Hi Gunesh, **Persons require registration under the VAT Act** 1.All dealer prior to commencement of the VAT Act in the States, having a Registration Certificate either under Local Sales Tax Act or under Central Sales Tax Act are deemed to be the Registered Dealer. A new dealer will be given a 30 days time from the date of applicability of the Act in the State. As per the White Paper on Value Added Tax published by the Ministry of Finance, the registration of dealers with gross annual turnover above Rs. 5 lakh will be compulsory. However every States is flexible to fix the threshold limit within Rs. 5 lakh for the small dealers. 2.Every State shall make the provision for voluntary registration of dealers who are not otherwise liable to pay tax. However the voluntary registration process are same as applicable to other dealers who are liable to pay tax under VAT. 3.Dealers with annual gross turnover not exceeding Rs. 50 lakh who are otherwise liable to pay VAT, shall however have the option for a composition scheme with payment of tax at a small percentage of gross turnover. The dealers opting for this composition scheme will not be entitled to input tax credit.

All dealer prior to commencement of the VAT Act in the States, having a Registration Certificate either under Local Sales Tax Act or under Central Sales Tax Act are deemed to be the Registered Dealer. A new dealer will be given a 30 days time from the date of applicability of the Act in the State. As per the White Paper on Value Added Tax published by the Ministry of Finance, the registration of dealers with gross annual turnover above Rs. 5 lakh will be compulsory. However every States is flexible to fix the threshold limit within Rs. 5 lakh for the small dealers.