abhishreshthaa
Abhijeet S
Compulsory Issue of Tax Invoice, Cash Memo or Bill
This entire design of VAT with input tax credit is crucially based on documentation of tax invoice, cash memo or bill. Every registered dealer, having turnover of sales above an amount specified, shall issue to the purchaser serially numbered tax invoice with the prescribed particulars.
This tax invoice will be signed and dated by the dealer or his regular employee, showing the required particulars. The dealer shall keep a counterfoil or duplicate of such tax invoice duly signed and dated. Failure to comply with the above will attract penalty.
Registration, Small Dealers and Composition Scheme
Registration of dealers with gross annual turnover above Rs. 5 lakhs 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.
Small dealers with gross annual turnover not exceeding Rs. 5 lakhs will not be liable to pay VAT. States will have flexibility to fix threshold limit within Rs. 5 lakhs. Small dealers with annual gross turnover not exceeding Rs. 50 lakhs who are otherwise liable to pay VAT, shall however have the option for a composition scheme with payment of tax at a small percentage of gross turnover.
The dealers opting for this composition scheme will not be entitled to input tax credit.
This entire design of VAT with input tax credit is crucially based on documentation of tax invoice, cash memo or bill. Every registered dealer, having turnover of sales above an amount specified, shall issue to the purchaser serially numbered tax invoice with the prescribed particulars.
This tax invoice will be signed and dated by the dealer or his regular employee, showing the required particulars. The dealer shall keep a counterfoil or duplicate of such tax invoice duly signed and dated. Failure to comply with the above will attract penalty.
Registration, Small Dealers and Composition Scheme
Registration of dealers with gross annual turnover above Rs. 5 lakhs 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.
Small dealers with gross annual turnover not exceeding Rs. 5 lakhs will not be liable to pay VAT. States will have flexibility to fix threshold limit within Rs. 5 lakhs. Small dealers with annual gross turnover not exceeding Rs. 50 lakhs who are otherwise liable to pay VAT, shall however have the option for a composition scheme with payment of tax at a small percentage of gross turnover.
The dealers opting for this composition scheme will not be entitled to input tax credit.