sales tax registration
This query is : Resolved
26 June 2016
why transporter are required to get sales tax registration?
They dont purchase and sale goods,
they are only providing service.
26 June 2016
In which Vat Act this has been said, plz clarify.
23 July 2025
Great question! Here’s why transporters may be required to get **sales tax registration**:
---
### Why Transporters Need Sales Tax Registration:
1. **Service vs. Goods Movement**:
Transporters provide a **service** (transportation), but in many states, **tax laws cover services related to goods movement under VAT or sales tax rules**.
2. **VAT on Goods Transported**:
Some states levy VAT on the **value of goods transported**, or require transporters to collect **tax on waybills, consignment notes, or freight charges**. Hence, transporters may fall under the VAT/sales tax net.
3. **Tax Collection on Behalf**:
Transporters might be **required to collect and remit tax** (like Entry Tax, Octroi, or VAT on goods in transit) on behalf of state governments. Registration helps track and regulate this.
4. **Interstate Movement**:
For interstate transport, **commercial tax rules** may require transporters to register for compliance with CST (Central Sales Tax) or GST regimes.
5. **Legal Compliance**:
Even if they don’t buy or sell goods, transporters may still be liable under **state VAT or sales tax rules related to transportation services**, so registration is mandatory for lawful operation.
---
### Summary:
* Transporters may not **sell goods**, but their services are **taxable or regulated under sales tax laws**.
* Registration ensures proper tax collection and compliance.
* It’s state-specific — some states mandate registration of transporters for VAT or sales tax.
---
If you want, I can check the specific rules for your state or under GST, just let me know!
---
### Why Transporters Need Sales Tax Registration:
1. **Service vs. Goods Movement**:
Transporters provide a **service** (transportation), but in many states, **tax laws cover services related to goods movement under VAT or sales tax rules**.
2. **VAT on Goods Transported**:
Some states levy VAT on the **value of goods transported**, or require transporters to collect **tax on waybills, consignment notes, or freight charges**. Hence, transporters may fall under the VAT/sales tax net.
3. **Tax Collection on Behalf**:
Transporters might be **required to collect and remit tax** (like Entry Tax, Octroi, or VAT on goods in transit) on behalf of state governments. Registration helps track and regulate this.
4. **Interstate Movement**:
For interstate transport, **commercial tax rules** may require transporters to register for compliance with CST (Central Sales Tax) or GST regimes.
5. **Legal Compliance**:
Even if they don’t buy or sell goods, transporters may still be liable under **state VAT or sales tax rules related to transportation services**, so registration is mandatory for lawful operation.
---
### Summary:
* Transporters may not **sell goods**, but their services are **taxable or regulated under sales tax laws**.
* Registration ensures proper tax collection and compliance.
* It’s state-specific — some states mandate registration of transporters for VAT or sales tax.
---
If you want, I can check the specific rules for your state or under GST, just let me know!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Money lost in stock market related scam
- Error whilst validation
- Required to submit form 10IEA_fy 24-25
- Reminder of Dues under the WBGST Act 17
- ERRROR IN ITR2 FILING
- ITR2 Not Validating Short Term Capital Loss as value less than zero
- Rebate u/sec. 87A manually
- ITR3
- GSTR ITC relationship
- Hash value error indicated whilst validating itr 2 online
- FNO loss set off with STCG
- ITRU invalid and political donation
- Regarding Hackathon Prize W-8BEN Form Tax Treaty Benefit & 115BB/115BBJ
- Excess Interest paid on TDS challan- Can it adjusted against tax payable
- Exemption of gratuity in case of govt employees
- RECEIPT NUMBER OF EARLIER STATEMENT FILED FOR FORM 26Q- PREVIOUS TDS RETURN FILED FOR F.Y.2017-18_Q4
- Leave Encashment after resignation
- Regarding ITC show in Electronic Credit Reversal and Re-claimed Statement.
- TDS on disallowance and reporting
- Requirement of MGT-14 for resolution passed at EGM for appointment of auditor
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
