Sales Tax Instructions

Sales Tax Instructions, 2009
following the month when you receive your registration number. The month in respect of
which you submit your return is called the Tax Period.
Checklist for filling in the registration application form (Form CBR-1).
-- Please ensure that you have signed at the end of the application.
-- Please check whether you have filled in only one of the seven Columns
from 13-19.
-- In this form wherever the address has been asked for, you have to give
the detail of only the address. Please do not write the name of the city in
the Column for address; there is separate Column for that.
-- All the Columns, in which no information had to be entered, must have
been crossed.
DE-REGISTRATION
When can I apply for de-registration?
You may apply for de-registration if
-- You stop making taxable supplies;
-- Your annual turnover goes below the Registration Threshold;
-- You close down or sell your business (if you are transferring your
business as a going concern, you might have to go through some other
formalities);
-- Your legal status changes;
-- You were registered as an exporter because you were claiming refunds
on the basis of zero-rating. You are no longer an exporter and would therefore,
like to de-register.
-- However, none of the above binds you and you may keep your
registration or voluntary basis if you like for the type of business you have or the
type of customers you have.
What if I am transferring my business as a going concern or my legal status is
charging?
In case of transferring of business along with the sales tax liabilities to the new owner,
you do not have to apply for de-registration. In case you are not transferring the
liabilities, you may apply de-registration; however, the new owner may have to apply a-
fresh and have another registration number.
What are the benefits of de-registration?
Once the date of canceling has been agreed with by the Sales Tax collectorate:
-- you no longer have to charge sales tax to your customers;
-- you no longer have to maintain the sales tax records; however, you shall
to keep the previously maintained records for a period of 5 years.
Are there any disadvantages?
-- you may have to account for sales tax on any stocks and assets you have
on hand.