A Step-by-Step Guide to Filling Out Your VAT Tax Return Online

VAT is a type of tax collected at each stage of the production or distribution process on goods and services. The Value-Added amount is calculated initially, and all interstate transactions and sales are taxed. VAT has equally helped traders and company owners to pay taxes smoothly and transparently, which benefits the government as well.

All companies having an annual turnover of Rs. 5 lakh or more shall have to pay VAT. This is done by filling out a VAT registration that will be approved in 20 to 40 days. Upon approval, pay through an e-payment after grossing the amount collected. Use your state's Commercial Taxes website to log in and sort out your VAT returns online for VAT: Monthly or quarterly (depending on turnover and state).

Following are the steps for VAT Tax Return Online:

Step 1: Log in

Login at your State Directorate of Commercial Taxes online portal. The state governments collect the VAT, and therefore, each state has its own system of VAT Submission Online. Nevertheless, the strategy is the same for all.

Step 2: Password Change

If you log in to the site for the first time, you will be asked to change your password, and you should do so.

Step 3: Form 14D

Then, download the PDF version of your compressed Form 14D file, and you will see the form in a PDF format after extracting it. This is the form for VAT return filing, which should be filled out along with annexures.

Step 4: Fill out the form

Once the download is complete, the form and all downloaded annexures must be completed with the information included in your VAT Return Online receipts and other pertinent details. Depending on the quantity of transactions, this could take a few hours or a whole day.

Step 5: Generate XML

Using the software obtained from the Directorate of Commercial Taxes online portal, you can generate XML files from completed forms in minutes. Only Form 14D should be uploaded in XML format, not the annexures because it only needs to be digitally processed.

Step 6: Upload

Upload the created XML file, as well as the completed annexures.

Step 7: Correct Mistakes, If Any

At this point, the file system detects errors immediately, so make sure that all data uploaded is right, or the server will prompt and ask you to correct them.

Step 8: Acknowledgement

When all forms have been properly submitted, an acknowledgement receipt will be generated. This is proof that you filed your VAT Tax Return Online for the month. You may either download or print this receipt.

Bottom Line

All manufacturers of goods and services must file VAT Tax Return Online with the government of India. Any dealer, whether in the manufacturing or trading industry, a partnership, single proprietorship, or a private limited company with an annual turnover of more than Rs.5 lakhs, must register with the VAT Department. However, this sum is subject to State legislation and may be adjusted by the State Government.

However, dealers who are not required to register may reap the benefits of generating tax invoices.