Restaurant VAT Registration Mandatory

[Guest]

If the person says that his Profit is ₹ 5 Lakhs per year from Restaurant. Should the owner of the restaurant mandatorily requires to register for the commercial tax to get the Registration Certificate?

AI Summary

Restaurant Owner's VAT Registration Based on Turnover, Not Profit, Under Tamil Nadu VAT Act 2006. A discussion on whether a restaurant owner in Tamil Nadu must register for VAT if claiming a profit of 5 lakhs annually. The primary criterion for VAT registration is turnover, not profit. According to the Tamil Nadu VAT Act 2006, a dealer must register if the turnover exceeds 10 lakhs. Sid E seeks advice on determining turnover based on profit and exploring options to verify sales figures. Suggestions include auditing by CAs or cost accountants and exploring public records through RTI. The forum emphasizes that exceeding the turnover threshold necessitates registration, with a composition scheme available for simplified tax payment.