VAT Registration

Registration

 Liability to register.- ) Every dealer whose total turnover exceeds or who

reasonably expects his total turnover to exceed two lakh rupees, as computed under the

provisions of the Karnataka Sales Tax Act 1957 (Karnataka Act 25 of 1957), in the year

ending Thirty First day of March 1[2005] shall be liable to be registered and report such

liability on such date as may be notified by the Government.

1. Substituted by Act 6 of 2005 w.e.f. 19.3.2005.

(2) Every dealer who at any time has reason to believe that his taxable turnover is

likely to exceed two lakh rupees during any year after the year ending Thirty First day of

March 1[2005] shall be liable to be registered and report such liability forthwith or on such

date as may be notified by the Government.

1. Substituted by Act 6 of 2005 w.e.f. 19.3.2005.

(3) Every dealer whose taxable turnover exceeds fifteen thousand rupees in any one

month after the date from which the tax shall be levied, in accordance with Section 3, 1[xxx],

shall register forthwith.

1. Omitted by Act 11 of 2005 w.e.f. 1.4.2005.

(4) Every dealer to whom a business or part of a business is transferred by another

dealer who is liable to be registered under this Act, shall apply for registration from the date

of that transfer, if he is not already registered.

(5) Every dealer liable to register under sub-sections (2), (3) or (4) shall report his

liability to be registered in the prescribed manner at the end of the month on which that

liability arises or on such date as may be notified under sub-section (2).

(6) Every dealer who obtains or brings taxable goods from outside the State, whether

as a result of purchase or otherwise, shall be liable to be registered after such first purchase

or procurement irrespective of the value of goods purchased or procured and shall report

such liability at the end of the month in which such purchase or procurement takes place.

2004: KAR. ACT 32] Value Added Tax 233

(7) Every dealer who exports taxable goods is liable to register after the first export

and shall report such liability at the end of the month in which such export takes place.

(8) Every dealer who effects sale of taxable goods in the course of interstate trade or

commerce or dispatches taxable goods to a place outside the State is liable to register after

the first sale or dispatch and shall report such liability at the end of the month in which such

sale or dispatch takes place.

(9) Every casual trader and every non-resident dealer or his agent shall be liable to

register after his first sale irrespective of the value of the taxable goods sold and shall report

such liability forthwith.

1[(9-A) Every dealer engaged in the execution of works contract shall be liable to

register and shall report such liability after the end of the month in which execution of any

works contract is undertaken.”]

1. Inserted by Act 6 of 2005 w.e.f. 19.3.2005.

(10) In determining whether a person is liable to be registered under sub-sections (1),

(2) or (3), the prescribed authority may have regard to the total or taxable turnover or total

receipts of any other person where both persons are associates, and, where the prescribed

authority deems that any business has been deliberately broken up into smaller businesses

to avoid registration, the prescribed authority may issue a notice requiring those businesses

to be registered as one business entity.