urd limit

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kavita (Querist)
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01 April 2011 i want to know the purchase limit from urd dealer? & if we cross that limit then what should we do? we will be liable to pay the vat or not? please reply me.

prasad

prasad (Expert)
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01 April 2011 Under MVAT Act, the limits now are fixed on sales side and not on purchase side. The Limit of sales for Registration is. Rs.5.00 lacs. If you cross the sales limit of Rs.500000/= in any accounting year you are eligible for MVAT registration.

And you have to Pay VAT on the total sales - Rs.500000/= as per the schedule entries.
(This Rs.500000/= is one time)