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Registration for vat

renuka kadge (CA Final Student) (148 Points)

27 March 2009

Hi Everyone
I have certain issues kindly help me out?
My Co. is going to deal in the Product Sales for the 1st time. for which we have to get VAT registration.but my point is that when we are importing the goods to our HO & selling it Locally then we have to get registration(VAT) for the HO.but what if i send the product to our CO. branches in other States then i have to get Registrated for the branches also????

Second point is that if we are importing the goods directly to the branches & selling it there locally. then i hv to get registed for the HO & branches also????

Early reply will be highly appreciable.
Thanks
Ms. Renuka S. Kadge CA finalist

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4 Replies

CA Chetan Jain (Chartered Accountant) (47 Points)
Replied 27 April 2009

Respected mam,

First of all remember dat u have to compulsory registered for vat if ur total turnover exceeds 10 lacs.

and u say dat u r selling the goods locally and for dat u will recieved the vat from customers which u have to pay to the dept and for dat u have to registered voluntary with the dept.

and if u r importing goods and transfer them to ur other branches, den u have to obtain "FORM F" from the branch to whom u transfer the stock. and dat F FORM u have to submit to the dept, which proves dat it is not a sale, it is a stock transfer but if u doesnot submit the respective form den it will be considered as sale and cst will be applicable which u have to give to the dept.

regards,

chetan

ca final year student.

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renuka kadge (CA Final Student) (148 Points)
Replied 27 April 2009

THks

ur giving CA final in June All the best

Anoop (Service) (345 Points)
Replied 27 April 2009

Once you received or sent/sold the material out side the state whether from/to HO/branch or others, you will have to get compulsory registration with vat & cst.

R B Banwat (tax consultant) (154 Points)
Replied 29 April 2009

1.Registration under VAT generally depends upon crossing requisite LOCAL sales turnover limit during the financial year. e. g. In maharashtra States its Rs. 5 Lakh. So it all depends upon crossing certian limits of turnover. There are also provision ofr voulantarily regsitartion upon payment of deposit or additonal fees. It all caries state to state. So point no one is cleared,

a. Regsitartion is compluosry if you crosss the to limit.

b. Go for volunatarily regsitration, if you wish to claim setoff of Input taxes ,without waiting for crossing of TO limit, or as in your case you wish to transfer goods to branches , where F Form will be required to issue for goods transferred

2. Goods imported by HO - transfer to branches in different states - HO and branches will be required to get registered in respective states under Local VAT as well as CST Act. Do rememeber that F form is complusory for branch transfer, otherwise entire branch transfers will be taxable under CST Act . No F form can be issued for URD period. So its best to go for voluntarily regsitration.. If you are regsitered under LOCAL VAT Act, No turonover is require to regsiter under CST Act. ( Bonus - one to one free). Otherwiseunder CST act once u sell even a single Rupee sale as interstate sale, you are require to register under CST ACt.

3. If goods are directly imported by branches and sold locally in their respective state, and NO TO in HO, only branches will be required to regsitered upon crossing the requisite limit of sales in that state.

4. Most importnat point, there is Drawback claim you can claim on Import duty paid as SAD ( Special Additinal Duty) provided you are paying VAT on the goods so imported. You have to make application to the concerned authorities for the same within prescribed period.

thats all for the pen at present

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