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Compulsory Vat registration in Mumbai

Today we will discuss the Compulsory vat registration in Mumbai. there are two option for the vat registration in mumbai one is Voluntarily and second one is Compulsory.

Type of VAT registration in Mumbai –

Voluntarily Vat registration- 

As the name itself suggest Voluntarily means self.  If a person wants TIN number from first day he can apply for the Tin number Voluntarily. After taking the number he has to charged the VAT and can take the input credit on the vat.

Compulsory Vat registration

Once the dealer has cross the turnover limit as specified, he has to apply for compulsory vat registration.

Specifies turnover limit will be  –

Category of Dealer          Turnover of Sales (Rs)           Turnover of taxable good purchase or sold (Rs)
Importer     1,00,000                       10,000
Other than Importer  10,00,000                       10,000

Important Note  –

Here importer means the dealer who purchases the good outside the state of Maharashtra.

The turnover limit of Rs. 1 lack or Rs. 5* lacks is including turnover of all sales whether taxable or tax free.

However turnover limit of Rs. 10, 000 is in respect of taxable goods whether purchase or sold.

Documents required for Compulsory vat registration in mumbai –

As we discuss in our earlier blog documents required for vat registration, the same documents will be required for compulsory. but in compulsory need some additional documents

1 Purchase and sale bill copy

2 Bank statements showing the transaction.

Fees and Deposit in compulsory vat registration –

Government Fees for the compulsory vat registration is 535 only also there is no deposit in that also.

Comparison of voluntary and compulsory vat registration

Compulsory vat registration is less costly, you will save government fees and deposit in that.

Documents requirement is more in compulsory registration


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