03 August 2025
Hi! Here’s what applies for a Pvt Ltd company incorporated in Punjab regarding **Sales Tax (VAT) registration**:
---
### Is Sales Tax (VAT) Registration Mandatory for Pvt Ltd in Punjab?
* **Yes, it is mandatory to register under VAT/Sales Tax in Punjab if your business activities fall under taxable sales of goods.** * Registration is **compulsory if your turnover exceeds the prescribed threshold**.
---
### When to Register?
* **You must get registered before commencing business operations** or **within 30 days of becoming liable for registration.** * **Threshold limit:**
* In Punjab, if your **aggregate turnover (sales) exceeds ₹5 lakhs** in a financial year, registration is mandatory. * Even if turnover is below threshold, **registration can be done voluntarily** to avail input tax credit and other benefits.
---
### Summary:
| Situation | Registration Required? | When to Register | | ----------------------------- | ---------------------- | ---------------------------------------------------------------- | | Turnover > ₹5 lakhs in Punjab | Mandatory | Before starting business or within 30 days of crossing threshold | | Turnover < ₹5 lakhs | Optional | Voluntary registration possible |
---
If you want, I can also help you with the **step-by-step procedure for Sales Tax registration in Punjab** for your Pvt Ltd company!