When is vat registration required ?

Dear Anuraj

There are two options available for Registration
A) Compulsory
B) Voluntary

further registration becomes compulsory when a)TAXABLE ANNUAL TURNOVER exceeds Rs. 10 lakhs
b)dealer is IMPORTER or liable to be registered under CST 1956

Explanation
(White Paper initially allowed limit of 5 lakhs, whereas states allowed this limit to 10 lakhs provided the state will bear revenue loss above 5 lakhs)

Dealer can also get itself registered voluntarily even if turnover doesn't exceed 10 lakhs.