Can there be two VAT registration done in single premises with same survey number? - Professionals - Taxation - TIK Share
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Can there be two VAT registration done in single premises with same survey number?


Vinayak Gajendragad

2016-01-06

Dear CA,

 

Our landlord has a VAT reigstration in his premises. He has sublet the premises to us and we now would like to register for the VAT. He is not running his business now and we want to run. 

He doesn't want to cancel his registration, neither he does he want to shift the address to somewhere else. Without VAT, we can't run our operation in this premises.

Can we make rental agreement in such a way that the premises is divided in to two blocks and apply for our VAT separately? Is that legal?

Alternatively, can we apply for VAT in someother address and carry out the business in this premises?

Is there any other way out?

Thanks in advance.

 

Vinay. G

 

Vinayak Gajendragad

2016-01-06

VAT dept is saying that since there is no prior bifurcation of the plot as no 1 and no 2, although there are separate entrances to two different buildings, it is not possible to have VAT in same premises. pls guide further.

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CA Pulkit Sharma

2016-01-07

Vat department does not issue 2 registrations in a single premises. You can put a partition board and get the registration. You can get multiple registration in a single hall if each area is seperatly partitioned and marked.

Rent agreement should be seperatly made for each partition stating measurment.

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Vinayak Gajendragad

2016-01-07

Thanks for the reply. Let me be more specific about our case. The landlord owns a KIADB plot where two separate buildings are built in same premises with single fencing and main gate. One building is office and other one is shed. There is an open area for times the size of both buildings put together. 

He has only one address (say #1234) for the entire property. He already has one company in there and has a VAT for that company. But that company isn't functioning and he's given the property to us on rent. 

My question was, in above scenario, is it possible to make only rental agreement as #1234A which is bigger shed and leave #1234B for smaller shed where he can still retain his existing VAT? 

Further, VAT official is saying that change in A or B has to happen at KIADB and rental agreement is not an authentic document for this purpose. We also have an NOC from the landlord for this purpose but VAT office is denying it. 

Is there any way out? 

 

 

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Vinayak Gajendragad

2016-01-11

Dear Mr. Pulkit Sharma,

awaiting your reply.

 

Reply

CA Pulkit Sharma

2016-01-11

You should have any issue in getting vat registration as per details provided by you. You can get VAT registration if each area is specifically seperatly identifieable.

However VAT department is also right stating that the ultimate owner of land should set the conditions.

Check the initial lease agreement with KIADB, if agreement allows owner to sublet property then there should be any issue.

Submit the initial document to VAT department stating the sublet rights.

Even we should consider KIADB Act and rules, these rules require filing an application for each amendment. VAT department is right, an application should be made to KIADB to allow subletting of property.

You should check and consult for following things for further actions:

  1. KIADB act and rules to allow subletting, as KIADB land is provided for a single project.
  2. KIADB lease agreement to allow subletting.
  3. NOC from KIADB and changes in agreement if applicable.

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Vinayak Gajendragad

2016-01-11

thank you. 

 

i am reading your message as...

 

You should "NOT" have any issue in getting vat registration as per.......

 

.....owner to sublet property then there should "NOT" be any issue.

 

correct me if i am wrong.

 

 

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CA Pulkit Sharma

2016-01-11

Yes if KIADB agreement has given subletting power to owner, there should not be any issue.

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CA Pulkit Sharma

2016-01-11

Sorry for typo its "Not".

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