Karnataka Commercial Tax Department
Know your KVAT rules, rates, and online payment procedures. The value added tax was introduced in India to replace the general sales tax. The Karnataka VAT Act came into effect in the year 2003. The Karnataka commercial tax department implements and administers all the commercial taxes. VAT has largely streamlined the process of tax implementation in all the states. Since 2014, all the Indian states are implementing the VAT. Most of the procedures related to VAT are digitized. Hence, we have updated all information related to VAT. The value added tax is levied according to the schedule of the products and services. Products and services are categorized under six different schedules. Many products are unscheduled and exempted from VAT.
Every dealer involved in manufacturing and trading are levied KVAT. Hence, it is mandatory to get registered under VAT. The registration requires a dealer to furnish all the details of the business. The state governments have specified a threshold for the taxable turnovers. The Karnataka state government has given monthly as well yearly thresholds. Any dealer or firm with a taxable turnover of and above Rs. 10 lacs need to register for VAT. Registration is also compulsory if the taxable turnover goes above Rs. 83,330/- in any month during a financial year.
Karnataka VAT Registration Online
The Karnataka commercial tax department is now allowing online registration for the dealers. The online procedure has greatly simplified the registration. Here is a step wise online procedure:
- Click here to visit the official Karnataka commercial tax website.
- Locate and click the e-Registration or e-VARDAN option.
- Now you will see step wise options at the left-hand side of the page.
- Fill up the Form VAT-I online. Pay the registration fees online.
- Once the form is completed, you need to upload the required documents. Scanned copies of the required documents and photos should be uploaded.
- After submission, the system will generate the acknowledgement slip. The slip will carry the unique acknowledge number.
- Using the acknowledgement number, you can check the status of your VAT registration.
An inspector checks the premises and approves it for registration. A security deposit is made for the registration. After registration, you may download a copy of your VAT certificate. The original copy will be mailed to you by the Karnataka commercial tax department. You may also pay the fees offline. You will also be given user id and password to file your returns online.
Karnataka Commercial Tax: e-Payment and e-Filing Returns.
The same official website can be used to pay VAT and file returns. Follow the link for e-returns. Login with your unique user id and password. Download the relevant VAT return form. Enter the details including period and amount of the VAT. You may fill up the form online and upload it later. Similarly, you can also pay the taxable value added tax online. The available payment options for online VAT e-payment are debit or credit card or net banking. After paying the tax online, you will receive a URN. The URN is a unique registration number used for further communication. Also you know information about GST registration process at our website.
When to Pay VAT in Karnataka
The payment of VAT is done on the quarterly or monthly basis. Dealers with turnover up to Rs. 25 lacs need to pay tax on the quarterly basis. Dealers with turnover above Rs. 25 lacs need to pay it before 20th of the following month. Do remember to print out the unique transaction id after each online payment of the value added tax. Similar due dates are also applicable for filing VAT returns too. The returns should be filed before 20th of the succeeding month if the turnover for the month is and above Rs. 25 lacs. 1% tax is applicable for the goods and services falling under schedule II. As for goods falling under schedule III and VI, the applicable tax rate is 4%. 20% value added tax is applicable for the goods covered under schedule IV.
The website of Karnataka commercial tax also offers a host of other online facilities. You can search for the VAT registration of any dealer. Just by entering the TIN number or name of the firm, you can verify the genuineness of the entity. Dealers also use the portal for procedures related to other taxes levied by the Karnataka commercial tax department. Other taxes like entertainment tax, luxury tax, and professional tax are also levied. Readers may find the similar information on other states. Check Commercial tax Gujarat and AP commercial taxes on our blog.