Which is best whether tot or vat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2014 MY RELATIVE IS GOING TO START A BUSINESS WHICH COMPRISES OF ANNUAL TURNOVER 15 LAKHS.WHICH IS BEST WHETHER REGISTERING AS A VAT DEATER OR TOT(TURN OVER TAX).PLEASE SUGGEST ME WITH DETAILED

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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30 October 2014 This question is to be decided on the basis of 1) profit ratio,2)Difficulty in maintenance of accounts , 3) TOT ratio. and type goods sold.When the profit ratio is high,if retail sales are done in small quantities,when much bargaining is made by customers,and high rate of VAT is applicable on the type of goods dealt,then TOT is benificial.If no VAT is better.Under TOT it is easy to file return and keep accounts.Detailed accounts for purchases and sales and stock under different rates is necessary for VAT. For TOT or COT consolidated and common purchases and sales accounts are enough.Similarly filing of returns under TOT is simple....mjk