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CA Intermediate · Taxation · Registration

Anand Kumar, a casual taxable person, plans to run a temporary Diwali fair stall in Pune for 20 days. He has no fixed place of business in Maharashtra. He applies for registration and deposits advance tax equal to his estimated tax liability. Which statement is correct?

A casual taxable person's registration remains valid for the period in the application or ninety days from the effective date, whichever is earlier, and it can be extended by up to ninety more days on a fresh application with an additional advance tax deposit.

  1. ARegistration is valid for 90 days from the effective date unless extended, and extension needs fresh advance deposit equal to estimated liability for the extended periodCorrect
  2. BRegistration is valid for one year regardless of the stall period
  3. CRegistration is valid until he cancels it, with no advance deposit needed
  4. DRegistration is valid for 30 days only and cannot be extended

Explanation

A casual taxable person's registration is valid for the period specified in the application or 90 days from the effective date, whichever is earlier. It can be extended by a further period not exceeding 90 days, on application, with a further advance deposit of estimated tax liability for the extended period. Option D is wrong since extension is allowed.

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