Value Added Tax
Value Added Tax (VAT), is a special type of indirect tax in which a sum of money is levied at a particular stage in the sale of a product or service. It is a multi point sales tax with set off for tax paid on purchases. It is basically a tax on the value addition on the product and the burden of tax is ultimately born by the consumer of goods. At present there is no proposed Central VAT at present in the time frame of 1.4.2003. All the States are drafting their separate Value Added Tax Act and as per the present position, every States will have a separate VAT Act with different provision not corresponding with each other All dealers having CST are required to seek mandatory registration under the new VAT Act. The existing registered dealers are required to fill a FACT SHEET as notified by the department within a stipulated time and then they would not be required to seek fresh registration. There are two types of registration. The first is VAT dealers registration and the second is composition scheme dealer registration. The dealers opting under composition scheme will not be able to charge tax in the invoice and will have to pay lump sum fee as composition amount. For retail traders the expected limit of turnover for option under composition scheme is maximum Rs. 15 lacs. We facilitate our clients by providing them the facility of getting themselves registered under any of the two available types of registration.