Kapdawala (Manager) 24 January 2014

Cost for sales/cst tax registeration

Hi,

I am setting up a sole proprietership in the School Education Training and Products space.

I wanted to register for Sales (VAT) Tax/CST on a voluntary basis. My current sales have not crossed (5 lakhs or whatever the exemption limit is). However to open a current bank account in the name of my company, I need two government registerations.

I wanted to enquire what are the charges for voluntary Sales Tax Registeration. I read somewhere that the regular fees is Rs. 500, however voluntary carries a fees of Rs. 5000 and a deposit amount of Rs. 25,000 for 3 years.

Is this information correct?

Thanks

Warm Regards

Kapil Aggarwal

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2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 24 January 2014

CAN I APPLY FOR VOLUNTARY REGISTRATION?

Yes. However, your activities must constitute a business for VAT purposes and you will be required to meet the conditions laid down in the AP VAT Act 2005.

WHEN DO I BECOME LIABLE TO REGISTER FOR VAT?

If you are in business in the categories listed in the Answer to the Question 1 above, you must register prior to the commencement of your business. For other businesses, if you are commencing a business and expect your taxable turnover to exceed, in 12 consecutive calendar months Rs.40 lakhs you must register for VAT at the commencement of the business.

If you intend to make inter-state purchases or sales or intend to dispatch goods outside the State other than by way of sale, then you must apply for VAT registration before applying for CST registration.

Other dealers have to consider their taxable turnover for the preceding 3 months and preceding 12 months. If during the past 3 months their taxable turnover exceeded Rs.10 lakhs, or exceeded Rs. 40 lakhs in the past 12 months, they must apply for VAT registration by the 15th of the following month.

V.Devananda Narasimham (Advocate) 27 January 2014

Sir,

According to AP VAT Act what is the minimum sales turnover required to take registration? What is the assessable turnover ? What is the meaning of taxable turnover exceeded Rs.10 lakhs, or exceeded Rs. 40 lakhs in the past 12 months to take VAT registration under AP Act? This is only for comparative study.

Thanking you