Friday, January 21, 2011

WHO HAS TO BE REGISTERED FOR VAT?

Any dealer conducting a business or intending to conduct a business may apply to be registered for VAT. However all persons conducting a business must register for VAT from the date they commence business if they believe their taxable turnover will exceed a threshold of Rs.40 lakhs in 12 consecutive calendar months.

All dealers must register for VAT if their taxable turnover exceeds Rs.10 lakhs for the preceding three consecutive calendar months.

Regardless of their taxable turnover the following dealers must register for VAT at the commencement of their business:
    Every dealer importing goods in the course of business from outside the territory of India;
    Every person residing outside the State but carrying on business within the State;
    Every dealer registered or liable to be registered under the Central Sales Tax Act 1956, or any dealer making purchases or sales in the course of inter-state trade or commerce or dispatches any goods to a place outside the State otherwise than by way of sale;
    Every dealer liable to pay tax at Special rates specified in Schedule VI of the AP VAT Act 2005;
    Every commission agent, broker, del credere agent, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of his non-resident principal;
    Every person availing an industrial incentive in the form of a tax holiday or tax deferment;
    Every dealer executing any works contract exceeding Rs 5 lakhs for the State Govt. or a local authority and any dealer executing works contracts and opting to pay tax by way of composition.

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