Practical Issues in Registration and Filing of Returns under VAT

1. Practical Issues in Registration and Filing of Returns under VAT PRESENTED BY CA. KAUPIL DOSHI

2. APPLICABILITY • VAT Applies to all types of business segments including importers and exporters, wholesalers, retailers, works contractors and lessor. • Basic Condition for Applicability of Gujarat VAT Act :- • Sale in the Course of Business is affected, in the State of Gujarat.

3. INCIDENCE OF TAX (SECTION 3) Every DEALER whose turnover of Goods exceeds threshold limits given below, is liable to take Registration of Place of Business and pay tax under GVAT.- Note: The dealer incurring liability to pay tax under the CST Act is also liable to pay tax under Gujarat VAT Act.

4. IMPORTANT DEFINITIONS 1. “Dealer” means any person who in the course of his business, buys, sells, manufactures, makes supplies or distributes goods directly or otherwise, whether for cash or deferred payment or for commission, remuneration or otherwise. [Refer Sec. 2(10)]. Exceptions:- an agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally; an individual who sells exclusively any fish or any sea-food caught by him personally or by any member of his family on account of or on behalf of such individual; and a charitable, religious or educational institution, carrying on the activity of manufacturing, buying, selling or supplying goods, in performance of its functions, for achieving its avowed objects, which are not in the nature of business.

5. IMPORTANT DEFINITIONS 2. “Goods” means all kinds of movable property (other than newspapers, actionable claims, electricity, stocks and shares and securities) and includes live stocks, all materials, articles and commodities and every kind of property (whether as goods or in some other form) involved in the execution of works contract, all intangible commodities and growing crops, grass, standing timber or things attached to or forming part of the land, which are agreed to be served before sale or under the contract of sale. 3. “Declared goods” means goods declared to be of special importance in inter-State trade or commerce under section 14 of the Central Act. [Refer Sec. 2(11)].

6. IMPORTANT DEFINITIONS 4. “Place of business” Sec. 2(16) means any place where a dealer carries on business and includes:- A warehouse, godown or any other place where a dealer stores or processes his goods; Any place where a dealer produces or manufactures goods; Any place where a dealer keeps his books of accounts; Any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods; Any place of business of an agent by whatever name, called through whom a dealer carries on business.

7. IMPORTANT DEFINITIONS 5. “Total Turnover” Sec. 2(34) means aggregate of the following:- • Turnover of sales/purchase of goods within the State whether such sales/ purchase of goods are taxable or exempt. • Turnover of sales of goods in the course of Inter State Trade & Export of goods. • Turnover of sales by a dealer on his own account and also on behalf of his principal.

8. IMPORTANT DEFINITIONS 6. “Taxable Turnover” Sec. 2(30) means the turnover of all sales or purchases of a dealer during the prescribed period in any year, which remains after deducting the following:- • Sales not subject to tax. • Sales and purchase of goods specified in Schedule – I. • In case of turnover of sales in relation to works contract, the charges towards labour, service and similar expenditure heads.

9. PRACTICAL ISSUES FOR REGISTRATION

10. ISSUES AT THE TIME OF REGISTRATION • The Dealer does not have any Residence Place at the Place of Business. • The Dealer does not have either Place of Business nor Place of Residence in his name. • The Dealer is applying compulsorily for Registration as per Sec. 21 say after 20 days of crossing the limits of Turnover as specified in the Act then what would be the effective date of Registration under VAT Act as well as under CST Act.

11. ISSUES AT THE TIME OF REGISTRATION • The Dealer who is mandatorily liable to take Registration have not applied for Registration in time, so what will be the effective date of Registration. What would happen to the Stock lying on the effective date of Registration i.e. whether Tax Credit of such Stock would be available to the Dealer ? • The Dealer have applied for Voluntary Registration then what will be the Effective Date of Registration. • What are the circumstances under which a Dealer can transfer its business along with the TIN & CST Number ?

12. ISSUES AT THE TIME OF REGISTRATION • Is it mandatory to make application online for taking Registration ? • What if after making an application for Registration the Registration Number is not generated ? • Can a Dealer Change his name of business and amend the Registration Certificate accordingly ?

13. CERTIFICATE OF REGISTRATION UNDER VAT CERTIFICATE OF REGISTRATION UNDER CST

14. PRACTICAL ISSUES IN FILING OF RETURNS

15. Issues in Filing of Returns • What is the periodicity of Filing of Returns ? And what is the time limit for each category of Returns ? • Is it mandatory for all the Dealers to File E-Returns ? • What would you do if after submitting the returns you forgot to generate the Acknowledgement of filing the Returns ? • Is there any system for getting Duplicate Receipts for Returns uploaded ?

16. Issues in Filing of Returns • What would be generally the periodicity of a Dealer who is filing the Return for first time after Registration ? Can this category be changed during the year ? • Can a dealer change his periodicity of filing the return by his own if he is filing E-returns? • Can a Dealer file the Returns without payment of Tax ? • Is there any provision in relation to Revise Returns ? And what is the time limit to revise the Returns.

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