TNVAT (Tamil Nadu Value Added Tax) Act came into existence on January 1, 2007. VAT is the multi-level tax applied on goods that is charged during different production and supply stages along with the credit provided to the players for the tax they pay at every Value addition stage. The government of Tamil Nadu distinguishes VAT as the most efficient way of taxing utilization of goods rather than their production. To help the payers of Valued Added Tax, the government created the site called tnvat.gov.in. The details like online filing and online payment are available on this site.
TNVat.gov.in is the perfect place for getting the details about dealer registration, refunds, tax rate and download tax forms for the VAT payment. VAT replaces Additional Sales Tax, Surcharge, Resale Tax and General Sales Tax. Three rates are applied in VAT on goods entitled for input tax credit that includes 12.5%, 4% and 1% respectively. People who are bound to pay VAT include dealers performing following activities like supply, purchase, sale and distribution of goods. But, there is a certain limitation of the total turnover of the dealer in terms of purchase and sale.
The dealer is required to hold the total turnover of Rs.10 lakhs per year to get registered under the Central Sales Tax Act. Other dealers with turnover more than Rs. 5 lakhs are compelled to be registered. Dealers in jewelry, casual traders and agent of non-resident dealer must also do registration. There are different modes of payment of tax after the registration process. The modes of payment are either offline or online. Online payment has been facilitated recently on the official site of Tamil Nadu Commercial Taxes.
Dealers are bound to pay tax on or before 20 of the following month for Assessing authority under whose jurisdiction the major place of business are authorized for the statements of the purchases and sales. Nowadays, the dealers of Tamil Nadu prefer the online payment mode as it is simple to access for every kind of dealer. The dealers who are not aware about the online payment of the VAT should read the details mentioned here.
The first step of online VAT payment is to visit the site of TNVAT i.e. www.TNVat.gov.in. After visiting the site, the dealer who is already member of the commercials Tax Act has to enter the login id and password they had received from the department, or the dealer who is not a member has to first fill the application form and submit it either online or offline along with the application fee of Rs. 500. At the home page of the site, there are different tabs available for new application, help for e-payment and online payment of VAT, etc. The dealer has to visit the option of ‘PAYMENT ACCOUNT TYPE’ after clicking on the e-payment link – either retail account holder or corporate account holder.
Then the dealer has to enter the Login Id and Password on the fields available. After logging, the dealer has two options available namely e-payment and payment verification. The first option is for making payment of VAT. After choosing the payment option, the dealer has to select any of the preferred banks from the given choices including State Bank of India, Bank of Baroda, Indian Bank and Indian Overseas Bank. Then, it moves towards the Authentication option for the verification of the password. After the password is checked, the dealer reaches the stage of entering the payment details. The details are to be entered perfectly as the confirmation page is displayed for the verification purpose.
The dealer has to login to the chosen bank after the confirmation of the filled details. The soft copy of transaction details made in the bank should be collected by the dealer. The dealer can also undergo the verification process after finishing the payment. The dealer will be shown all the previous details of the transactions made till date along with payment date, monthly return and amount paid by him. Finally, the transaction of the e-payment finishes here and dealer becomes eligible to collect the Acknowledgment receipt. The bank also delivers the e-Challan to the dealer after doing the Approval process.
- It gives the complete knowledge about the Value Added Tax
- The rules of the Commercial Taxes of Tamil Nadu are explained perfectly
- All the options of being a member or paying taxes are displayed on the home page
- The dealers just need to click directly on the tabs without facing the hassle of searching the required details
- Dealers are provided the option of e-filing on the site itself
- Dealers can register for TNVAT directly from the site