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CA Intermediate · Taxation · Registration

Anand Pvt Ltd, registered in Maharashtra, opens a new branch in Maharashtra from which it will make taxable supplies, and it also has a separate business vertical dealing in different goods. Under the registration provisions, which statement is correct?

A person with multiple business verticals in a State may obtain separate registrations for each vertical, subject to prescribed conditions. This is an option, not an obligation for each branch, and there is no turnover condition of Rs 40 lakh attached to it.

  1. AIt must take a separate registration for each branch in the same State
  2. BA person may obtain separate registrations for each business vertical in a State, subject to prescribed conditionsCorrect
  3. CIt can never have more than one registration in a State
  4. DIt may take a separate registration for a vertical only if turnover exceeds Rs 40 lakh

Explanation

A person having multiple business verticals in a State may obtain a separate registration for each vertical, subject to prescribed conditions, such as the vertical being a distinct one and the person paying tax on all taxable supplies of the verticals registered. It is optional, not mandatory per branch. Hence the first and third statements are wrong, and no Rs 40 lakh condition exists.

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