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Small Dealer under Vat

891 views 3 replies

Freestyler

nil

53 Points Joined December 2009

Suppose a small dealer started his business on 1st april and is not registered under Vat act. And on 25th Dec. his gross annual turnover exceeded Rs. 5,00,000. Now he is required to get registered within 30 days from 25th Dec.

After registration does he have to pay Vat on sales made before 25th Dec?

Replies (3)

Guest

No, In such case he will be entitled to get exemption of Rs.500000. Tax is to be levied on sales of above Rs.500000.

Freestyler

nil

53 Points Joined December 2009

Thanx for that rply shashin. Now suppose he registered under Vat and his turnover during the year exceeded Rs. 50,00,000. But next year he knows by some reason that his turnover will not exceed Rs. 50,00,000. Can he opt for composition scheme next year?

Guest

Previous year Turnover is not a basis for opting for composition, If during the year in which composition has been opted Turnover exceeds Rs.50 lacs option of composition shall stand revoked.