Value added tax is a type of tax levied on sale and purchase of goods and services. Though VAT is borne by the final consumer of goods and services, it’s collected and submitted by a seller of product to the state government. That is the reason for it being categorized as an indirect form of tax. That means, value added tax returns are filed by seller of goods and services. Every state in the country has distinct rules for collection of value added tax as it’s a state based tax system.
Pre-specification for filing VAT returns online
- Manufacturing or selling enterprises having turnover equal to or more than Rs.5 lakhs are required to register themselves for filing value added tax returns. It’s a mandatory requirement for all enterprises involved in the sale of goods and services to get the registration done when the stipulated turnover limit exceeds.
- As a process of registration, enterprises should apply for TIN (Tax Identification Number) before filing the returns online. Tax identification number is an 11 digit numeric code issued by the particular state tax department for the purpose of tracking tax related transactions.
- After the enterprise gets registered under particular state’s Value Added Tax Act, they will be provided with login details comprising user ID and password from Directorate of Commercial Taxes for e-filing the VAT returns.
- Registered enterprises must download the client software from the official website of Directorate of Commercial Taxes. They should ensure uploading data of returns filing in XML format.
- Registered dealers should have the particular components installed in their computer as specified in the e-filing portal of Directorate of Commercial Taxes.