Sales Tax Instructions

Sales Tax Instructions, 2009
What if have to register again?
You must notify your local sales tax office promptly if you become liable to be registered
at any time in the future. Remember, there are penalties for failing to register at the
proper time.
COMPULSORY REGISTRATION
What is compulsory registration ?
If the Collector of Sales Tax thinks that a particular business has not been registered
whereas it should have been, he may compulsorily register the business. The notification
to that effect shall be sent to the last known address of the business. From the date so
mentioned in the notice, the compulsorily registered person shall have to submit the
monthly return in the bank.
What is the legal course of action when you have been compulsorily registered?
You have a right to go into appeal against any decision of any sales tax officer. The
compulsory registrations a decision by the sales tax officer, therefore, it can be appealed
before the Collector (Appeals). OR you start to operate as a registered person.
VOLUNTARY REGISTRATION
What are the advantages of voluntary registration for a person not under obligation
to register?
There would be the following advantages to you if you register voluntarily:-
-- You can claim input tax refund on your tax-paid purchases.
-- Your customers can claim input tax on your taxable supplies of them
they are registered persons.
Is it advisable that I should register voluntarily?
There are the following occasions where it is beneficial to register:
-- If more than 50% of your customers are exporters.
-- If most of your customers are registered persons.
-- If most of your raw material is sales tax paid and you buy it from
registered persons.
What are the dis-advantages of voluntary registration?
You are at a dis-advantage if your customers are not registered persons, therefore, in that
case you should not go for voluntary registration.
Can I voluntarily forego exemption available to a tax-exempt area and getregistered?
Yes. In some situations manufacturers in tax-exempt areas may be at a disadvantage
because their purchasers wish you get a tax invoice in order the claim input tax credit.
Therefore, you can voluntarily get registered even if you are in the tax-exempt area. This