Vat applicability

Hi Friends,

I have a client who is a dealer of wall paintings, art work, sculptures in Gujrat. At the moment, he is not registered under VAT. He will be participating in an exhibition in Bangalore. Now my question is 

1) What would be the proviions of VAT applicable to him? will he liable to pay VAT if his sale off paintings exceed 5 lacs?

2) Also, since the exhibition is in Bangalore and consequently sale would be in bangalore, will he liable to Gujrat VAT or not?

3) Should he register under Gujarat VAT as registered dealer or not?

Friends, kindly let me know your opinion so that I can guide him correctly

 

Thanks in Advance

Replies (4)

Hi Poonam,

Currently i am not sure whether wall paintings, art work, sculptures are considered as goods or Servicers or Works contract.

Incase if it is coming under Goods / Works contract then VAT will be applicable

As the dealer is a setting up a stall in exibition, he can go for "Casual Dealer" registration. Commercial Taxes department may permit to trade in karnataka for a specific period. 

Also i think registration exemption limit is not applicable for a Casual Dealer.

With regards,

Subramanya 


 

Thank you Subramanya,So should i Advise him to register under Gujrat VAT? Andshould he opt for composition scheme? Actually I have not yet come across any substantial written material to support my opinion.

 

 

Thank you Subramanya,So should i Advise him to register under Gujrat VAT? Andshould he opt for composition scheme? Actually I have not yet come across any substantial written material to support my opinion.

 

 

Since the exibition is there in Bangalore, your client has to register with Karnataka VAT department as a "Casual dealer".

With regards,

Subramanya

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