I have few doubts related to VAT Registration & CST Registration.
1) Turnover Threshhold is Rs. 5 Lacs & Taxable Turnover is Rs. 10000/- for Compulsory Registration of VAT. If the said turnover isn't crossed, the application for voluntary registration has to be made. Am I correct?
2) If there is any interstate sales or purchase, it is mandatory to get CST Registration as per CST Act. And when you are applying for CST Registration, you are also required to register for VAT (if not already VAT-registered) by default. If I am right, it is not possible to get CST Registration alone without getting registered with VAT.
My question is:
For a firm which does not have VAT or CST Registration and want to make an interstate transaction, it becomes mandatory to get both VAT & CST Registration in spite of turnover not crossing the limit of Rs. 5 Lac. Will the firm be required to deposit Rs. 25000/- as security deposit since the turnover threshold has not been crossed or will it be considered a voluntary registration.
Your guidance will be appreciated.
CAclubindia
