AP VAT Act.
VAT procedures – Registration:
Registration is the process of obtaining registration certificate (RC) from the Authorities. A dealer who is registered under the VAT act is called registered dealer. A dealer, who intends to carry on the business of purchase and sale of goods with in the state and is liable to pay tax, cannot carry the business unless he is registered and holds registration certificate under the Act.
Eligibility for registration:
As per the provisions contained in the white paper, registration of dealers with gross annual turnover above Rs.5 lakh will be compulsory. There will be provision for voluntary registration. All existing dealers will be automatically registered under the VAT Act. A new dealer will be allowed 30 days time from the date of liability to get registered. An application for registration should be made to the VAT commissioner.
Compulsory registration:
If an assessee fails to obtain registration under the VAT Act, he may be registered compulsorily by the commissioner.
Voluntary registration:
A dealer otherwise not eligible for registration may also obtain registration if the commissioner is satisfied that the business of the applicant requires registration. The commissioner may also impose any terms or conditions that he thinks fit.
Cancellation of registration:
The registration can be cancelled on:
- Discontinuance of business, or
- Disposal of business, or
- Transfer of business to a new location, or
- Annual turnover of a manufacturer or a trader dealing in designated goods or services falling below the specified amount.
Small dealers and composition scheme
Principles laid down in the white paper in relation to composition scheme read as under:
