I am doing a business and i am under the 0.5% tax scheme. i know i am eligible for this only my turnover is up to 50 lakhs. i like to know whether i can switch over to regular tax scheme of claiming input tax and paying vat tax according to the tax rates of purschase and sales, once my turnover crosses 50 lakhs. is there any provisions in the act to automatically switchover, or i need to inform the official concerned. if any body knows the solution to the above pls. post
viswanathan
Dear Arunachalam,
As per section 3(4)(b), once your TO reaches 50 lacs you must inform within 7 days to the Assessing authority. YOu must pay taxes on all sales of Rs.50 lacs and above and he is entitled to the input tax credit on the purchases made from that date and on the stock available on that date. But the stock is taken only from the purchases made within 90 days from the date in which the TP exceeds 50 lacs
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