VAT/Sales Tax Registration Requirements
As you know there is tax for everything we buy or sell from and to the market or even using some resources and these tax are a part which is provided to the government. VAT is in general termed as Value Added Tax were a dealer pay for his/her purchase of raw materials and the end-consumer pays to the dealer.
There is a unique number provided to the sales tax / VAT registration called as Tax-payer Identification Number (TIN) or VAT registration Number or Sales tax registration number under the VAT act by the government.
In a business field there are two important action takes place as buying and selling and among them the buyers are the customers who pay tax along with the product or service price. Similarly the sellers also doing the tax pay in his business for the same valuable consideration. The percentage of VAT tax for the goods and services is different for each state also it will be fixed and imposed for each transaction for the sale of product. But the case of sales tax is quite different from VAT tax were the tax value is not a fixed one and it depends on the goods which are permitted for local as well as for inter-state.
You can proceed your VAT registration process through us for high quality service satisfaction and also after the registration process further maintenance is also provided by us. Feel better for obtaining a service through and more about VAT and its registration process is as follows.
When does VAT is required?
The annual turnover in business for the buying and selling process when crossing the value range of about Rs.10 lakhs are supposed to register with Sales tax or VAT. The process of registration in Sales tax or VAT is proceeded with respect to the state. When you are registered with VAT or Sales tax and it is only applicable for that particular state as per the VAT act. For the outside business transactions requires CST (Central Sales Tax).
How many times VAT is required?
For the first time, VAT is need to be paid when a commodity is produced/imported and sold. Successive sales are exempt, as are all exports
Now you have learned about the purpose of VAT and when it can be used for the business. Let us discuss the documents which are required for the VAT registration.
Required documents
From the side of directors & shareholders
- A Scanned copy of PAN Card of Partners/Directors/Proprietor
- A Scanned copy of either Voter’s ID/Passport/Driver’s License
- Need a scanned passport-sized photograph
- Need a rental agreement/sale deed of commercial space of the business
Documents of the business (IF any)
- Provide PAN Card of Company/Partnership
- Submit the Board Resolution, in case of company
- Company’s Incorporation Certificate or Partnership Agreement
- Need Memorandum & Articles of Association of the company
VAT Registration Process
Step 1: You are required to send PAN cards, identity proof, address proofs and recent 4 passport-sized photographs of the authority persons who are called as the proprietor/partners/board of directors. Even the Private limited (PVT) companies must submit the company’s Memorandum and Articles of Association, necessary Forms number: 32 and18, company’s Certificate of Incorporation, if there is partners then submit the Partnership Agreement. At last the rental agreement for the company address, if suppose it is rented, along with the electricity bill.
Step 2: Within 2 working days our representative prepares the application is filed and submitted to the concerned authority through affiliates. You will be then provided with an acknowledgement in another 7 days.
Step 3: The application processing is evaluated by the department and may have a chance of any physical inspection. If once your application is approved by the department and then TIN number (11 digit number) along with a certificate will be issued immediately. The TIN and the certificate will be sent to you soon after receiving from the government department.