18 February 2012
Hi to All... One of My Client company is carring on Construction activities and during the middle of the Year VAT Registration of the company has been cancelled by VAT authorities for some or other reasons.
Now My Queri is what is the impact on the company if it fails to continue the activities without renewal of VAT?
18 February 2012
VAT registration mandatory for everything, without that.
1. you may treated as unregistered dealer under VAT and non compliance of registration as per VAT act. you may be attracted for penalty
2. As unregistered dealer, you will lose the input VAT benefit as well as your customers also.
3. all the other registration, Banking, loans everything now days based on the VAT & other registration. you cannot approach for these things to any bank
4.I guess since you are doing construction activites, where ever you apply for the business, first they will ask these statutory requirement only. without these you may lose the business also.
CAclubindia
