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Profession tax regn reqd for vat regn?

yashsr (CA) (2285 Points)

14 May 2012

Hello,

A dealer dealing in immitation jewellery started his business on 10th May 2012. He now wants to obtain voluntary VAT Regn and CST Regn. Is Registration/Enrollment in Profession Tax required? If yes, is it a pre-condition for VAT/CST Regn or can it be obtained before R/E in Profession Tax?

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Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 14 May 2012

Enrolment of Profession Tax is mandatory for anyone who carries on business. There is no such requirement that PTEC is prerequisite for VAT / CST. However, to increase the tax base in PT, the department has issued internal circulars for the same. Wheress PTEC should be taken immediately, there is no need to take PTRC unless you are eligible for that. If you have employees whose salary exceeds the limites as given under PT Act, then you should take PTRC.

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yashsr (CA) (2285 Points)
Replied 14 May 2012

Originally posted by : Amol Gopal Kabra (CA,CS,DISA)
	Wheress PTEC should be taken immediately, there is no need to take PTRC unless you are eligible for that. If you have employees whose salary exceeds the limites as given under PT Act, then you should take PTRC.