Skip to content

CA Intermediate · Taxation · Registration

Sharma Traders, a proprietorship in Jaipur, supplies only taxable goods within Rajasthan. Its aggregate turnover in the preceding year was Rs 35 lakh and in the current year it reached Rs 41 lakh on 12 August. The registration threshold for a goods supplier in a normal category State is Rs 40 lakh. Which statement is correct about its registration liability?

The firm must apply for registration within 30 days of the date it becomes liable, which is when its aggregate turnover crosses Rs 40 lakh on 12 August. Liability arises on crossing the threshold during the year, not at year end, and does not depend on inter-State supplies.

  1. AIt must apply for registration within 30 days from the date it becomes liable, i.e., crossing Rs 40 lakhCorrect
  2. BIt need not register until the end of the financial year
  3. CIt must register only if it makes inter-State supplies
  4. DIt must register before crossing Rs 20 lakh

Explanation

A goods supplier in a normal category State becomes liable once aggregate turnover in a financial year exceeds Rs 40 lakh. Turnover crossed Rs 40 lakh on 12 August, so the 30-day window to apply starts from that date. Waiting till year end is wrong because liability arises on crossing, not at year end.

Did you get it right without looking?

One question tells you little. A timed set on Registration shows your real accuracy, how long you take and where you lose marks.

Practise RegistrationFree diagnostic mock

More Registration questions