COMMERCIAL TAXES DEPARTMENT

Government of Telangana

SRI ANUMULA REVANTH REDDY
Hon'ble Chief Minister

VAT/CST/TOT Registration

Introduction
Registration is the first step towards enforcement of the sales tax provisions in the State. As per the provisions of TVAT Act, every dealer is required to apply for registration under the Act if he falls under any of the clauses mentioned in the Act is liable to get registered under the VAT Laws. The biggest benefit of VAT registration is that only VAT registered dealer is eligible to get input tax credit. Further, dealer registered for VAT only can issue a tax invoice which entitles the entitles the purchaser to receive the input tax credit. No dealer, who is liable to pay tax under Act, shall carry on business as a dealer unless he has been registered and possesses a certificate of registrations
What are the Types of Registration under the T VAT Act?
According to Chapter IV of TVAT Act (section 17 to Section 19),the following types of registration are envisaged:
1.VAT Registration
(a) New VAT Registration
(b) Migration (from TOT to VAT) Type Registration
(c) Compulsory VAT Registration
(d) Start up –Registration
(e) Voluntary VAT Registration
2. TOT Registration
Section 17 (1) provides that – every dealer other than a casual dealer shall be liable to be registered in accordance with the provisions of the Act.
VAT Registration
Who has to be registered for VAT?
Any dealer conducting a business or intending to conduct a business may apply to be registered for VAT. However all persons conducting a business must register for VAT from the date they commence business if they believe their taxable turnover will exceed a threshold of Rs.50 lakhs in 12 consecutive calendar months. All dealers must register for VAT if their taxable turnover exceeds Rs.10 lakhs for the preceding three consecutive calendar months. Regardless of their taxable turnover the following dealers must register for VAT at the commencement of their business: Every dealer importing goods in the course of business from outside the territory of India; Every person residing outside the State but carrying on business within the State; Every dealer registered or liable to be registered under the Central Sales Tax Act 1956, or any dealer making purchases or sales in the course of inter-state trade or commerce or dispatches any goods to a place outside the State otherwise than by way of sale; Every dealer liable to pay tax at Special rates specified in Schedule VI of the AP VAT Act 2005; Every commission agent, broker, del credere agent, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of his non-resident principal; Every person availing an industrial incentive in the form of a tax holiday or tax deferment; Every dealer executing any works contract exceeding Rs 5 lakhs for the State Govt. or a local authority and any dealer executing works contracts and opting to pay tax by way of composition.
How do i calculate my taxable turnover?
Your taxable turnover is calculated on an ongoing basis. You should calculate at the end of each month the total value of taxable goods sold for the preceding three months. Where the total exceeds Rs.10 lakhs you are required to apply for VAT registration. You should also see whether your taxable turnover for the preceding twelve months exceeds Rs.50 lakhs. If it exceeds Rs.50 lakhs you are required to apply for VAT registration

When do i become liable to register for VAT?
If you are in business in the categories listed in the Answer to the Question 1 above, you must register prior to the commencement of your business. For other businesses, if you are commencing a business and expect your taxable turnover to exceed, in 12 consecutive calendar months Rs.40 lakhs you must register for VAT at the commencement of the business. If you intend to make inter-state purchases or sales or intend to dispatch goods outside the State other than by way of sale, then you must apply for VAT registration before applying for CST registration. Other dealers have to consider their taxable turnover for the preceding 3 months and preceding 12 months. If during the past 3 months their taxable turnover exceeded Rs.10 lakhs, or exceeded Rs. 40 lakhs in the past 12 months, they must apply for VAT registration by the 15th of the following month. Illustration: If your taxable sales exceeded Rs.10 lakhs during the preceding 3 months ending August 2005 say on 25.08.2005, your liability to be registered as VAT dealer arises at the end of August 2005. The time to apply for VAT registration in this case is on or before 15.09.2005. You will be registered with effect from 01.10.2005.This is the date from which you are liable to charge and pay VAT. For the earlier period i.e., before 1.10.2005, you are liable for TOT :

TOT REGISTRATION
Who has to be registered for TOT?
If your taxable turnover exceeds Rs.7.5 Lakhs but not Rs.50 Lakhs for the 12 months you are liable for TOT registration
What are the obligations of a TOT dealer ?
You must fulfill the following obligations:
a You must file a quarterly return and pay the tax due for each quarter ending June, September, December and March by the end of the following month.
b Failure to file the quarterly return and make the payments due can result in the imposition of penalties and interest charges.
c A person registered for turnover tax cannot claim a credit for any VAT that he is charged in the course of his business or any turnover tax charged by his suppliers.
d A person registered for turnover tax cannot issue a Tax invoice.
CST REGISTRATION
Who has to register under the CST Act?
Please note that for getting registered under CST ACT, prior registration under VAT is mandatory. The dealers who are registered under VAT can apply for CST registration in form CST A (“Application for CST registration”), which is obtainable from your Tax Office or available online.
REGISTRATION PROCEDURE EXPLAINED
How do i register for VAT/TOT/CST registration?
A dealer seeking Registration under the TVAT or CST Act, now has an option to utilize any of the following facilities to apply for registration:
1) Through TS - IPass: A dealer can file VAT/CST registration application through the TS -I Pass portal & also upload the Documents online
2) Through Online mode: A dealer can file VAT/CST registration application ONLINE on the CTD Portal and also scan & upload the Supporting documents through the CTD Portal
3) Through Courier/ Registered Post: A dealer can file an application Online/Offline and send the supporting documents to the Office of the Concerned registering Authority through Courier or Registered Post
4) In person before the Central registration Unit (CRU) or the Concerned Registration Authority: A dealer can submit his application and all supporting documents before the Registration Authority in person.
Important: If a dealer is a “proprietary concern” applying for Registration in “Sensitive Commodities”, he must necessarily submit the application before the Registration Authority in person.
Is there a checklist of the Supporting Documents that I need to submit along with my application?
The checklist of the documents required for VAT/TOT/CST Registration is given below
Who is the registering authority to issue a VAT registration?
The registering authority for VAT /TOT/ CST registration is the ACTO of a circle.
Will I be given a Unique number on approval of my registration?
Yes. If your Registration application is approved , a Tax Payer Identification Number will be issued. The TIN is a 11 digit number with the first two digits as “36” indicating the State of Telangana. You will have to sue this TIN for all Tax Purposes. In case of a TOT Dealer, a GRN Number is issued.
What are the timelines for the RC to be issued?
The Registration Certificate should be issued within 1 working day from the date of receipt of the application together with all supporting documents. This is in accordance with Rule ________of the TVAT Act & Rules.
How will I get my Registration Certificate?
1. Once you registration application is approved, the RC certificate will be scanned & Uploaded to the dealer login.
2. The dealer can initiate all his business activities on receipt of the scanned certificate.
3. The Original certificate shall be couriered/sent by RPAD to the premises of the dealer by the Registering Authority.
What happens if my Registration Application is found to be incomplete?
4. In case of any gap found in the registration application, the Registering authority may return the application to the dealer by recording the reasons in writing and provide the dealer 7 days of time to respond to the query. The dealer may resubmit the application after rectifying the defects noted.
5. In case of rejection of a registration application, the Registering Authority should issue a rejection order in VAT 103, by recoding the reasons for such rejection in writing.
Is there any Fee for Registration?
It may be noted that there is no registration fee for VAT /TOT/CST registration
Is there any annual renewal process for registration?
No. You need not approach any office for annual renewal of the VAT /TOT/CST registration. Once issued, the certificate is considered to be valid until cancelled.
Documents useful for the Registration procedure
CCT’s Circular Online Help File