Can anyone tell me when is an assessee applicable to get registered for VAT?
Sonu Kumar
(Account Manager)
(665 Points)
Replied 10 March 2013
Registration under State Value Added Tax Act
Compulsory Registration
A dealer must apply for registration in the following cases:
(i) If the turnover has exceeded `10 lakhs at any time during the year.
(ii) He is registered under Central Sales Tax Act, 1956.
(iii) He is purchasing goods from outside the state for sale within the state.
Example
Mr. X is an unregistered dealer in Delhi,. His sales turnover is `5,00,000 but he is purchasing some of the goods from outside Delhi, in this case, he should apply for compulsory registration.
If in the above case, he is not purchasing goods from other States but he is selling some of the goods to other States, in that case also registration is required. If he is not purchasing goods from other States and also not selling goods to other states, registration is not required but if turnover is exceeding `10,00,000, registration is required.
Voluntary Registration
Any dealer may apply for voluntary registration under State Value Added Tax Act at any time.
Only dealer registered under State Value Added Tax Act can charge VAT and can issue tax invoice and VAT Credit is only allowed on the basis of tax invoice.
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