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How to File VAT Returns Online?

How To access the Online VAT Filing System?

All producers of goods and services that are registered under the VAT Act 2003 are furnished a user id and password by the Directorate of Commercial Taxes. Users are required to use this id-password combination to enter the VAT e-filing system. Alternatively, the Directorate help desk may be contacted for retrieving the login details.

Preconditions Required For E-Filing Of VAT:

Before one decides to file VAT returns online, there are a few points that need to be noted. These are basically the prerequisites for filing VAT, online.

Steps for Filing VAT Returns Online:

Listed below are all the steps that go into VAT return e-filing:

Due Date to file VAT Returns

TIN Registration or Value Added Tax Registration is necessary for businesses trading or producing goods in the country. This tax replaced Sales Tax in India and is ultimately borne by the customer. Distinct rules are applicable in every State based on the kind of goods that are manufactured or sold. This tax is put forth by the State Government and therefore the return due date and payment due date for VAT will vary from state to state. These returns are due mostly every month, quarter or year.

Who are all required to file VAT Returns?

VAT Returns will have to be filed by all producers of goods and services to the Government of India. Any dealer regardless of manufacturing or trading business, a partnership firm, sole proprietorship or a private limited company whose turnover annually is over Rs.10 lakhs will have to compulsorily get registered with the VAT Department. However, this amount is dependent on State laws can be modified by the State Government.

However, dealers who are not under compulsion can also obtain registration and can procure the benefit of issuing tax invoice.

VAT is collected at each stage of production, therefore, some of the amounts that has been collected by the customers will be retained by the producers and the rest will have to be paid to the government through designated banks every month.

Advantages of filing VAT returns, Online:

Filing VAT returns online is a great way of keeping up with the taxation process. Some of the most significant advantages of e-filing of VAT are listed below.

Issues regarding the filing of VAT:

Filing of VAT has been made easy for traders with the introduction of online e-filing. However, there are still some issues faced by traders which are related to VAT return filing and which pose great discomfort to enterprise owners.

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