Having two VAT TIN in a State

[Ganeshan Kalyani]

Dear Expert,

I would like to discuss on a issue where a company has two registration number under VAT. This could have happened so during the transition phase from erstwhile Sales Tax regime to VAT regime. This could be a fault on assessee part or a fault of department. What is the consequences to the company having two VAT TIN in a State.

[YAGAY andSUN]

Dear Ganeshan,

Under VAT regime, Dealer are under obligation to obtain only one TIN from their jurisdictional State VAT Authorities. If two TIN had been issued or obtained as the case may be, then, dealer is under statutory obligation to disclose it to the concerned authority as if Department detect it then they can impose penalty for non filing of returns etc. So it is better to have a meeting with Jurisdiction VAT commissioner in this regard and sort the issue once for all.

Regards,

YAGAY and SUN

(Managment, Business & Indirect Tax Consultants)

[Ganeshan Kalyani]

Sir,

The company has two business viz A and B. In fact, one registration number is used to file return for A business and the second VAT TIN for second business B. Returns are filed regularly and assessment also happens regularly. Here, can business A send material to B business as stock transfer or will be treated as local sale as the registration number is different. What is a suitable solution in this case.

[YAGAY andSUN]

Dear Ganeshan,

It is humble request to freeze your query in initial stage only. Any how, as stated above a dealer can obtain/have only one TIN despite of units he is having within State.

It is settled legal position that Sale to Self is no Sales. Please discuss this matter with your counsel/consultant who would in turn represent it before jurisdictional commissioner to sort it out.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[Ganeshan Kalyani]

This query is not related to any company in specific. Anyway with due respect to your request i shall stop posting queries.

AI Summary

Single VAT registration: duplicate TINs must be disclosed and regularised to avoid penalties and transfer reclassification. A dealer must hold only one VAT TIN in a State; duplicate TINs should be disclosed to the jurisdictional VAT authority and regularised to avoid penalties and assessments for non filing or misreporting. If one legal entity operates multiple units under different registrations, inter unit transfers may be treated as taxable sales unless registrations are consolidated and administrative confirmation obtained that such movements are internal transfers, so counsel and the VAT commissioner should be approached to resolve and regularise the position.