FREQUENTLY ASKED QUESTIONS ABOUT NEW USER LOGIN REGISTRATION

ANSWER:In India, States have agreed for levying tax on sale of most of goods under VAT Scheme of taxation @ 1 %, 4 % and 12.5%. In cases of few commodities like liquor (alcohol), Diesel Oil, Petrol, etc, States have agreed for continuing levy of tax under the old system of sales tax. For the purpose of this Web Site, Goods on the sale or purchase of which tax is levied under VAT Scheme have been referred to as VAT GOODS. Contrary the goods on the sale of which tax is levied under old system of sales tax, have been referred to as NON VAT GOODS.

      In respect of Non VAT Goods, Empowered Committee of Finance Ministers of various States of India, constituted for laying down the basic norms for introduction of VAT, has fixed minimum rate of 20 % in respect of Non VAT Goods but it has not fixed upper limit of rate of tax. Only one sale of these goods is to be taxed. Some of the States have not adhered to these norms strictly. Rates of tax on sale of these Non VAT Goods may differ from State to state. Also number of such goods may also differ.

      Due to our limited resources we have not compiled rates for all States. Also that would have restricted utility of this Web Site. Therefore, we have left this task for users. In the scenario, users of other countries may also find it useful.

ANSWER: No, a usewr is required to know and enter only rates which are attrated to sale or purchase of goods in which he deals. Rest of the fields are to be left balnk.

EXAMPLE: A user deals in silver, gold, diamonds, ornaments of gold or silver or jewellery. Sale of these all goods attracts liability of tax @1 %. If such dealer does not deal in any other goods, he is not required to know or enter other rates of VAT in the Registration Form.

Suppose a dealer deals in sales of gold, silver as well as sales of cotton and iron steel. In this case sale of silver and gold attracts VAT rate of 1 % whereas sale of cotton and iron-steel attracts VAT rate of 4 %. In this case such dealer will have to register I Tax Rate Slab of 1 % and second Tax Rate Slab of 4 % under VAT Goods.

Suppose a dealer also deals in sales Cement, Cosmetics and Timber apart from sales of gold, silver, cotton and iron steel. In this case sale of silver and gold attracts VAT rate of 1 %, sale of cotton and iron-steel attracts VAT rate of 4 % whereas sale of Cement, cosmetics and Timber attracts tax rate of 12.5 %. In this case such dealer will have to register I Tax Rate Slab of 1 %, Second Tax Rate Slab of 4 % and Third Tax Rate Slab of 12.5 % under VAT Goods.

Similar is the case with Non VAT Goods.

ANSWER: Yes, Ony those tax rate slabs, which are attracted to goods which are brought or received into the local area, are to be entered

ANSWER: In India, a decision has been taken for accepting certain percentage of turnover of sale as net amount of tax payable by a dealer whose annual turnover does not exceed 50,00,000 INR and who makes only retail sales of goods purchased from within the State of sale. Such dealers are not required to issue Tax Invoices and are also not entitled for claiming refund (credit) of Input Tax (VAT paid on purchase). Such rate percent is known as composition rate for retailers.

ANSWER: In that case for all tax rate slabs default value 0.00 is automatically entered. Any of the service under login does not require or permit entry of tax rate. It displays and uses the tax rate registered by user by entering on the registration Form. With tax rate 0.00 tax amount cannot be computed.

ANSWER: A user can register his username and password and therafter, after login, he may enter any dummy data for earlier period.

ANSWER: Normally every taxable dealer is required to submit return of turnover and tax periodically. This may be month or quarter of an year. This period of month or quarter has been termed as periodicity. The date on which such period of month or quarter expires has been termed as last date of tax period. When these terms are combined together they define the duration of period for which computation is being made.

ANSWER: Financial year may be entered as 2009-10 or 2009-2010 format or any other format. Calendar year, if entered, may be entered as such e.g. 2009. But single pattern is to adopted strictly for all services.

ANSWER: Some fields are mandatory to be filled in. Apart from those only such number of fields are to be filled in which are required in individual's case and rest fields where zero or nil figure is to be filled are to left blank, even if figure is zero or nil.