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.
---
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