All registered dealers in any goods have to file VAT Returns. Tax Returns are a form indicating whether you have paid your taxes or not and so should be carefully and honestly filled out.
These Returns should be filed either monthly; if tax charges exceed rupees one lakh, quarterly; if charges are more than rupees 12,000 but less than one lakh or six monthly; if charges are below rupees 12000. All returns are required to be filed by the 25th of the next month at the latest, either at a bank, if taxes are outstanding, or at a Sales Tax office. Not all banks accept VAT payments and so one can enquire about banks, that do, at the local Sales Tax office.
VAT Returns are required to be filed whether or not business takes place, therefore seasonal businessmen may at times file Nil Returns.
For dealers with businesses in different areas of a country there is a Consolidated Returns that can be filed. These returns, however, can only be filed for those businesses on which the dealer does not possess a Certificate of Entitlement under any Package Scheme of Incentives.
All Returns filed should be thoroughly checked before submission because any error found could subject the filer to interest on the due payments or even punitive measures. If a mistake is confessed one will be given a chance to fix it and file a corrected Return within six months from the end of that period.