Vat registration

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This query is : Resolved

CA. Mala Rohara (Querist)

29 May 2017 A pvt ltd is incorporated in Punjab. Is it mandatory to get registration in Sales Tax?If yes, then when we need to get registered?

Guest

Guest (Expert)

29 May 2017 It will depend in which business your company is engaged in depending on that I can answer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 August 2025 Hi! Here’s what applies for a Pvt Ltd company incorporated in Punjab regarding **Sales Tax (VAT) registration**:

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### 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**.

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### 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.

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### 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 |

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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!

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