VAT AUDITOR IN CHENNAI, VAT AUDIT CONSULTANT IN CHENNAI, VAT CONSULTANT IN CHENNAI
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Business licenses are permits issued by government agencies that allow individuals or companies to conduct
business within the government's geographical jurisdiction. It is the authorization to start a business issued
by the local government. The business activity determines most license requirements. Other determining factors
may include the number of employees, location of business and the form of business ownership, such as sole proprietor
Business licenses are not limited to new business owners. Companies already established need to file renewal
applications after a certain period of time. Many businesses often require more than one license and permit to
legally operate, a process that can be expensive, time-consuming, and frustrating to deal with. Although it may
seem like a tedious process, it is important a business owner abide by the law and obtain the necessary certification
to operate their business. Going forth with operations without the security of legal documentation is considered
illegal, and it puts the business owner at risk for permanent closure, heavy penalties and interest, etc., if they
are found in non-compliance.
For detailed description of each license click on the name of the License below.
New Registration - VAT /CST /TIN
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Income tax(IT) Return filing, VAT Registration Chennai, VAT Return Filing, Companies Annual Report Forms e filing, Service Tax return filing, Company formation in Chennai, Company Incorporation in Chennai India, VAT Registration, Service Tax, Project Report
What is VAT?
VAT is a multi-point tax on value addition which is collected at different stages of sale with a provision for
set-off for tax paid at the previous stage/tax paid on inputs. This is applicable to intra-state sales.
What is CST?
CST is same as VAT and is applicable for Inter-state sales only.
Who is a dealer?
'Dealer' means any person who carries on business and includes-
• any person who, for the purposes of or in connection with or incidental to or in the course of his business buys,
sells, goods directly or otherwise, whether for cash or for deferred payment or for commission, remuneration or other
• any department of the Central Government or a State Government, a local authority, Panchayat, Municipality,
Development Authority, Cantonment Board and each autonomous or statutory body or an industrial, commercial, banking,
insurance or trading undertaking whether or not of the Central Government or any of the State Governments or of a local
authority, if it buys, sells, supplies or distributes goods, in the course of specified activities which may be
prescribed from time to time;
• a factor, commission agent, broker, del credere agent, or any other mercantile agent by whatever name called,
who carries on the business of buying, selling , supplying or distributing goods on behalf of any principal, whether
disclosed or not;
• an agent of a non-resident (where such non-resident is a dealer under any other sub-clause of this definition);
• a local branch of a firm or company or association of persons, outside The State where such firm, company, association
of persons is a dealer under any other sub-clause of this definition;
• a club, association, society, trust, or cooperative society, whether incorporated or unincorporated, which buys
goods from or sells goods to its members for price, fee or subscription, whether or not in the course of business;
• an auctioneer, who sells or auctions goods belonging to any principal, whether disclosed or not and whether the
offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;
• a casual trader; or
• any person who, for the purposes of or in connection with or incidental to or in the course of his business
disposes of any goods as unclaimed or confiscated, or unserviceable or scrap, surplus, old, obsolete or as discarded
material or waste products by way of sale;
VAT in a nutshell
• VAT is a State based tax. If you are dealing in taxable goods within a state, then VAT registration should be obtained.
• Exemption limit for VAT registration vary from state to state and also on the nature of entity and activities. Please
refer to state VAT laws for more details on applicability of VAT on your trade.
• CST is applicable for inter-state trades. If you are dealing in taxable goods across the states then CST is applicable
and should be charged.
• VAT can be set off. This means if you have paid VAT on your purchases the same can be set off against VAT on your
sales and the net amount should be deposited to State Government.
• CST can be set off. This means if you have paid CST on your purchases the same can be set off against CST on your
sales and the net amount should be deposited to Central Government.
• VAT and CST cannot be set off against each other.
• VAT returns are required to be filed every Month or every Quarter depending on your turnover. Please refer to your
State VAT rules for exact slab for monthly returns or quarterly returns. NIL returns are required to be filed in time
if there has not been any business during the period. Late returns are liable for penalty.
• New Registration - Service Tax
What is Service Tax?
Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services
(as on date most of the services has been brought under service tax purview) specified by the Central Government
under the Finance Act, 1994.
It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the
tax and recovers the amount from the recipient of taxable service.
Who is liable to pay service tax?
Normally, the ‘person’ who provides the taxable service on receipt of service charges is responsible for paying the
Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the
Services is responsible for the payment of Service tax :
• Where taxable services are provided by foreign service providers with no establishment in India , the recipient
of such services in India is liable to pay Service Tax,;
• For the services in relation to Insurance Auxiliary Service by an Insurance Agent , the Service Tax is to be
paid by the Insurance Company
• For the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who
pays or is liable to pay freight is liable to pay Service Tax , if the consignor or consignee falls under any of
the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society
(f) a registered dealer of excisable goods (g) a body corporate or a partnership firm
• For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service
Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.
Service Tax in nutshell
• You get an exemption from service tax payments if your gross revenue has not crossed Rs.10 Lacs in a year.
This is a kind of shelter for small businesses and once you have crossed Rs. 9 Lacs of turnover in a particular
financial year, you should apply for the service tax registration.
• Once you receive the service tax registration, you may start charging to your customers additionally for service tax.
Please note that service tax is your responsibility to pay, irrespective of whether you have charged your customer service
tax additionally or not.
• Service tax exemption of Rs. 10 Lacs is based on your turnover in the previous financial year. This means if your
turnover has been 10 Lacs or more in the previous financial year, you need to pay service tax on each and every rupee
in the current financial year (irrespective of your current turnover).
• E.g. You started your business in FY 2005-06 and your turnover in FY 2005-06 was 5 lacs, FY2006-07 was 12 lacs,
FY 2007-08 was 9 lacs, FY 2008-09 was 15 lacs and FY2009-10 was 8 lacs. This is how you shall traverse in service tax.
You should register for service tax in FY FY2006-07 when you cross 9 lacs of turnover and start collecting/ paying service
tax on your revenues more than 10 lacs (in the above example on 2 lacs of turnover). In FY 2007-08 you should pay service
tax on complete 9 lacs. In FY 2008-09 you may choose not to pay service tax till you cross 10 lacs of turnover (please
note that you should also not collect the service tax in this case till 10 lacs of turnover). In FY2009-10 you again have
to pay service tax on each and every rupee (here 8 lacs).
• Currently export of services is exempted from service tax. This exemption is applicable for calculating 10 Lac limits.
• You may choose to obtain a service tax registration before crossing 10Lac specified limit. The above example helps you
to understand how service tax will be applicable.
• You get a set off of service tax. This means if you have paid service tax while availing services of another company
or person, then the same can be set off from your service tax payments and the balance should be deposited with the Government.
Set off is applicable for related activities only and provided you have not claimed 10 lac exemption during the period.
• Service tax returns are required to be filed every half year. If you have not done any business during a half year period
then NIL returns should be filed in time else you may have to incur penalty for late returns
New Registration- Central Excise
Procedure of obtaining registration.
The application for registration is to be filed with the Superintendent of Central Excise having jurisdiction over
the premises in respect whereof the registration is to be obtained. The following documents are to be submitted for
obtaining the registration
• Possession letter/allotment letter/rent deed of the premises to be registered;
• Article of Association of the company or Partnership deed of the firm, as the case may be;
• List of items with their Tariff sub-headings proposed to be manufactured; list of items with their Tariff sub-headings,
if any, obtained, under Chapter X procedure or dealt within;
• Registration certificate issued under Shop and Establishment Act and PAN Number;
• Duly filled in application in the form R-I in triplicate;
• Grounds plan of the premises in duplicate including details of plant & machinery etc.;
• Details of the proprietors/all partners/Directors of the company including
Income tax(IT) Return filing, VAT Registration Chennai, VAT Return Filing
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