask for VAT ID to sell...:(.what can we do to sell on all platforms without VAT ID..

AMBUJ SHARMA (CHARTERED ACCOUNTANT) (243 Points)
Replied 05 November 2015

In that case, you can opt for voluntary registration under MVAT. i dont think there is any other option left.

Akhil Nair (1 Points)
Replied 05 November 2015

Sir,

I have another Query.

My friends are starting a business of selling grocery items online. They are planning to purchase the goods from local retailers and sell the same in the begining. Please advice
1) if turnover doesn't exceeds the specified limit, but opted for voluntry registration, whether taxes are attracted on such purchases?

2) if the turnover goes beyond specified limit, can they claim ITC on such purchases?

AMBUJ SHARMA (CHARTERED ACCOUNTANT) (243 Points)
Replied 06 November 2015

1. If You get voluntary registration under mvat, then you are required to pay tax as normal procedure.

2. If you have taken voluntary registration, you can claim input tax credit from the initial purchase also but make sure you buy goods from registered dealers only raising tax invoices.