Department of Commercial Taxes Goa : Application for VAT Registration

Organization :Commercial Tax Department Goa
Facility : Application for VAT Registration

Home Page :http://goacomtax.gov.in/salestax_content_disp.php?type=T&cid=3
Register here :http://egov.goa.nic.in/comtax/VATRegForm1.aspx

VAT

** VAT is the short form of Value Added Tax.

Related : Goa Commercial Taxes Department Filing of Returns for VAT, TDS, CST & COT : www.statusin.in/3731.html

** VAT is the tax that has replaced the earlier levy of Sales Tax. Under the earlier first point system of levy of tax, the manufacturer or the importer of goods into the State was liable to sales tax. There was no levy of sales tax on the further distribution channel.

** VAT, in simple terms, is a multi point levy on each of the entities in the supply chain with the facility of set off of Input Tax i.e., the tax paid at the stage of purchase of goods by a trader and on purchase of raw materials by a manufacturer. i.e., only the value addition in the hands of each of the entities is subject to tax.
** The levy of VAT is administered by the Goa Value Added Tax Act, 2005 and the rules made thereunder.

Advantages of VAT :
i) Set off is available.
ii) No separate levy of surcharge or Additional Tax.
iii) Shares the burden to all levels of supply chain.
iv) Taxes only the value addition.
v) Fewer rates.
vi) Entry Tax is vatable i.e., it can be claimed as input tax credit.
vii) Self assessment by the dealers.

Who are liable for registration under VAT :
The dealers, whose turnover during the financial year 2004-05 has exceeded the limit of turnover or dealers, who are registered or liable for the registration under Central Sales Tax Act, 1956 as on 1/4/2005 are liable to pay tax on sales effected by them from 1/4/2005.

Limit of turnover :
a) Rs.10,000/- in case of non resident dealer and casual trader.
b) Rs.1,00,000/- in case of importer/manufacturer.
c) Rs.5,00,000/- in any other case.
The dealer, who had not exceeded the limit of turnover during the year 2004-05, will become liable from next date on which the turnover has exceeded the turnover limit.
Every dealer exporting any goods outside India or effecting stock transfers to any State and Union Territories within India, shall be liable to pay tax on all taxable sales effected within the State.

Fees for registration :
The dealer has to pay the registration fees as per the turnover limit. Registration Certificate is valid for three years and has to be renewed on payment of fees.

Category of dealer Amount of registration/renewal fees :
Turnover limit upto Rs.5 lakhs. Rs.1000/-
Turnover above Rs.5 lakhs and uptoRs.40 lakhs. Rs.3000/-
Turnover exceeding Rs.40 lakhs but Below Rs.1 crore Rs.5000/-
Turnover of Rs.1 crore and above. Rs.10000/-
Voluntary registration Rs.2000/-

Rates of tax under VAT :
The rate of tax under VAT is as follows :
a) Goods specified in Schedule A. AT 1%
b) Goods specified in Schedule B. AT 4%
c) Goods specified in Schedule C. AT shown against each entry
d) Goods specified in Schedule D. Nil tax
e) Any other goods. AT 12.5%

Eligible for Composition of tax :
Any registered dealer covered under Schedule E, whose turnover in the previous year does not exceed Rs.50 lakhs, and who is liable to pay tax under section 3 is eligible to apply for composition of tax. The dealer has to apply to the Appropriate Assessing Authority in Form VAT-XIII within 30 days from the date of commencement of the financial year. However, the Appropriate Assessing Authority may entertain application beyond 30days but not later than 60 days on payment of additional fees of Rs.50/- per day of delay. The dealer liable for registration under sub-section (2) and (3) of section 3 may apply at any time during the year, by making a self declaration that his turnover during the year will not exceed the specified limits.

Following dealers are not eligible for composition of tax :
a) When he makes interstate sales.
b) When he brings any goods in the State of Goa.
c) When he makes consignment sales or stock transfer out of Goa.
d) When he makes sales in the course of import of goods or export of goods out of Territory of India.
e) When he brings or receives goods from other States.
f) When he manufactures any goods for sale except when they are sold in hotel including bar and restaurant.
g) When he is a non-resident dealer.
The composition certificate issued is valid for one year and can be renewed every year upon application to be made within 30 days of the commencement of the year alongwith declaration as regards to his turnover during the immediate preceding year.

Input Tax :
Input Tax has been defined in section 2(r) of the Goa Value Added Tax Act, 2005 as “ Input Tax means tax charged under this Act by a registered dealer to another registered dealer on purchases of goods in the course of business.”

Input Tax Credit :
Input Tax credit is the credit for tax paid on inputs. Every dealer is liable for output tax on the taxable sales effected by him. The basic principle of VAT is that every dealer pays tax only on the value addition in his hands. Input tax credit is the mechanism by which the dealer is enabled to setoff against the output tax, the input tax.