|
Impex Solution
4,Mahesh Chambers, 1st Fl, 391 Narshi Natha St,Masjid(W),Mumbai.400
009
OFF : (022) 3426208/340 55 5 Fax : (022) 347 55 55 Email :
alaska@bom2.vsnl.net.in
Subject : Sales Tax Registration
Text : Goods which are to be shipped out of the country for
export are eligibile for exemption from
both sales Tax and Central Sales Tax.For this purpose, A new
Sales Tax No. Allotted by the
Sales Tax Department In an attempt to stand the dalay in acquiring
sales tax (ST)
registration numbers by manufacturers and dealers, the Maharashtra
government has
steamlined the application procedure.These procedures will
come into effect in Maharashtra
from January 1.The sales tax commissioner has notified the
procedures through a circular.
| WHAT ARE THE REQUIREMENTS FOR REGISTRATION
? |
| A |
Statement of sales/purchases. |
| B |
Statement of applicant (in duplicate) |
| C |
Partnership deed/memorandum and articles
of association with true copies. |
| D |
Confirmation of permanent residential address/Place
of Business |
| E |
Latest passport size photograph of applicant.
which is required to be signed before Officer, |
| F |
Rent receipt of place of business/residence
with true copies. |
| G |
Ration card/Election I-Card/Driving Lic
of proprietor/partners directors with photocopy of the
first and last page. |
| H |
Returns/challans position in case of shifting
of business and change in constitution. |
| I |
Court fee stamp of Rs. 25 for Central Sales
Tax registration certificate application. |
| J |
Bank account number. |
| K |
Any other details on demand to prove the
genuineness of applicant. |
The circular states that in the event of any document not
being available a the time of application, it would be verified
on the first date the applicant is called. It also states
that the application
could become liable for rejection if the above mentioned documents
are not produced.One month after filing for registration,
the following documents will have to be presented:
| WHAT ARE THE REQUIREMENTS FOR REGISTRATION
? |
| 1 |
Books of accounts |
| 2 |
Antecedents of proprietor/promoters |
| 3 |
Certificates issued under the Municipal/Factory
Act, Shop &Establishment Act, with their true copies |
| 4 |
Copy of income-tax order and PAN, if any |
| 5 |
Security of applicants for authorisation,
recognition and permit. |
KNOW YOUR RESPONSIBILITIES UNDER SALES TAX ACT.
If you are a dealer engaged in the activity of manufacturing,
importing, buying and selling of goods then you should register
yourself under the Bombay Sales Tax Act , 1959.
WHY REGISTRATION ?
Obtaining a certificate of Registration is a legal obligation.
It also enhances the prestige of trader in market.
WHO IS LIABLE FOR REGISTRATION ?
A dealer engaged in the activity of Manufacturing, Importing,
buying and /or selling of goods is liable for registration.
WHEN TO APPLY FOR REGISTRATION ?
Application be made within 30 days of exceeding the prescribed
turnover of the sales or purchases in any financial year.
WHAT ARE THE PRESCRIBED TURNOVER LIMITS ?
Prescribed Limits of the turnover are as under :
| Type of applicant |
Limits effective after 1-05-98 |
| Manufacturer |
| i) Total T.O. of Sales or Purchases shall exceed
Rs. 1,00,000/- and |
| ii) T.O. of taxabe Sales or Purchases shall exceed
Rs. 10000/- . and |
| iii) Value of any goods whether taxable or not
manufactured by him shall exceeRs.10000/- . |
|
| Importer |
| i) Total T.O. of Sales or Purchases shall exceed
Rs. 1,00,000/- and |
| ii) T.O. of taxabe Sales or Purchases shall exceed
Rs. 10000/- .and |
| iii) Value of any goods whether taxable or brought
by him into the state shall exceed Rs. . 10000/- |
|
| All other dealers |
| i) Total T.O. of Sales/ Purchases shall exceed
Rs. 250000/- |
| ii) T.O. of taxabe Sales/ Purchases shall exceed
Rs. 10000/- . |
|
| Voluntary Registration |
| ( i ) Turnover limits are not applicable. |
| (ii) Advance of Rs. 30000/-is required to be paid
which is adjustable towards dealers Liability of
tax,Interest, Penalties |
|
CONSEQUENCES OF NON-REGISTRATION
If you do not register yourself and discharge the obligations
under the law, you are liable for prosecution resulting in
a maximum imprisonment for twelve months or fine or both.
WHERE TO APPLY ?
Sales Tax Officer having jurisdiction over your area. In Mumbai,
Registration Branch is situated at Vikrikar Bhavan, 1st floor,
Mazgaon, Mumbai -10
HOW TO REGISTER ?
Contact the nearest Sales Tax Authority for guidance. Fill
in Form No. 1 which is the application for registration and
pay a sum of Rs. 100/- towards registration fee. Also affix
the application with two copies of recent photograph. The
authorities will verify the veracity of the entries made by
you in the application form and issue you the registration
certificate.
WHAT IS VOLUNTARY REGISTRATION ?
Certificate of registration can be obtained without exceeding
turnover limit under voluntary registration scheme. An amount
of Rs. 30000/- is required to be deposited for voluntary Registration,
which is adjustable towards dealers subsequent liability of
tax, penalty and interest.
WHAT FACILITY IS AVAILBLE FOR THE REGISTRATION OF THE DEALERS
WHO DO NOT HAVE PLACE OF BUSINESS IN MAHARASHTRA .
Dealers who have no place of business in Maharashtra State
and want registration, can get the same from the officer in
charge of Non Resident Circle of the division. In Mumbai NRC
Officer is at 107, Vikrikar Bhavan, Mazgaon, Mumbai-10.
IS NEW REGISTRATION REQUIRED IF PLACE OF BUSINESS IS SHIFTED
?
Yes. New registration certificate is required on shifting
of place of business even from one pin code to other pin code.
IS NEW REGISTRATION REQUIRED ON CHANGE IN CONSTITUTION ?
Yes. New registration certificate is required if there is
a change in constitution, such as Partnership to Proprietorship
or Proprietorship to Pvt. Ltd.
WHAT ARE THE ADVANTAGES OF REGISTRATION ?
|
|
You will be entitled to collect Sales Tax
payable by you. An unregistered dealer cannot collect
tax , even though tax is payable by him. |
|
|
Set off of the taxes paid on purchases is
available only to a Registered dealer. |
|
|
Incentive in the form of Sales Tax exemption
/ deferral etc. are available only to dealers registered. |
|
|
A preferential treatment is always given
to a Registered dealer in case of selection for Govt.
/ Semi- Govt. contracts. |
|
|
If registered under Central Sales Tax Act
also, you are entitled to purchase from outside the State
of Maharashtra at a concessional rate of Tax @ 4 per cent
on |
|
|
C form declaration. |
|
|
A registration enhances the prestige of
a Trader in market. |
WHAT ARE THE DISADVANTAGES OF NON-REGISTRATION ?
|
|
Taxes cannot be collected even though payable. |
|
|
No set-off admissible on taxes paid forpurchases. |
|
|
No benefits under Incentive Schems such
as exemption or deferal. |
|
|
Possibilities of non consideration of tenders
for Government, semi- Government contracts. |
|
|
Purchases at concessional rates not available
against declarations such as " C " Form. |
|
|
In addition to this, non-registration invites
action for levy of penalty and prosecution which may result
into fine and conviction upto 1 year simple imprisonment. |
|
