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Registration required or optional

RAJASEKHAR (Article Assitant) (126 Points)

15 August 2015

dear all my uncle doing business trading of clothes. buy from supplier and sell to individuals at margin. During the year sales made to customers around 10 lakes. is it compulsory to register under vat or if not registered what are consequences please explain

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10 Replies

Sathish M (Management Accountant) (40581 Points)
Replied 15 August 2015

Which state are you talking about ?

Harsha (v) (76 Points)
Replied 15 August 2015

apply karo

CA Ayush Agarwal (Practice) (122 Points)
Replied 15 August 2015

In case you are talking w.r.t the Maharashtra state, the turnover limit of sales or purchases for registration is Rs.10 lacs.

Anurag (Student) (21 Points)
Replied 15 August 2015

Sir, if u don't go for the the registration then you cant avail the Input Tax Credit.

Rahul Khatri (100) (33 Points)
Replied 15 August 2015

In Rajasthan vat registration is required when T/O goes up 9 lakh .

Ashok J (CA Final) (880 Points)
Replied 15 August 2015

Limit differs from each state...its 10 lacs in karnataka......if turover more than limit regn compulsory

(Guest)

As said by above friend that limit differs state by state.In the state like Maharastra the turnover limit is 10 lacs. Registration is compulsory for those dealer whose turnover exceeds 5 lacs or 10lacs as the case may be. In case a dealer does not register himself under the VAT Act, he can not avail tax credit and this would consequently increase his cost , thereby reducing profit. Regards SONU JHA