Legaljini

VAT

Value Added Tax (VAT) is a multi-point levy on each of the entities in the supply chain 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.Any trading or manufacturing business, whether a sole proprietorship or a partnership firm or a private limited company, that sells its products is liable to be registered for VAT. India is likely to shift to GST from 1st July 2017 which will combine various indirect taxes like many other counties.

Registration of VAT is necessary based on initial threshold limit for purchase and/or sale numbers

VAT Process

01

Application for VAT

Submit an application for VAT in Form 1 along with the following documents to the local VAT office:

  • • Central Sales Tax registration certificate(Form A)
  • • Professional tax registration certificate(Form 2)
  • • Copy of important documents such as the address proof, ID proof of the Proprietor/Partner/Director
  • • Four PP size photographs of the Proprietor/Partner/Director
  • • PAN No. & Bank Account No of the Proprietor/Partner/Director
  • • Copy of the rental agreement of the business place
  • • Details of business activities
  • • Partnership deed (in case of a partnership firm)
  • • Memorandum of Association and Articles of Association (in case of a Private Limited company)
02

Inspect

The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time

03

Registration

Once the inspection is over, you will have to pay a specified fee to the local office for your VAT registration

04

TIN number

On payment of the fee, a TIN number will be allotted to you for your business and you will also be given the VAT registration Certificate.