Vat querry

Mahavat 593 views 2 replies

Rajan

Employee

52 Points Joined January 2010

Hey, I hv query regardin VAT, Plss giv ur suggestions :

one person is havin two division, one is furniture and other is food. they hv taken single vat registration no. n VAT @ 12.5 % is charged on selling furniture n food items. now, the food div wants to go for composition scheme as the rate of vat will be lesser.

my query is whether they can do it wid same VAT no. n if yes wht is d procedure? n how it can b reflected in VAT return?

Replies (2)

MJ Krishnamurthy

ACCT(Retd)

7197 Points Joined July 2010

You can have partly selling furniture and partly hotel business. For hotel business you can opt for composition by filing a letter to the area VAT officer aaand taking permission. The accounts of these two types of sales are to be maintained sepertely.In form 233 itself you can report both the composition and sales returns and pay tax collectively......mjk

Rajan

Employee

52 Points Joined January 2010

Thanks for your reply Sir.

The person wants to opt for Composition just for Furniture Division and hence at the time of filing return he has 2 different sales turnover for VAT liability. One for Composition and other as 12.5 %.

Firstly is it possible to do so with one VAT registration number? If yes, any prescribed procedure ?

Also in the above case which return (Form) should be filled ?