Tin registration
This query is : Resolved
CA KRITIKA AGARWAL
(Querist)
28 June 2013
MY CLIENTS BUSINESS IS CEMENT BUSINESS.
HIS TURNOVER IS ABOUT 25 LAKH
HE IS NOT REGISTERD IN TIN.WHAT TYPE OF PENALTY CAN BE IMPOSED ON HIM
HIS TURNOVER IS ABOUT 25 LAKH
HE IS NOT REGISTERD IN TIN.WHAT TYPE OF PENALTY CAN BE IMPOSED ON HIM
CMA Ramesh Krishnan
(Expert)
28 June 2013
It depends upon your state VAT act
02 August 2025
If your client's turnover in the cement business is about ₹25 lakh and they are not registered under TIN (VAT), here’s what you should know about penalties and compliance:
### 1. **Mandatory VAT/TIN Registration Threshold**
* Most states mandate VAT registration if turnover exceeds a certain limit—usually ₹10 lakh or ₹20 lakh, but this varies by state.
* Since your client’s turnover is ₹25 lakh, they are **required** to register under VAT and obtain a TIN.
### 2. **Penalty for Non-Registration**
* Operating without VAT registration when mandatory can attract **penalties** under the respective State VAT Act.
* Penalties typically include:
* A **fixed penalty** (e.g., ₹10,000 or more) for non-registration.
* **Penalty equal to the amount of tax evaded** or **tax not paid**, which can be heavy.
* Interest on the delayed payment of tax.
* In some states, prosecution proceedings may also be initiated.
### 3. **Other Consequences**
* No input VAT credit can be claimed without registration.
* Business transactions with registered dealers can be difficult as they will insist on valid TIN for their compliance.
* Assessment and scrutiny by VAT authorities may be triggered, with retrospective tax demand and penalty.
### 4. **Recommended Action**
* Get registered **immediately** under the State VAT Act and obtain TIN.
* File **voluntary disclosure** or approach VAT authorities with the registration and offer to pay tax along with penalty and interest to reduce liability.
* Maintain proper VAT records and file returns timely to avoid further penalties.
---
### 1. **Mandatory VAT/TIN Registration Threshold**
* Most states mandate VAT registration if turnover exceeds a certain limit—usually ₹10 lakh or ₹20 lakh, but this varies by state.
* Since your client’s turnover is ₹25 lakh, they are **required** to register under VAT and obtain a TIN.
### 2. **Penalty for Non-Registration**
* Operating without VAT registration when mandatory can attract **penalties** under the respective State VAT Act.
* Penalties typically include:
* A **fixed penalty** (e.g., ₹10,000 or more) for non-registration.
* **Penalty equal to the amount of tax evaded** or **tax not paid**, which can be heavy.
* Interest on the delayed payment of tax.
* In some states, prosecution proceedings may also be initiated.
### 3. **Other Consequences**
* No input VAT credit can be claimed without registration.
* Business transactions with registered dealers can be difficult as they will insist on valid TIN for their compliance.
* Assessment and scrutiny by VAT authorities may be triggered, with retrospective tax demand and penalty.
### 4. **Recommended Action**
* Get registered **immediately** under the State VAT Act and obtain TIN.
* File **voluntary disclosure** or approach VAT authorities with the registration and offer to pay tax along with penalty and interest to reduce liability.
* Maintain proper VAT records and file returns timely to avoid further penalties.
---
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
- Query on effect of registration of property
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Number of years as per AS amortisation of Goodwill
- Equity Share Sale and Purchase
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
