Value Added Tax (VAT) is a multi-point sale tax with a set-off for tax paid on purchases. VAT is supposed to be paid by the manufacturer of the goods or by the service providers to the government. It is a multi-level taxation system that the tax is levied at each stage of production of goods. VAT as a taxing process has been carried out by almost all nations of the world.
Companies whose annual turnover more than Rs.5 Lakhs are liable to pay VAT. Value Added Tax is applicable for both local and imported goods and services. Companies/Organization can have the provision to file VAT returns either Online or offline. For your understanding, we are providing the steps that feed into the entire VAT-filing process.
How to access the VAT Filing – Online?
The manufacturers of goods and services which are registered under the VAT Act 2003 are furnished with a user id and password by the Directorate of Commercial Taxes. The taxpayer is required to use his account details to enter the VAT e-filing system.
Preconditions for E-Filing of VAT – Value Added Tax
Let us take a look at few points that need to be noted. These are the requirements for filing VAT online.
- Get your Tax Identification Number -TIN number before taxpayer starts the process of e-filing of VAT return. For getting TIN (Taxpayer identification number) number, the assessee has to contact with his state’s tax department. TIN is an 11 digit number. First, two digits, represent the state identification. For example, TIN – 27130584363. In this first two digits, 27 represent the state code of Maharashtra.The tin number is an 11 digit TIN number is used to track all tax related progress related to your company.
- The taxpayer needs to have his/her user-id and password as furnished by the Directorate office. Without these, no user can log in to pay his or her VAT return online.
- The password that is furnished to taxpayer needs to be changed when to log in for the first time.
- VAT returns e-filing can be done online only if the assessee has the software that accepts data for online Vat return filing and then processes it to XML for uploading later. This software (client) can be downloaded from the online portal of Directorate of Commercial Taxes once you have logged into the system
Steps for VAT eFiling – Vat Return Online Filing
Value Added Tax is determined and collected by the State Governments. Each State has a separate VAT Regulation based on the type of goods sold. Hence, it is best for businesses to be aware of the State’s VAT Regulation related to them. Let us take a look at Procedure for VAT Efiling process. Here we are providing the simple steps for VAT return Online Filing procedure.
- Log in to the Directorate of Commercial Taxes for your respective state. Since Value Added Tax comes under the prerogative of state governments, hence different states in India have different VAT e-filing portals.
- A new customer will be prompted for password change which you should certainly do.
- Download the Form 14D PDF version which is the VAT return filing form.
- After successful completion of the download, the 14D form, and all the downloaded annexures need to be filled duly with data about your VAT receipts and other relevant details.
- Create XML file out of the filled forms by using the downloaded software from the Directorate of Commercial Taxes online portal.
- Upload the generated XML file and duly filled annexures.
- After successful submission, an acknowledgement receipt will be made. You can download and save this receipt for future reference of e-filing of VAT.
Advantages of VAT e Filing
VAT e Filing is a great way of keeping up with the taxation process. Some of the benefits of e-filing of VAT are mentioned below.
- Secure processing of VAT return since the tax department can easily avail all the uploaded information about a particular company.
- Compared to the Physical( Manual) filing of VAT Online filing is a less tedious and less time-consuming procedure.
- The Assessee can track details such as pending documents, and payments for any dealer. And he can modify their information or make submissions on time and avoid paying interest or penalty.
- Records of the dealer are maintained on the online, which makes it easier for the department to go back and check whenever required. For the user point of view, it is convenient since the user will not have to reproduce relevant documents over and over.
VAT Due Dates
Let us take a look at Value Added Tax Return filing due dates.
|Nature of the Asseessee||Due date|
|Deposit of Quarterly Vat E- Return ( Vat-10 form)||15th August, 15th November|
|For composition dealer – Vat Annual Return ( Vat-11)||15th February, 30th May|
|Vat Annual Return ( Vat-10A ) & Audit Report||