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Sutharsanan (Specilaist)     30 December 2013


Dear Sir,

We have started a new Retail shop for selling of Chimney, Gas stove and Bulb at Hosur. The Source of products is getting procured from within state of Tamil Nadu only with payment of applicable VAT. The yearly turnover would be 2.5Lakh. In taxation perspective, we have few questions listed below.

1)      Do we needed to obtain TIN number.

2)      Ours is small shop and fall under VAT exemption (Not exceed 10Laksh category). So while selling the product to Consumer, Do we need to collect the VAT in invoice.

3)      Anyway we are in exempted category, we pay VAT while procured the product from Supplier. Can we get the refund of VAT portion of input source?

4)      Do we need to maintain any kind of register/ledger and support documents? If yes, what are the documents and what would be the format of ledger.

5)      Any returns to be filed to VAT department?.

6)      If any other information, please.



Regards/ Sutharsanan


 3 Replies

Mahesh V.P. (Advocate)     31 December 2013

  1. 01. You need not get registered under TN VAT Act if your purchases and sales are within the state as your Yearly Turnover well below the minimum required under the Act.
  2. Since you are not registered you should not collect VAT from your customers
  3. No you can not claim input credit as your turnover is well below the required turnover for claiming input credit under the Act
  4. The burden of proving the turnover is below the taxable limit is with you so it is desirable that you preserve at least your Purchase bills and Sale Bills
  5. You need not file returns as you are not registered under the TN VAT Act.

Margesh D. Gandhi (Tax Consultant)     15 January 2014

1.Your turnover is less than limit so you are require to take vat tin no. 2. If you are not register dealer then you have to not charge vat to customer 3. Your are not register dealer then you can't claim ITC 4. You have to maintain books of account and fill income tax return. So you can prove that you are below limit. 5. Once you are not register delear you need not require to file vat return

Margesh D. Gandhi (Tax Consultant)     15 January 2014

Sorry in first point you are not require to take vat tin no. Below limit

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