Regarding VAT and CST registration

[anwarazad]

Hello everyone,

I have a few queries regarding CST and VAT registration. I would really appreciate it, if someone who is experienced would answer these queries.

1. Is it required to have CST/VAT registration if I am selling used items, such as old tape recorders, cd players etc?

2. I believe you need to have a CST/VAT registration for retail selling on ebay. Is this true?

3. I have checked around with some friends who are business men, and had informed me that the cost of registration for CST + VAT is Rs.30,000/- for partnership firm, which includes Rs.25,000/- as deposit, and Rs.20,000/- for sole proprietors, which include Rs.15,000/- as deposit. (The deposits are refundable upon de-registration). Is this accurate?

4. Another information I received regarding requirements to apply for VAT/CST is that, you need to have a business 'premise'. I do not know how exactly they define 'premise'. Can someone explain? Is the requirement of a premise applicable for e-commerce oriented businesses too?

Would appreciate an input from the pinks too, if you aren't too busy.

Thank you so much for your time and your answers.

[anwarazad]

Since I last posted on this thread, there has been many who have contributed their valuable insights and knowledge. Thank You all...


@avinash_gupta_bid
You are right, as I have found out for myself. It is not possible (Legally) to sent an item of sale to a different state without a VAT\CST account.

What is possible though is limiting your sales to your local state, for the time being, until you receive the VAT/CST number.

Another requirement in general for trading, even for applying for VAT/CST is, a 'business license' from a local body such as Panchayat or municipality. This can be applied easily, and does not cost much.

Again, please do understand that the information I furnish is what I have found to be true locally here in Kerala. Other states as is evident from other posts in this thread may or may not be different.

[crave.cradle]

Hello, sellers out there.

VAT applies to all types of businesses including
(1) Importers
(2) Manufacturers
(3) Distributors
(4) Wholesalers
(5) Retailers (Most eBay sellers fall into this category)
(6) Works Contractors
(7) Lessors

This is very important for MAHARASHTRA sellers and much accurate reply for your queries. eBay Sellers are insisted upon registering for VAT rather than CST. Government states that every dealer having a CST number MUST also have a VAT number. Otherwise, VAT is more than enough as CST would be eliminated from the system gradually in future.

"If sellers out here on eBay pay VAT to the supplier and also charge VAT to customers with proper legal invoices mentioning VAT no. and RC no., they will have to record the invoices electronically or physically, and can file a refund for the VAT amount that they have paid for, accompanied with Supplier Invoices (Very nice to hear about it.)"

An new eBay seller need not apply for VAT immediately. VAT is compulsory when the Gross Sales Turnover (Annual sales excluding CST/VAT amount if charged to customers) exceeds 5 Lacs.

So basically we have two categories below 5Lacs and above 5 Lacs. If a seller wishes to apply for VAT, even if his turnover is less than 5Lacs, IT IS CALLED Voluntary Registration(very expensive) otherwise Compulsory Registration.

I am in process of collecting Registration Fees information, so hold on for couple of days.

FAQs that would solve 90% queries out here (The list is very large):

http://184.73.208.76/mahavat/faq.html

[amitava123gems]

Hi yk.motoz,
What if
1)You do not manufacture
2)Dont buy from supplier,that is,you are not paying vat
3)sell used stamps and envelopes which dont have a commercial value???
My consultant says vat is not required.
Ebay is a major forum of collectors who buy and sell funny stuffs like empty match boxes. They can no way be roped in for vat.
In fact I sell match box labels.
Thanx,
Truly,
Amitava

[ysahigara2010]

well if their is no need to apply immediately for VAT/CST number than how to sell our products on ebay,for if once the product is sold you are required to give invoice to the buyer,even for shipping purpose you require invoice copy,so how can we provide invoice to the buyer or the shipping company for the product sold if we dont have VAT/CST number as we are new and dont have a turnover of 5lacs plz help us out with the invoicing part

[cute.4788]

In all this discussion no body answered the question
What should we provide in form of Invoice to the buyers if we don't have any VAT/CST no.?

[powercud]

hello sir nothing that, the gov. fee is only Rs.750.00,
but the process is very slow, better you go for auditor, he finished with one or two week, @ Rs. 3500 - 4500/- only
first made DD sole Pro /Parter DD ( Rs.50. Bond Sheet 3 no.)
and the Reg Firm Reg Rs. 750.00
And the applied For Firm PAN Rs. 350
totally : Rs. 4600-5600/-

any thigh el you sell to anybody, to pay tax for gov,so that you must have VAT/CST

its your Safety, Because of ebay traction on your bank account so, ready for all this you do buz its safe for you

[uma.inc]

GUYS I DINT HAVE MUCH TIME TO READ EVERYTHING.
but i can say that Ebay cant gv any legal consultancy because in my view there income is also unaccountable since our income is not tracable by govt as most of us not registred so it is quite obvious that the commison that BEYA IS CHARGING is also not tracable..coz they cant show commsion from untracable transaction

and guys dont worry since INDIA IS STILL NOT SO DEVELO[ED ON E-COM PLATFORM SO I-T GUYS CANT TRACE ANYONE SINCE THEY DONT HAVE TECHNOLOGIES YET TO TRACE E-COMMERCE TRANSACTION

SORRY TO SAY I KNOW MIGHT BE LIL UNETHICAL:
OPEN MULTIPLE BANK A/Cs (DONOT QUOTE pan,JUST SIGN A DECLARATION THAT YOU DONT HAVE PAN CARD)
update your paisa pay with multiple bank a/c's lol

or simply use ur family members a/c

YOU ARE NOW SAFE FOR NEXT 5YEARS ATLEAST.

[rupajust4u]

I am running a home based business .. Do I have a VAT/CST registration or not. Please guide me ..

[ratnachhaya]

I am not sure what it legally interpretes but

Many sellers like me who are collecters and buy and sell used persoanl items (coins/fdc's/photo or some collectibles) which is neither manufactured/distributed/sold as a business commodity are not taxed (VAT). Off course, the cap of 5L is far above our sells so that is another issue.

Is is same as you sell your old sofa or TV to someone ....

Further resell means you already paid taxes once. This may not apply to many people but I guess some like me are there .

[manavamity]

Any idea on what exactly is the status of VAT and CST registration as of now?...if you are selling interstate and your turnover is below 5 lacs?

I bought few goods from local level without bill...is it possible to sell them?..any seller faced any problem?

Please guide