Vat tax on family restaurant in A.P

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srinivas (Querist)
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12 February 2011 We are staring a chain link family restaurants in vijayawada, A.P. we have to apply for vat registration after taking the registration what forms we have filed to department and what rate we have to pay on sales turnover. pl. inform us the slabs in detailed format to understand easily.

N.Srinivas

B R Ramesh

B R Ramesh (Expert)
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12 February 2011 Hi

you need to file the VAT return monthly basis.

and the rate of tax is 14.5% of VAT

srinivas

srinivas (Querist)
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12 February 2011 Thanks for your reply but my friend suggested to pay vat tax for 5 -40lakhs per annum turnover only 1% TOT , 40-150 lakhs turnover 4% vat and 150 lakhs above per annum 14.5% of VAT. Pl. confirm and reply me on the above.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Here's a summary regarding VAT on family restaurants in Andhra Pradesh (A.P.) based on your query and the info shared:

### VAT Registration & Filing

* You **must register for VAT** once your turnover crosses the threshold limit.
* VAT returns are generally filed **monthly**.

### VAT Rates & Turnover Slabs (Typical Structure in A.P. around that time)

| Annual Turnover (INR) | VAT Rate |
| --------------------- | ----------------------------------------------------------- |
| Up to 5 Lakhs | No VAT or minimal tax (often exempt or nominal) |
| 5 Lakhs to 40 Lakhs | Around **1% TOT (Turnover Tax)** |
| 40 Lakhs to 150 Lakhs | Around **4% VAT** |
| Above 150 Lakhs | **14.5% VAT** (Standard rate on sale of goods and services) |

### Additional Notes:

* TOT (Turnover Tax) is a simplified tax applicable on smaller turnover slabs instead of full VAT.
* For restaurants, VAT is generally applicable on sale of food items (not on pure services like service tax).
* You need to regularly file VAT returns with the A.P. Commercial Taxes Department using the prescribed forms (usually monthly).
* Keep in mind **food/beverages VAT rates might vary** slightly based on type of goods (liquor attracts separate taxes).

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**Summary:**
Your friend’s info seems correct — smaller businesses pay TOT (around 1%), medium turnover attracts 4%, and above that, full VAT at 14.5% applies.

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If you want, I can help you with exact form names, filing procedures, or detailed slab-wise examples. Would you like that?

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