to take vat or tot

[Guest]

sir, we are detergent soap manufacture in Hyderabad.whether we have to register as vat or tot?because we get raw material from unregistered dealer/or with out bill.and also our sale is below 5lakhs, and we also want to start van sales from one town to other towns.and also how to tax ?

[JSW CEMENTLIMITED]

Dear Mr. Sreenivaas,

It is always advisable to get bill for each purchase and sale. Below 7.5 lakhs turnover, there is not need to register for vat or tot but if there is interstate purchase or sale, then you have to get registration under vat and cst for tot dealer until your turnover reaches 50 lakhs.

V.Venkat Raman

AI Summary

Detergent manufacturer advised on VAT/TOT registration rules; interstate sales require VAT/CST registration up to 50 lakhs turnover. A detergent soap manufacturer in Hyderabad inquired about the necessity of registering for VAT or TOT, given their sales are below 5 lakhs and they purchase raw materials from unregistered dealers. They also plan to start van sales between towns. The response advised obtaining bills for all transactions and clarified that registration for VAT or TOT is not mandatory for turnovers below 7.5 lakhs. However, for interstate transactions, registration under VAT and CST is required until the turnover reaches 50 lakhs.