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VAT 240

H S Rajashree (MBA in Finance) (221 Points)

03 February 2011

We have not filed VAT 240 as we did not have total turnover exceeding 40L for FY 09-10. Our entire turnover is service taxable and had been shown as exempt turnover in our VAT returns. Hence we have been issued a notice for non compliance on VAT 240.

Please suggest a way out for the above.

Rgds

Rajashree

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7 Replies

Ravi Prasad (Self employed) (148 Points)
Replied 04 February 2011

Submit reply to the notice explaining as to why you are not bound to submit the VAT 240. That's all

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Ambarish M B (Article Assistant) (33 Points)
Replied 05 February 2011

Hello,

VAT Audit is to be conducted and VAT-240 is to be filed if Taxable turnover exceeds 40lacs. But in your case neither your turnover exceeds 40lacs nor its covered by VAT act. So you are not liable to file VAT-240. hence its advisible to submit the reply for the notice by mentioning the fact for non filing.

H S Rajashree (MBA in Finance) (221 Points)
Replied 05 February 2011

Originally posted by : Ambarish M B

Hello,

VAT Audit is to be conducted and VAT-240 is to be filed if Taxable turnover exceeds 40lacs. But in your case neither your turnover exceeds 40lacs nor its covered by VAT act. So you are not liable to file VAT-240. hence its advisible to submit the reply for the notice by mentioning the fact for non filing.

Their reason is like this. Just because we mentioned exempt turnover(Service taxable) which is over 40L they have issued this. But actually according to them we need not mention the ST turnover as exempt in VAT 100. They have called us personally and we need to see what they have to say.

Ambarish M B (Article Assistant) (33 Points)
Replied 10 February 2011

Hello,

According to VAT Provisions, If taxable turnover exceeds 40 lakhs then the assessee is liable to file VAT form-240. but in your case your income is taxable under Service tax Act so which cannot be the taxable under VAT act again. and also you are not liable to file form-240.