Vat applicability

Others 599 views 4 replies

Pooja

194 Points Joined May 2010

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)

Subramanya

Tax Consultant

526 Points Joined March 2010

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