Since A is carrying out business activity of gold ornament designing in Bangalore by purchasing raw materials and stationery, he would require registration under Karnataka VAT. Even though his permanent place of business is in Delhi, since he is carrying out business activity in Karnataka, he needs Karnataka VAT registration.

1. -By Ch.Kapil,
Article Assistant at Gella & Co
Registration Process- IDT
Central Excise, Service Tax, K VAT
9/2/20141

2. Coverage
1. Major considerations under this Registration
are:
 Type of Registration
 When to take .?
 How to Take ..?
2. Accounting for Expense and Auditor’s Role of
Registration?
9/2/20142

3. Few Terms defined in
law……….
9/2/20143
1. Business
2. Dealer
3. Goods
4. Input
5. Place of
Business
6. Works Contract
7. Taxable
Turnover
8. Excisable
Goods
9. Manufacture
10. Whole Sale
Dealer
11. Assessee
12. Service

4. 9/2/20144
 Business any trade, commerce, manufacture or any
adventure or concern in the nature of trade,
commerce or manufacture, whether or not such trade,
commerce, manufacture, adventure or concern is
carried on in furtherance of gain or profit and whether
or not any gain or profit accrues there from and
transaction which is incidental to business activities
mentioned above [ Sec – 2(06) of KVAT Act,2003]
 Dealer means any person who carries on the
business of buying, selling, supplying or distributing
goods, directly or otherwise, whether for cash or for
deferred payment, or for commission, remuneration or
other valuable consideration [ Sec – 2(12) of KVAT
Act,2003]
 Goods means all kinds of movable property (other
than newspaper, actionable claims, stocks and shares
and securities) and includes livestock, all materials,
commodities and articles (including goods, as goods
or in some other form) involved in the execution of a
works contract [ Sec – 2(15) of KVAT Act,2003]

5. 9/2/20145
 Input means any goods including capital goods
purchased by a dealer in the course of his business for
re-sale or for use in the manufacture or processing or
packing or storing of other goods or any other use in
business [ Sec – 2(19) of KVAT Act,2003]
 Place of Business means any place where a dealer
purchases or sells goods and including any warehouse,
godown or other place where a dealer stores or
processes his goods, place of produce or manufactures
or processes goods and place where a dealer keeps his
accounts including documents and where a dealer carries
on business through an agent [ Sec – 2(23) of KVAT
Act,2003]
 Works Contract includes any agreement for carrying out
for cash, deferred payment or other valuable
consideration, the building, construction, manufacture,
processing, fabrication, erection, installation, fitting out,

6. 9/2/20146
 Taxable Turnover means the turnover on which
a dealer shall be liable to pay tax as determined
after making such deductions from his total
turnover and in such manner as may be
prescribed, but shall not include the turnover of
purchase or sale in the course of interstate trade
or commerce or in the course of export of the
goods out of the territory of India or in the course
of import of the goods into the territory of India
and the value of goods transferred or despatched
outside the State otherwise than by way of sale [
Sec – 2(34) of KVAT Act,2003]
 Excisable Goods means goods specified in the
First Schedule and the Second Schedule] to the
Central Excise Tariff Act, 1985 (5 of 1986)] as
being subject to a duty of excise and includes salt
[ Sec – 2(c) of Central Excise Act,1944]

7. 9/2/20147
 Manufacture includes any process - incidental or
ancillary to the completion of a manufactured product,
which is specified in relation to any goods in the
Section or Chapter notes of the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986) as
amounting to manufacture or packing related activity [
Sec – 2(f) of Central Excise Act,1944]
 Whole Sale Dealer means a person who buys or
sells excisable goods wholesale for the purpose of
trade or manufacture, and includes a broker or
commission agent who, in addition to making
contracts for the sale or purchase of excisable
goods for others, stocks such goods belonging to
others as an agent for the purpose of sale [ Sec – 2(f)
of Central Excise Act,1944]
 Assessee means a person liable to pay the service
tax and includes his agent [ Sec – 65B(7) of Chapter

8. Main Important for Service Tax
9/2/20148
 Service means any activity carried out by a person
for another for consideration, and includes a declared
service, but shall not include—
(a) an activity which constitutes merely
(i) a transfer of title in goods or
immovable property, by way of sale, gift or in any
other manner; or (ii) a transaction in money or
actionable claim
(b) a provision of service by an employee to the
employer in the course of or in relation to his
employment
(c) fees taken in any Court or tribunal established
under any law for the time being in force. [ Sec –
65B(7) of Chapter V, Finance act,1994]

9. Type of Registrations
Under K VAT Under Central 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
Based on the type of the business the
client deals with, the selection of type
of Registration applies
9/2/20149

10. Where do Law specify the
Registration as Mandatory..?
 Chapter III of Karnataka VAT Act,2003 specify the
registration for VAT
 Section 6 of Central Excise Act, 1944 for Excise
 Section 69 of Chapter V of Finance Act,1994 for
Service Tax
9/2/201410

11. 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/- in one month
 For Central Excise if entity deals in manufacturing or
production and trading of goods specified in First
and Second schedule of Central Excise Tariff
Act,1985. Exemption Limit is available for SSI units
upto Rs. 150 Lakhs for First clearances in any
Financial Year starting from 1ST April (Notification
8/2003)
 For Service Tax if taxable turnover exceeds Rs.9
lakhs in the Previous Year and exemption Limit of
Rs.10 lakhs in Current Year
9/2/201411

12. In Detail of SSI- Small Scale
Industries
9/2/201412
 When is an entity called as SSI…?
A. According to Ministry of Micro, small and
medium enterprises SSI IS “ Small scale and
ancillary units i.e. undertaking with investment
in plant and machinery of less than Rs. 10
million. [Micro, Small and Medium
Enterprises Development Act,2006 – MSMED
Act]
 What do Notification 8/2003 (Tariff) say?
A. Clearances need to be the excisable goods
specifed in First and Second schedule with few
exceptions like undergarments, blankets of
wool, sandal wood oil and many other goods.

13. Registration Required on Service
Recipient Basis
9/2/201413
1. Insurance
2. Goods Transport Agency
3. Sponsorship
4. Arbitral Tribunal
5. Advocate Services
6. Support Service
7. Rent or Cab Service
8. Supply of Manpower
9. Works Contract Services
10. Import of Service [Section 66A- Chapter V of
FA,1994]
- [Notification No 15/2012]

14. How to register under VAT?
 Apply online by visiting the www.ctax.kar.nic.in
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 submitted, the VAT
commissioner will inform the VAT Inspector for
physical verification of business and documents
explained further
 Vat Tax Identification Number(TIN) will be allotted
on Receipt of nominal fee Rs. 3,500/-
9/2/201414

15. Documents required for Registration
Common for VAT, Service Tax and Central Excise
1. Incorporation Certificate of Company (in case of Companies)
2. Memorandum of Association & Article of Association (in case
of Companies)
3. Partnership Deed in case of Partnership Firm
4. True copy of Board resolution empowering company
representatives as Authorized signatories.
5. Rental Agreement/ Lease Agreement
6. PAN Card of Corresponding Business Entity
7. Address Proof of Director – Lease / Rental Agreement,
Electricity Bill
8. ID Proof of Director – Pan Card / Election Card/ Passport/
Driving License
9. Passport size Photograph of Management
10. Registration copies with other Departments like PT, Labour
dept. 9/2/201415

16. For Central Excise
 Logon or Login in www.aces.gov.in under Central
Excise
 Select the Form applicable i.e. Form A1 or A2 or A3
or Non Assessee and Declarant available under
registration column
 Registration Certificate is proof for our registration
 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
Tariff Heading for List of Major Goods are
required for filling of the Application Form
9/2/201416

17. For Service Tax
 Logon or Login in www.aces.gov.in under Service
Tax Column
 Select the Form ST 1 available under registration
column and fill the details as required
 Certificate of ST-2 is obtained as proof of
Registration
 Major Requirements under this form are:
1. List of Major services that provided
9/2/201417

18. Few Examples for Type of
Registration
[ Limits has been exceeded ]
Type of Registration
Required
Service Tax
Service Tax and VAT
Service Tax and VAT
Service Tax
Service Tax and VAT
Service Tax
Excise and VAT
Name of the Entity
Bank
:
Job Worker
:
BBMP and BMTC
:
Redbus
:
MC Donalds , KFC
: 9/2/201418

19. Type of Registration in case of
Branches
What should an entity do if has Branches..????
 As VAT is state government tax, registration of
branches to be taken in respective states only
 In case of Multi points of business or branches,
the client can apply for registration as “Input
Service Distributor” useful for passing on the
cenvat credit of Service Tax
 And entity can also avail the Centralised
Registration for the branches of business for
Service Tax
9/2/201419

20. Accounting For Registration
Expenses
 Accounting for Expenses met for establishing an
entity like company is accounted as Revenue
Expenditure
 In the same way Statutory Registration under
IDT also.
 Fees met for this registration to be expensed
under “ Rates and Taxes”
9/2/201420

21. Few Questions……????
9/2/201421
 A from Delhi reached Bangalore for giving gold
ornaments designing. For that he purchased raw
material and stationery in Bangalore itself. He is
not registered under any IDT. He wants our help
to take registration. Under where he is liable to
Register..?
 Raja has a business of buying goods locally and
exporting them. Now which IDT registration
applies to him?
 Ms. Radha is a beautician, exceeding taxable
turnover limit of 9 Lakhs in Previous Year.Curent
Year limit is also exceeded. But she has became
Mrs.Radha by the end of the Year. Now who is
responsible for un registering under Service Tax

22. ………..Continued
9/2/201422
 Mr. Sharath Chandra is dealer in trading of
excisable goods from Rajasthan to Hyderabad.
Occasionally he comes to Bangalore to do the
same business. Now where all the places he has
to register?
 Shree Manjunath Traders is into the business of
trading the plywood. Sale of goods are made as it
is but description of goods is different from
purchase bill to Sale Invoice.?
 Srimadth & Co provide advocate services to the
clients in addition to tax consultants. In this
criteria who has to register and under what?

23. Auditor’s Role
 He has to check the registration certificate for
clear and correct understanding of the client’s
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
 New Feature CFC – Certified Facilitation Centres
made by ICAI, ICWI
9/2/201423

24. Can Contact Me:
Mob: 8892879593
Mail me:
kapilchidurala93@gmail.co
m
9/2/201424