Karnataka VAT Registration

Karnataka VAT Registration and VAT Filing

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Karnataka VAT Registration and VAT Filing

As per the legislation, each State of India is allowed to enact a VAT Act based on the Empowered Committee’s guidelines to ensure uniformity of law across the country. In Karnataka, VAT is governed by the Karnataka Value Added Tax Act, 2003 which extends to the whole of Karnataka. As per VAT rules, a dealer pays VAT tax on his/her purchases, collects and retains the VAT tax on his/her sales and pays the balance to the Government Treasury. Therefore, VAT is a multipoint tax system wherein the tax paid by the dealer is passed on to the Buyer. In this article, we look at the procedure for Karnataka VAT Registration, VAT Return Filing and VAT Payment.

Karnataka VAT Registration

In Karnataka, VAT tax is based on the Karnataka Value Added Tax Act, 2003. The Karnataka VAT Tax Act extends to the whole of Karnataka and is applicable on the sale of all goods and products in the State. As per the VAT Act in Karnataka, VAT Registration is mandatory for the following entities:

  • Any person having a turnover exceeding Rs.62,500 in any one month
  • Any person whose taxable turnover is likely to exceed Rs.7.5 lakhs during a financial year
  • A dealer who imports or exports goods out/from the State of Karnataka
  • Casual dealers entering into any occasional transaction of purchase and sale in a state without carrying on a regular business

Anyone else who is not required to get KAT Registration may also register to get voluntary Karnataka VAT Registration.

Karnataka VAT Tax Rates

In Karnataka, VAT Tax Rates are levied under four categories. All goods full under one of the four categories below and subject to the VAT Tax rate for that category:

  • Schedule I – VAT Exempted Goods (Example: Books, periodicals, journals, fresh milk, curd, meat, unprocessed sale, etc.,)
  • Schedule II – 1% VAT Rate (Example: Bullion, Gold, Precious Metals, Precious Stones, etc.,)
  • Schedules III and VI – 4% VAT Rate – also depends on nature of work contract (Example: Utensils, bricks, coffee bean and seeds, hosiery goods, readymade garments, etc.,)
  • Schedule IV – 20% VAT Rate (Example: Narcotics, Molasses)

The Entire Karnataka VAT Tax Rate can be downloaded here.

Karnataka VAT Return Filing

In Karnataka, dealers having a total turnover of upto Rs.25 lakhs are required to file Quarterly Karnataka VAT returns on or before the 15th day form the end of each quarter. Dealers having more than Rs.25 lakhs of sale turnover are required to file their Monthly Karnataka VAT returns on or before the 20th day from end of the month.

Karnataka VAT Payment or Deposit

In Karnataka, dealers having a total turnover of upto Rs.25 lakhs are required to pay or deposit VAT tax on or before the 15th day form the end of each quarter. Dealers having more than Rs.25 lakhs of sale turnover are required pay or deposit their Monthly Karnataka VAT payment or deposit on or before the 20th day from end of the month.

 

To obtain Karnataka VAT Registration, visit IndiaFilings.com

Comments (4)

Anil Udayabhanu

Jul 09, 2015 at 7:04 AM

Dear Indiafilings team,

I am running a pharmacy in Karnataka Bangalore, its a new startup. I was not aware that i need to file it monthly. After reading your blog seems like i should file it quaterly . Since last 6 months my monhtly turn over have not exceeded 50,000 INR please advise what should i do. When i go to http://vat.kar.nic.in > PurchaseUploadFiles.aspx ; i can see the quaterly option button however it is greyed out. Is it that commercial office needs to enable ?

Reply

Vishnu Vardhan

Oct 20, 2015 at 12:30 PM

Hi Team, I am planning to sell Sarees in Bangalore. Kindly let me know whether Sarees comes under VAT exempted goods. Thanks in advance

Reply

Raviprakash

Feb 15, 2016 at 2:40 PM

Hi am looking for launch a new product in Bangalore and manufacturing unit located in Kerala and we have paying VAT and also TIN number is there so pls guid me how to pay sale tax to Karnataka

Reply

IndiaFilings

Feb 19, 2016 at 5:46 AM

Hi Ravi, if you have a place of business in Karnataka, when you will need a VAT registration in Karnataka

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