Sec 2(20) – Casual Taxable Person

A person would be regarded as a casual taxable person if he undertakes supply of goods or services or both:
(a)    Occasionally, and not on a regular basis;
(b)    Either as principal or agent or in any other capacity;
(c)    In a State/ Union Territory where he has no fixed place of business.
A trader, businessman, service provider, etc. undertaking occasional transactions like supplies made in trade fairs would be treated as a ‘casual taxable person’ and will have to obtain registration in that capacity and pay tax. E.g., A jeweller carrying on a business in Mumbai, who conducts an exhibition-cum-sale in Delhi where he has no fixed place of business, would be treated as a ‘casual taxable person’ in Delhi.
The following aspects need to be noted:
•    The threshold limits for registration would not apply and he would be required to obtain registration irrespective of his turnover;
•    He is required to apply for registration at least 5 days prior to commencement of business;
•    The registration would be valid for 90 days or such period as specified in the
application, whichever is shorter;
•    An advance deposit of the estimated tax liability is required to be made along with the application for registration.