Government Grants VAT Submission Exemptions for Small Businesses

The government has introduced exemptions for small-scale businessmen during VAT (Value Added Tax) submissions.

As per the latest directive from the Internal Revenue Department, taxpayers engaged in transactions totaling less than 10 million rupees annually and subject to value-added tax will now be required to submit their transaction details on a quarterly basis.

Previously, businessmen who collected value-added tax with transactions exceeding 10 million rupees had the option to submit their details either monthly or quarterly.

However, effective from the month of Shrawan, this provision has been enacted specifically for businesses in sectors such as the brick industry, hotels, tourism, and movie houses. Consequently, taxpayers with an annual turnover of more than one crore rupees will now need to submit their transaction details on a monthly basis.

To provide relief to small taxpayers and streamline the process, the government has allowed them to submit their statements once every four months, reducing both costs and time spent on the tax submission process.

Taxpayers who were previously submitting their tax returns monthly will now have deadlines on the 25th of Mangsir, 25th of Chaitra, and 25th of Shrawan for their submissions.