When is registration under vat is compulsory?

DVat 4548 views 12 replies

Hello friends,

I have a query relating to VAT registration. Kindly help me in getting out?

My query is, suppose, if there is dealer in delhi who is neither registered under VAT Act not under CST Act (bcoz his turnover is less than 10 lakhs). He purchased goods from Delhi & sell them in Delhi only. Now, if he wants to purchase goods  from outside Delhi (say from Punjab), then can he purchase the goods from Punjab without getting registered under any Act? Or  will he necessarily be required to get registred under VAT Act only or under CST only or under both?

NOTE:- The  dealer wants to purchase from outside Delhi but he sells those goods in Delhi only.

Kindly give me the solution..

Thanks in advance..

Regards

Khushboo Goyal

Replies (12)

ALTHOUGH HE IS HAVING INTER STATE SALES ONLY BUT FOR PURCHASING THE GOODS FROM INTRA STATE  HE REQUIRES TO GET REGISTER UNDER BOTH THE VAT AND CST ACT...

Hi Khushboo,

A dealer is required to get registered under both acts i.e DVAT & CST.

Thanks,

Shobhit

Any Inter state sales and purchase required CST registration

Thanks to all for ur replies..

But, yesterday, while searching for my solution, i found an answer which contradicts all ur answers.

In Ready Reckoner, it is written that " On making inter-state purchases, it is not obligatory upon a dealer to apply for registration under the CST Act. A dealer is liable for registration under the CST only after making inter-state sale."

In my case also, the dealer is making inter-state purchases bt not making inter-state sale. He is making local sales.

So, whether he is liable to get registered under CST Act?  plz again clarify me..

Thanks and Regards

Khushboo

agree with your view but After CST registration you can avail profit of "C form"

Originally posted by : Sonu Kumar

agree with your view but After CST registration you can avail profit of "C form"

Ya, agree with u. Bt this is from an advantage point of view.

Bt, i m asking, whether it is mandatory to get registered in CST in my case?

 

I think  it is not mandatory to get registered in cst . but  you have not registered in cst act then paid to be  cst 4%. if you have got cst no. then you have to be to only CST 2%

Thanks

 

 

 

There is no mondatory to get registered in case of Inter state Purchase, registartion is required only in case of purchaser is purchasing goods against "C" form other wise full rate of VAT rate of Selling state will be impose 

Ok. Thanks to all... yes

& Nikumbh, registration under CST is not required for a dealer, that is ok, but registration under local VAT is also not required in this case?

yess...khusbu in ur case is no required to registration in vat or Cst.

thanx

 

U NEED NOT REGISTER BOTH THE CASE OF WITHIN STATE AS WELL AS INTERSTATE, because within the State ur threshold limit is not exceeded and in case of interstate u need to buy with the full Tax u cant avail the tax benefit by availing the Form-C(Only Registered Dealer)

Only god knows who is correct.

Can anybody share some written proofs.


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