The Registration of sales tax is mandatory in India for any business entity engaged in the sale of goods. No VAT is levied on the goods exported.
VAT Registration replaced the sales tax registration in India and is now, synonymous with CST and TIN Registration.
Value Added Tax (VAT) Registration is mandatory for businesses trading or manufacturing goods in India. The State Government governs and collects VAT, and hence, State Government in India has different rules applicable for their concerned State based on the type of goods manufactured or sold which makes VAT regulations unique to each state. VAT is a multi-stage tax which allows ‘Input tax credit (ITC)’ on tax at an earlier stage, which can be then appropriated against VAT liability on subsequent sale. Hence, VAT is ultimately borne by the consumer itself.
Sales Tax Registration is mandatory if the annual turnover of the business crosses Rs. 5 lakhs in many states, though some states have raised this threshold limit to Rs. 10 lakhs. When registered for VAT, the manufacturer or trader is allotted with a unique 11 digit number known as the TIN Number for the business.
APPLICABILITY OF REGISTRATION
- Roadside Motor Transport Establishments
- News paper establishments
- Medical Institutions
- Private Educational Institutions
In some states the minimum employees required is 20 or more. Also, few State Governments have not extended the scheme to include Medical & Educational Institutions.
- Copy of PAN Card
- Copy of Aadhaar Card/Voter’s identity card
- Passport sized photographs
IN CASE OF ENTITY
- PAN Card copy of company
- Copy of Property papers (for owned property)
- Rental agreement copy (for rented property)
- MOA/AOA (company)
- Incorporation Certificate (company)
- Copy of Partnership Deed (Partnership)
- Electricity/Water/Telephone bill of business address.
- PAN cards, identity and address proofs of the proprietor/partners/directors needs to be submitted. Private limited companies must submit the MOA and AOA, Form 18, Form 32 and the Incorporation Certificate, while Partnership firms must submit the Partnership Agreement.
- The rental agreement for the business address, if rented, with the electricity bill.
- The application will be then processed by the concerned department involving a physical inspection. After approval, the Taxpayer Identification Number (TIN), an 11-digit number, will be issued along with a certificate to the concerned person.