Sales tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 In Tamil Nadu there is no sales tax if the total turnover in year is less than Rs.10 lacs.When there is no tax liability there is no need to get VAT registration.

A firm wants to sell the goods to a person in another city within tamil nadu and the goods has to pass through some check post.As the firm is not liable to register under VAT, What documents a firm should submit to the Check post authorities to show that they are not liable to get registered under the VAT act.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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22 January 2011 Vat regiustration may be taken where there is no tax liability. Since you are not a registered dealer , you prepare the invoice showing the VAT is not applicable as per sec ( tax not apply up to Rs. 10 lacs).