Before the Value Added Tax(VAT), there was General Sales Tax(GST) in force and it was common to all business people irrespective of business turnover. But after the introduction of VAT it become as a complicated issue for small merchants to pay the Tax on Sales and to maintain the Books of Accounts.
|Form VAT 001|
As per the AP VAT Act 2005 on or after March 1, 2005 every Trader whose turnover exceeds Rs. 40 Lakh has to register as a VAT Dealer and he has to pay the tax on Sales and must maintain the Books of Accounts and other Records. And for those Traders whose turnover does not exceeds Rs. 40 Lakh are exempted from VAT purview.
The Commercial Tax Department not allowed to collect the VAT amount on Sales from such Traders instead they have introduced the Tax On Turnover which is termed as TOT and is a kind of Indirect Tax. Merchants whose turnover is in between Rs. 5 Lakh and Rs. 40 Lakh for the 12 months has to obtain the TOT Dealership Certificate from the concerned Commercial Tax Office. For this the Applicant has to complete the FORM TOT 001 and submit it to the concerned Commercial Tax Officer in his circle.
How to Register for TOT Certificate from Commercial Tax Department?
All the Merchants whose turnover exceeds Rs. 5 Lakh and does not exceeds Rs. 40 Laksh has to obtain the TOT Certificate from the Commercial Tax Department by submitting the Form TOT 001. It is mandatory to register as a TOT Dealer, if the turnover lies in between the above said amounts.
If the Trader is not applied for VAT Registration they will be issued by a Notification of General Registration as a TOT Dealer, provided your taxable turnover exceeds Rs. 5 Lakh but not Rs. 40 Lakh for 12 months after 31-12-14.
If you are applying for Registration as a TOT dealer under the APVAT Act 2005 on or after 1-4-2005, you must complete a simple application in form TOT 001 and take it to your Tax Office. You will receive a Notice of General Registration if your application is satisfactory.
There are some Obligations are framed for TOT Dealer
There some obligations framed by the APVAT Act 2005 for the TOT Dealers and the terms are jotted down.
- The TOT Dealer has to submit the summary report of his Turnover (Sales) each quarter to the Commercial Tax Department through e-Returns.
- After e-Returns quarterly the TOT Dealer has to pay the Tax either from Treasury Bank or through Online Payment System from Commercial Tax Department website for each quarter ending June, September, December, and March by the end of the following month.
- If, the TOT Dealers fails to file and pay the levy dealer will be charges with penalty and interest charges.
- The TOT Dealer is not allowed to claim the Input/Credit Taxes from the Purchase Invoices he made from the VAT Dealer.
- He is not authorized to issues TAX INVOICE.
And this about the Tax on Turnover (TOT) and how can a trader register for the TOT Dealership from Commercial Tax Department? And What the TOT Dealer has to do and not to do after obtaining the TOT Certificate.