For enterprises making a turnover of over Rs 5 lakh by selling goods and services, registration for VAT is mandatory in the respective state of operation. To start pay VAT, one needs to register for it first after which they are given with a unique eleven digit number used to communicate for everything regarding VAT and its filing.
Any firm/ business making a turnover of more than Rs 5 lakh needs to register for VAT
Required documents for registration for VAT are stated below:
However the time consumed for registration may vary from state to state but generally it takes around 15 to 20 days for successful generation of registration number.
There are a few categories of persons who are exempt from paying this Advance Tax eg., people above age sixty years who do not own any business and people whose annual business turnover is more than 2 crores p.a. but they opt for 'presumptive schemes'. In the financial year 2016-2017 this exemption has been extended to doctors, lawyers and architects with annual turnover less than Rs 50 lakhs.
As per classification on the basis of timing of collection, VAT can be classified in following ways:
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