All about VAT in Telangana. Am article especially for Telangana

VAT or Value Added tax is a mandatory tax levied by the state governments. This article talks about VAT registration, which is necessary for the sellers based in the Telangana as per the conditions listed in the Telangana Value Added Tax Act, 2005. Through this article we bring to you the VAT registration, VAT return filing and VAT payment procedures of the state of Telangana.

Telangana VAT Registration

For setting up a business in Telangana which involves buying, selling, supplying or distributing goods or delivering goods, you are required to posses Telangana VAT registration. However if your business involves only occasional buying, selling, or distribution of goods in the State of Telangana, you are not required to posses VAT registration for carrying on your business.

Apart from the above said, if you fall in any of the categories mentioned below, it becomes mandatory for you to obtain Telangana VAT registration.

1) Any dealer who sells goods with turnover exceeding seven lakhs in a year should apply for Telangana VAT registration.

2) Any dealer who is about to start the business and has estimated the taxable turnover for twelve months to exceed rupees fifty lakhs has to obtain VAT registration before the business starts operating.

3) In case the taxable turnover of last twelve months exceeds rupees fifty lakhs.

4) The dealer whose business includes importing goods from outside India.

5) Any dealer who is registered or is liable to have CST registration.

6) The entrepreneurs who make purchases or sales in interstate trade or are involved in dispatching of goods to a place outside the State of Telangana.

7) Dealers who reside outside the State of Telangana but run their business within the State without holding any permanent place of business.

Telangana VAT Return & VAT Payment Due Date

The Telangana government has set it's VAT return as well as VAT payment due date on the 20th day of each month. If in case one fails to file VAT return by the set time, he/she may have to face a penalty.It is extremely important to note that even in case a Telangana VAT registration holder does no transaction, he/she or the entity has to file a NIL return every month. Failure of filing the NIL return by 20th of every month will also incur penalty.

Telangana VAT Rates

• Goods exempted from VAT.

• Transaction zero rated.

• Goods that are taxable at 1% VAT rate.

• Goods that are taxable at 5% VAT rate.

• Goods that are taxable at 14.5% VAT rate.

• Goods that are taxable at special VAT rates.