TaxTMI 
TaxTMI 
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?
Restaurant VAT Registration Mandatory
05 Feb 2017 
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Turnover-based VAT registration: restaurants must register when turnover exceeds statutory thresholds; eligible restaurants may opt for compounded rate.
Registration under Tamil Nadu VAT is based on turnover, not profit; dealers whose total turnover meets statutory thresholds must register. For hotels, restaurants and similar eating houses, dealers within the permitted turnover band may opt to pay tax at a compounded rate under the composition scheme. Turnover for this purpose includes purchase turnover liable to tax added to sales turnover. Verification of turnover is typically achieved through audits by chartered accountants or cost accountants and by consulting tax authority records. (AI Summary)
Registration under Tamil Nadu VAT is based on turnover, not profit; dealers whose total turnover meets statutory thresholds must register. For hotels, restaurants and similar eating houses, dealers within the permitted turnover band may opt to pay tax at a compounded rate under the composition scheme. Turnover for this purpose includes purchase turnover liable to tax added to sales turnover. Verification of turnover is typically achieved through audits by chartered accountants or cost accountants and by consulting tax authority records. (AI Summary)