Registration process for Excise vat and service tax


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Registration process for Excise vat and service tax

  1. 1. Registration ProcessExcise, Service Tax, VAT -By Ch.Kapil
  2. 2. Registration Coverage 1.    2. Major Considerations under this Registration are: Type of Registration When to take .? How to Take ..? Accounting and Auditor’s Role of Registration?
  3. 3. Type of Registrations Under VAT Under Excise Under Service Tax Dealer Manufacturer Single Hotelier / Restaurateurs / Caterers / Sweet Meat Stall l/ Ice-cream Parlours / Bakeries Dealer Centralised Mechanical Crushing Unit Non Assessee Works Contractor Declarant Basing on the type of the Business the client deals with, The selection of type of Registration applies
  4. 4. Where do Law specify the Registration as Mandatory..?  Chapter III of Karnataka VAT act,2003 declares the details of registration for VAT  Section 6 OF Central Excise Act, 1944 for Excise  Section 69 of Chapter V of Finance Act,1994 for service tax
  5. 5. When do I need to Register?  For vat if the taxable turnover is more than Rs. 5,00,000 /-per annum or Rs.40,000/- per month  For excise if entity deals in manufacturing or production and trading of goods specified in First and Second schedule of Central Excise Tariff Act,1985  For Service Tax the person liable to pay tax under chapter V of Finance Act,1994 has to get registered
  6. 6. In Detail for VAT Registration?  Every dealer in dealt in purchase or import of Taxable goods is liable to register under VAT after such purchase and shall intimate the same in monthly return  Every Dealer in dealt of sale or of such nature to person outside the state has to register after such first sale  A works contractor also need to be registered under vat.
  7. 7. How to register under VAT?  Apply online by visiting the and fill in the details in Form 1  Select the LVO code and fill in the details with soft copy of the documents  After application is filled the vat commissioner of induce the Vat inspector for Physical verification of business and documents  Vat Tin No and Professional Tax Number will be allotted on Receipt of nominal fee of Rs. 3,500/-
  8. 8. For Central Excise  Login or Logon in under Central Excise  Select the Form applicable i.e. Form A1 or A2 or A3 or Non Assessee available under registration column  Major Requirements under this form are: 1. List of Major goods that are traded, manufactured 2. List of Major goods that are Inputs for Business Other all data like company details and management details are also important but Goods mentioned in this list plays a major role in our input credit on Inputs and capital goods
  9. 9. For Service Tax  Login or Logon in under service tax Column  Select the Form ST 1 available under registration column and fill the details as required  Major Requirements under this form are: 1. List of Major services that provided 2. List of Major services taken as Input Other all data like company details, Location details management details are also important but services mentioned in this list plays a major role for availing Input Credit
  10. 10. Documents required for Registration Common for VAT, Service Tax and Central Excise  Incorporation Certificate of Company (in case of Companies)  Memorandum of Association & Article of Association (in case of Companies)  Rental Agreement/ Lease Agreement of Company / Proprietorship  Company PAN Card / Individual PAN card in case of Proprietorship  Address Proof of Director – Lease / Rental Agreement  ID Proof of Director – Pan Card / Election Card/ Passport/ Driving License  Registration copies with other Departments like. VAT, PT, Labour dept.  True copy of Board resolution empowering company representatives as Authorized signatories.  Partnership Deed in case of Partnership firm
  11. 11. Details Required in Specific for Excise and Service Tax  Notification References for List of goods and services traded  Notification References for List of goods and services taken as Input  Tariff headings of the goods specified in Customs tariff Act
  12. 12. Type of Registration in case of Branches  As VAT is state government tax, registration of branches to be taken in respective states only  In case of service tax, client can apply for centralised registration ( if Books of accounts are maintained at Head office only)  In case of Excise, the client can apply for registration of Input Service Distributor useful for passing on the cenvat credit as it is. (If books of accounts are maintained separately)
  13. 13. Check for the Applicability…? Type of the Dealer VAT Central Excise Service Tax Income Tax (PAN) Manufacturer Yes Yes Yes Yes Importer Yes Yes Yes Yes First Stage Dealer Yes Yes Yes Yes Second stage dealer Yes Yes Yes Yes Job worker Yes No Yes Yes Works contractor Yes No Yes Yes Taxable service No provider No Yes Yes Non taxable Service No Yes Yes No
  14. 14. Check for the type of Registration ..? Type of Business Registration Required VAT Excise Service Tax Manufacture of Goods Dealer Manufacturer Trading of Goods Dealer Dealer Job Worker Dealer NA Applicable Works contractor Works Contractor NA Applicable Packing of Goods Dealer Manufacturer Applicable Bank Dealer Manufacturer Applicable Financing Society NA NA Applicable
  15. 15. Accounting For Registration Expenses  Accounting for Expenses met for establishing an entity like company is accounted as Differed Revenue Expenditure  Where in case of Statutory Registration under IDT is not so …?  This is basing on the estimate of business turnover after Commencement of Business  Fees Met for this registration to be expensed under “ Rates and Taxes”
  16. 16. Auditor’s Role  Auditor’s details are updated in Form 1 of vat Registration  He has to check the registration certificate for clear and correct understanding of the clients Business  He has to verify the input credit of the goods which are stated in Form A1 under Excise  He has to verify the accounting of Registration, Renewal and amendment of registration expenses with proper supporting
  17. 17. Can Contact Me: Mob: 8892879593 Mail me: m