CA Kishore Soni
As per provision of Sec. 21 of the Gujarat Value Added Tax Act, 2003 a dealer is required to obtain compulsory registration when his total turnover in a particular financial year exceeds Rs. 5 lacs (including OGS, tax free sale and export) and turnover of purchase or sales of taxable goods exceeds Rs. 10,000/-.
The dealer shall have to make an application to the jurisdictional officer within thirty days of the turnover crossing the threshold limit.
A provision is also made in The Value Added Tax Act, 2003 to obtain Voluntary Registration. (Sec. 22). In order to obtain voluntary registration a dealer is required to deposit Rs.25,000/- in Government Treasury. The amount so deposited is eligible to be adjusted against the future liability of Vat Tax, Vat Interest and Vat Penalty. However, it cannot be set off against any liability to pay CST.
This is a major difference between the Compulsory Registration and a Voluntary Registration.
(A) Following forms need to be filled.
Details required for filling the form.
Documents Required :
1. PAN Card of the company. If PAN card is not yet received, then copy of Form 49A along with acknowledgment.
2. Memorandum and Articles of Association, Resolution for obtaining Registration Number under the Act and appointment of some Manager in case it is a Branch of the company and all copies of Form 32 since incorporation.
3. Proof of Place of Business including godown, if any
If Rented – Rent Agreement and Municipal Tax Bill
4. Two copies of recent passport size Photographs of all the Directors.
5. Zerox copy of PAN Card of all the Directors of the Company.
6. As Identity Proof – Self certified copy of Passport or Election Card or Driving License or Aadhar (UID) Card of any one Director.
7. Residential address proof of any one Director
Self certified copy of Passport or Election Card or Driving License or Aadhar (UID) Card or Electric bill/ Landline Telephone bill in his own name or in name of Spouse or Mother or Father.
8. Copy of TIN/ CST Certificates of Head Office, Branches outside the State of Gujarat.
9. Authority letter in favor of Authorized Representative in Form No. 603.
10. Zerox of all Sales and Purchases bill till the date of application.
11. List/ Register of Purchases/Sales made – Date, Name and Amount
A dealer applying for registration voluntarily or compulsory has to deposit Rs. 10,000/- as security. This amount of security will be returned to dealer within 2 years from the date on which the number is granted.
The application is to be signed by the Director or the Principal Officer or duly Authorized Person of the Company.
(B) Zerox copies of all the documents mentioned above are required to be certified as true copies by a Gazetted officer or a Sales Tax Practitioner or an Advocate.
(C) The application for registration is to be made to the SRU Commercial Tax Officer having jurisdiction over the place of business of the dealer.
(D) The Commercial Tax Officer shall give the date of hearing to the dealer on receipt of VAT Registration Application. On the date of hearing, the Dealer or the Authorized Representative shall have to remain present with application form and all the original documents.
Original Documents required for verification:
Documents are initially verified by the CTO and data entry is done. The assessee has to be physically present with original documents for verification in front of the Jurisdictional Assistant Commissioner of SRU. After approval from SRU the application is further sent for Spot Verification. Meanwhile a provisional number is granted within 2 days of the application and such provisional certificate can be printed online by making registration on the government website www.commercialtax.gujarat.gov.in.
(E) After issuing the provisional registration number to such dealer, the procedure of Spot verification shall be carried out. If the registering authority is not satisfied, at the time of spot verification, with any detail furnished by the dealer, the registration number issued earlier shall be cancelled with effect from its date of issue, otherwise a certificate of registration shall be issued within thirty days from the date of application.