Doubt regarding VAT

This query is : Resolved

Devendra (Querist)
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15 February 2011 Mr. X wants to sell some computers to a school. But the school authority says they will not purchase the computer from Mr. X as he does not charge VAT on the Sales. Actually Mr. X has not obtained VAT Tin No. The turnover of Mr. X is around Rs.1 Lac. What can you suggest for Mr. X? Should he register under VAT?

caferoz

caferoz (Expert)
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16 February 2011 Devendra,

Though the TO is within the requirement for not registration under VAT (9 Lacs need - 10 Lacs register).

As a best practice Mr.X can register under VAT as many of the buyers are prefer registered dealers, further cost of registration is minimal.