Value Added Tax or VAT is a tax applicable on goods and services produced or distributed at every stage in India. It has to be paid by the producers of the particular goods and services. Value Added Tax is a multi-level taxation system. It is firstly identified and then the tax is applied as per the interstate sales and purchases. With the government introducing VAT, businessmen and traders find it easier to manage taxes, as the VAT filing procedure is transparent and accountable. You can file for VAT return offline or online.
NOTE: The Goods & Services Tax (GST) introduced on 1 July 2017 replaced some 20 consumption taxes charged by the Centre and States. This includes Service Tax, CENVAT, VAT; Excise Duty, etc. VAT is however still applicable on several goods and services.
In this post we will discuss about who should file for VAT returns, how to file the same online, prerequisites for e-filing the return, benefits of online filing, and frequently asked questions.
All the producers of goods and services in India must file for VAT returns to the respective state government. This is regardless of a partnership firm, manufacturing or trading business, private limited company, or sole proprietorship whose annual turnover is above Rs. 5 lakhs. These entities must register themselves to the VAT Department. The dealers not mandated to register can also take benefit of tax invoice issuance by the Department.
Here is how you can file your Value Added Tax return online:
Here are the preconditions for e-filing VAT returns:
Filing Value Added Tax returns online helps to keep in tune with the taxation procedure, especially doing away with the manual filing process. Here are the benefits of the same:
Here are the FAQs on filing VAT returns online:
The Directorate of Commercial Taxes provide all the goods and services producers registered under the VAT Act 2003 with a User ID and Password. These login credentials have to be used to access the VAT e-filing system. If you lose the login details, then the Directorate help desk can help retrieve the same.
To file for VAT return online, you have to firstly register with TIN on the Directorate of Commercial Taxes website. Also use the provided user ID and password to login. Now, download the VAT return file in PDF format and fill the required information. You can edit the details in the form online. After duly filling the form, make the VAT payment and keep a note of the challan number. Now upload the return file on the website.
Payment can be made through net banking, direct debit instruction, or e-payment facility by your bank.
Collection of VAT is based on the destination. This tax is applied on the place of final consumption of goods and services. The same is categorized in the below-mentioned manner:
Value Added Tax Registration or TIN Registration is required for businesses producing or trading goods in India. This tax replaced the Sales Tax in the country. The cost of it comes down to the customer. District rules are applicable on the kind of goods manufactured and sold. This is subjected to the respective State Government laws. Thus, the due rate of return and payment varies from a state to state. The filing of VAT return is due usually every month (file return by 20th of succeeding month) , quarter, or year.
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