Value Added Tax (VAT) Registration is a tax registration required for businesses trading or manufacturing goods in India. VAT Registration replaced Sales Tax in India and is synonymous with CST Registration and TIN Registration. VAT is a multi-stage tax with the provision to allow ‘Input tax credit (ITC)’ on tax at an earlier stage, which can be appropriated against the VAT liability on subsequent sale. Therefore, VAT is ultimately borne by the consumer.
VAT is collected and governed by the State Government, so each State Government in India has distinct rules applicable for their State based on the type of good manufactured or sold. Hence, it is important for any business involved in the manufacturing or trading of goods to check the VAT rates applicable for the goods they sell in their state and comply with the relevant regulation. VAT Registration is mandatory in most states for traders or manufacturers having a turnover of more than Rs.5 lakhs per year (Rs.10 lakhs in some states). Therefore, manufactures or traders must be aware of the relevant state VAT regulation and obtain registration if required. When registered for VAT, the manufacturer or trader is allotted a unique 11 digit number which will serve as the VAT Number / TIN Number / CST Number for the business.
- Application in VAT (Form 1).
- Additional for CST registration (Form A).
- Professional tax registration (Form 2).
- Copy of the rental agreement of the business place.
- Copy of the address proof, ID proof of the Proprietor / Partner / Director.
- Four PP size photographs of Proprietor / Partner / Director.
- PAN No. & Bank Account No.
- Details of business activities.
- The application alongwith the documents to be submitted to the functional local VAT office.
- Local VAT Office shall conduct an inspection of the premises within three days after submitting the application, after inspection the relevant deposit fee to be paid.
- On payment of the Professional fee deposit the TIN No. will be allotted and Certificate will be issued within a day.