Value Added Tax (VAT)

VAT Registration Threshold

w.e.f. 01.04.2016, the registration threshold will be Rs. 3m. for one month or three months and Rs. 12 m. for 12 months, excluding exempt supplies, excluded supplies and isolated transactions.

Wholesale or Retail sale of Goods

 

Under the Amendment Act No. 11 of 2015, the registration threshold has been reduced to Rs. 100m. for any period of 03 months, considering all supplies of goods taxable as well as exempt.

 

For any period commencing from 1st November 2016 the registration threshold is Rs. 12.5 m. for a period of any 03 months.

 

VAT Rate

From 01.01.2016 to 01.05.2016 – 11% (under Act No. 11 of 2015)

From 02.05.2016 to 11.07.2016 – 15%

From 12.07.2016 up to 31.10.2016 – 11%

From 1st November 2016 – 15%

 

VAT Returns

Every registered person shall furnish a return for each taxable period in the specified form –

  • before the end of the following month of the taxable period if it is a taxable period commencing prior to 01.01.2017.
  • within 06 months immediately succeeding the end of the taxable period if it is a taxable period commencing on or after 01.01.2017