Vat registration

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This query is : Resolved

CA ASPIRANTS (Querist)

13 February 2013 Hello,
I am from Mumbai. Me and my friend are soon going to set up a I.T related business offering computer repair services as well as sale of old and new computers/Laptops.
We have decided to sign a partnership deed as well as Register it as a partnership Firm.

Since, we don't want to get into any sort of legal trouble, I am confused about the following things:

1. We will be registering our partnership firm. Does this mean we get licence to sell goods and issue bills under our firm's name? Or will we need to apply for a Gomastha(Gumasta) licence seperately?

2. We will be providing VAT Invoices to our clients/customers. In order to provide vat bills, one has to get a VAT number registered through Income Tax dep. TIN is required to register a vat number. Is TAN or PAN required to get TIN/VAT number? I mean is there a need to apply for PAN or TAN (or both) of Firm before applying for TIN?

3. We are going to provide computer repair services too, will we be have to charge service tax for this?

would appreciate any advice. Thanks in advance.

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)

13 February 2013 Charge of Service tax and vat it depends on the Turnover and receipt, accordingly if your total sales turnover exceeds Rs. 5,00,000/- in previous year or if you suppose to purchase taxable goods and you want to claim (Refund) tax which you have suppose to be paid on purchase, then you have to get register with Sales Tax Authority with initial deposit Rs. 25,000/- refundable.
If your Gross "taxable" receipt exceeds Rs. 9,00,000/- in previous year at any point of time then you have to register under Central Excise Authority as Service Tax Registration.

If your Gross "Taxable" receipt exceed Rs. 10,00,000/- in previous year at any point of time, then you are liable to collect Service Tax at prescribed rate (12.36 currently) from customer and paid to the Government .

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