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Query relating to karnataka vat

Vinay B L (Company Secretary) (140 Points)

15 November 2012

Dear Members,

XYZ Private limited (Company is in Bangalore) which is a subsidiary Company of a US Company, whose main object is developing software and selling the same to its parent company.

Kindly let me know whether VAT registration is required for this Company. If so for what purpose? Pl enlighten me with the applicable provisions.

Thanks & Regards

Vinay B L

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Ramakrishna Kamat (CA) (76 Points)
Replied 15 November 2012

The following provisions of Karnataka VAT Act should help you.....

22. Liability to register.-

(7) Every dealer who exports taxable goods is liable to register after the first export and shall report such liability at the end of the month in which such export takes place.

12. Deduction of input tax in respect of Capital goods.- (1) Deduction of input tax shall be allowed to the registered dealer in respect of the purchase of capital goods on or after the commencement of this Act for use in the business of sale of any goods in the course of export out of the territory of India and in the case of any other dealer in respect of the purchase of capital goods wholly or partly for use in the business of taxable goods.