Fahmeedha parveen (student) (76 Points)
05 May 2009Hello
My friend has started a co and has registered it under small scale business.They are into the business of selling computer equipments and parts to companies.They have a made a sale to a registered company.Shpuld they charge sales tax for this and if so do they require a TIN no to do this?Can anyone brief on this.When can they raise sales tax and what requirements should they fulfill to do this
Nitin Jain
(Article Assistant)
(25 Points)
Replied 06 May 2009
Dear parveen,
If your co. is making local sales i.e within the state then you are not liable to charge sales tax upto turnover of rs. 10 lakhs . if your local sales exceeds rs. 10 lakhs then you have to charge sales tax . for that u have to apply for sales tax regd. i.e you have to obtain TIN no.
and if you are making central sales then within 30 days of making central; sales you have to take registration under central sales tax act
if u have any doubt further then post your quiery
Fahmeedha parveen
(student)
(76 Points)
Replied 06 May 2009
Thanks a lot.That was really helpful.Will ask u after discussing with my friend in case of further clarification needed.
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
R B Banwat
(tax consultant)
(154 Points)
Replied 07 May 2009
1. Which State, thats very important. each state have different limits for regsitration.
2. There are also provision for voluntarily regsitration in each state.
3. If the business is going to be continued one, then its best to go for voluntarily regsitration immediatel. The reason is very simple, , you loose credit of taxes paid on your purchases, thus your purchase cost is unnecessarly increased by VAT amount and you may losse the order in competitive market.
thats all for the pen present
CAclubindia
