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Telangana VAT Registration

Telangana VAT Registration

Telangana VAT Registration

Telangana VAT registration is a mandatory tax registration required for sellers based in the State of Telangana who conform to certain conditions as listed in the Telangana Value Added Tax Act, 2005. In this article, we look at the Telangana VAT registration, Telangana VAT return filing and VAT payment procedures.

VAT Registration in Telangana

Any person who in the state of Telangana carries on the business of buying, selling, supplying or distributing goods or delivering goods are required to obtain Telangana VAT registration. Only a casual trader, a person or entity that carries on occasional transactions of a business nature involving the buying, selling, or distribution of goods in the State of Telangana is not required to obtain VAT registration.

In addition to the above rules, those Dealers who satisfy any of the following conditions are required to obtain Telangana VAT:

  • Dealer and who sells any goods and has a taxable turnover exceeding rupees seven lakhs in a period of twelve consecutive months or has reason to believe that taxable turnover in a period of twelve consecutive months will exceed rupees seven lakhs and fifty thousand should apply for Telangana VAT registration.
  • Dealer commencing business and whose estimated taxable turnover for twelve months is more than rupees fifty lakhs must obtain VAT registration before commencing operation.
  • Dealer whose taxable turnover in the last twelve months exceeds rupees fifty lakhs must have a Telangana VAT registration.
  • Dealer whose taxable turnover during the period from 1st January 2004 to 31st December 2004 is more than rupees forty lakhs must be registered as a VAT dealer.
  • Dealer who is importing goods in the course of business from outside India.
  • Dealer registered or liable to have CST registration.
  • Dealer making purchases or sales in the course of interstate trade or commerce or dispatches any goods to a place outside the State of Telangana.
  • Dealer residing outside the State but carrying on business within the State of Telangana and not having any permanent place of business.
  • Commission agent, broker, delcredere agent, auctioneer or any other mercantile agent.
  • Dealer availing sales tax deferment or sales tax holiday.
  • Dealer executing any works contract rupees seven lakhs and fifty thousand for the Government or local authority.
  • Dealer opting to pay tax by way of composition on works contract.

Telangana VAT Return & VAT Payment Due Date

Telangana VAT return and VAT payment due date is the 20th day of each month. Failure to file VAT return on time could incur a penalty and interest on any tax due not paid by that date.  Also, even in case of no transaction, persons or entities having Telangana VAT registration must file a NIL return. Failure to file a NIL return by the 20th day of the following month will also incur a penalty.

Telangana VAT Rates

Telangana VAT rates can be divided into five main categories as below:

  • Goods exempt from VAT
  • Transaction zero rated
  • Goods taxable at 1% VAT rate
  • Goods taxable at 5% VAT rate
  • Goods taxable at 14.5% VAT rate
  • Goods taxable at special VAT rates