Sunday, June 16, 2013

Non Dealer Registration


Do I have to get registered even If I am not a dealer?

Simple Answer

Yes you will have to get registered if you are into the business or providing services i.e. a professional. This is subject to the limits. The limits are as below. 

  1. Purchases or Sale (of Taxable goods) >= 5000
  2. Purchases (of All goods) >= 4,00,000
But if you are purchasing the goods and importing the goods and not having any type of business or professional activities in the city then you are not liable to registration.

Technical Answer

The wordings of Rule 3(1)(b) are as below

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. 4,00,000. (4,00,000 shall be 1,50,000 if population of corporation is below 20 lacs)

Thus a person need not be a dealer to be liable for registration.

This question is not a stand alone question, but just one of the question of the "LBT Questions" series. To view such other questions click here.