Tuesday, April 2, 2013

Registration for LBT

The starting point for any taxation law is Registration.
So, let's understand what we have for LBT, before I say in my simple language let's hear what Section 3 says about registration.

Section 3 :  The limits of turnover  for registration.-

(1) The limits of turnover  for  registration shall be,-

(a)  in the case of a dealer,  who is an importer  and  whose turnover of  sales or the  turnover of purchases of goods specified in Schedule A, during a year, is not less than  Rs.5000/-, and the value of all the goods imported by him during such year is not less than Rs.5,000/-, and the turnover of all his sales or the turnover  of all his purchases  during  such year, is not less than  Rs. 1,00,000.

(b)  in any other case, including the case where a dealer has not become liable to pay local body tax under  clause (a), and the turnover of purchases of goods specified in schedule A, in a year, is not less than  Rs. 5000, and the turnover  of all his sales. or the turnover of all his purchases during such year, is not less that  Rs. 1,50,000.

For explanation of Rule 3(1) click here

(2) Notwithstanding anything contained  in sub-rule  (1), if a dealer  or a person not carrying  on a particular  business  in   the  City on a regular  basis,  carries  on business  in the  City in any year  on a temporary  basis, then  he shall be liable for temporary  registration  under  the provisions of the Act and these rules,   whether  or not he is liable under  sub-rule (1) of this rule.

After getting over whelmed by the wordings of the act now let us understand what it has to say

Class of Dealer
Taxable Turnover during year (of goods specified in Sch. A)
Total Turnover (Taxable as well as Tax Free) during year
(of all sales OR of all Purchases)
Additional conditions
3(1)(a) Importer[1] Sales>= Rs.5000
purchases >=Rs.5000
  >=Rs.1,00,000 Value of all imports(taxable or tax free) during the year>=Rs.5000
3(1)(b) Any other Purchases >=Rs.5000 >=Rs.1,50,000        -
3(2) Temporary                  -                 -
Carrying on business in city in any year on a temporary basis.

Also See : Other points for Registration
Also See : Online Registration of LBT