Sales Tax / Vat Returns
Sales Tax is an important indirect tax paid to a governing body of the region for the sale of goods and services. Sales tax is charged at the point of purchase or exchange of certain taxable goods, charged as a percentage of the value of the product. It is levied by the State Governments and hence may vary state to state depending on the government in power and its policies. The Central Sales Tax Act governs the taxation laws in the country, extending to the entire country and contains the rules and regulations related to sales tax. This Act states that all companies coming under the purview of Sales tax need to follow certain guidelines and give declarations in prescribed forms as indicated below:
- Form C – This form allows the purchasing dealer to get goods at concessional rates from the seller.
- Form D – This is issued by the government department which purchases the goods.
- Form E1 – This is issued by the dealer who initiates the inter-state movement of goods.
- Form E2 – This is issued by the subsequent seller when the goods move from one state to the other.
- Form F – This is issued when the goods are sent to a different state.
- Form H – This is issued by an exporter for the purchase of goods.
- Form I – This is issued by dealers in Special Economic Zones.
VAT is a kind of tax levied on sale of goods and services is an integral part of the GDP of any country. It is levied in multiple stages of production of goods and services and comes under the purview of state governments and hence may slightly differ from one state to another. Those entities have VAT or TIN Registration must then file VAT returns once their annual turnover crosses Rs. 5 lakh. As implemented by the State Governments, the VAT return due date and VAT payment due date differ from state to state. VAT returns are mostly due monthly, quarterly or annually.
My Office Accountant has an exclusive team comprising Sales Tax and VAT experts, who are ready to go an extra mile and help you file these various tax correctly on time and every time.