Sales Tax Instructions

Sales Tax Instructions, 2009
What if I am taking over a business as a going concern?
If you are not already registered for sales tax and you are taking over a registered
business as a going concern: you are buying the business without causing any significant
break in trading; and the business will continue to make taxable supplies after the transfer
date, you must register for sales tax. This also applies if you are registered for sales tax
and you change the legal status of your business. You can if you wish, use the existing
registration number of the business, but you and the previous owner must both agree to
certain conditions. If the number is transferred, you will become responsible for all
existing sales tax liabilities of the previous owner. If you do not wish to use the existing
number, you should notify your liability to register on [Form CBR-1: application for
Registration]. You will than be issued with a new Sales Tax Registration Number. Under
these circumstances, the number used by the previous owner will be cancelled.
Can a number of corporate bodies register jointly?
No.
What are my obligations once I am registered?
Once you are registered, you will receive a registration number and a registration
certificate. There are certain obligations you are required to meet as a registered person.
They are given in the following paragraphs:-
Keeping records and accounts: You are required to maintain the purchase register, sale
register, purchase invoices, duplicates of sales invoices, etc. The details about these
records are given in our publication titled, ―Keeping Records and Accounts‖. It is
available with the Taxpayer Information Centers.
Submitting monthly sales tax returns: You would be required to submit the sales tax
monthly return in the designated bank. The return in respect of a month may be deposited
in the bank from the 1 st to the 20 th of the following month. The details about the filing of
return in the bank are available in our publication titled, ―Filling in your Sales Tax
Return-cum-Challan Form‖.
Notifying changes in Registration Detail: Once you are registered, you shall have to
intimate your Sales Tax collectorate of the changes that you bring in your registration
details, like if you change the address of your place where you keep your documents, you
should notify the new address to the Collectorate immediately.
How would I know that I have been registered?
You would receive your registration number accompanied by a certificate of registration
in response in your application to register.
When should I start accounting for Sales Tax ?
As soon as you apply for registration, you should start to maintain records as a registered
person.
What about Sales Tax returns?
You shall be liable to submit your first sales tax return in respect of the month during
which you receive your registration number. This return will cover the entire period that
you maintained records. The return must be submitted no later than 20 th of the month