Value Added Tax (VAT) Registration or TIN 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. 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). IndiaFilings can help you obtain VAT or TIN Registration.
Those entities have VAT or TIN Registration must then file VAT returns on time to avoid penalty. VAT is implemented by the State Governments. Hence, the VAT return due date and VAT payment due date differs from state to state. VAT returns are mostly due monthly, quarterly or annually. IndiaFilings can help you file e file your VAT return online. Our VAT experts can help you compute your VAT payments and e file the VAT return and keep you in compliance with VAT regulations.
MORE DETAILS ABOUT VAT RETURN FILING PROVISIONS IN INDIA:
VAT is value added tax, a tax levied on the sale of goods in India. Each State in India has unique VAT Regulation and different tax rates are applicable for different types of products. Therefore the VAT Tax Rate and Exemptions will be unique to each State and type of goods sold.
VAT is ultimately borne by the end consumer. At each stage, the person purchasing the goods must pay VAT and is allowed to set-off the VAT paid against the VAT liability on subsequent sale. Thereby making the end consumer pay the VAT.
The VAT rate will depend on the type of goods being sold and the State in which the goods is being sold. Therefore, it would be best to check with the local Sales Tax Office for the appropriate tax rate applicable for the goods to be sold.
VAT Registration is a State level registration for paying VAT, which is mandatory for manufactures and traders having an annual turnover of more than Rs.5 lakhs in most states (Rs.10 lakhs in some states). VAT Registration gives the manufacturer or trader a unique 11 digit number that would be required for subsequent VAT Compliance, VAT Filing and other matters incidental to VAT or Sales Tax or Central Sales Tax.
TIN stands for Tax-Payer Identification Number, a registration that is the same as VAT registration or CST Registration. TIN Registration provides the manufacturer or trader with a unique 11 digit number that is the same as VAT Registration Number. Therefore, VAT Registration, TIN Registration and CST Registration are one and the same.
CST is Central Sales Tax. Dealer purchasing or selling goods from or to outside one state is required to get CST registration.
VAT Registration is mandatory for manufactures and traders having an annual turnover of more than Rs.5 lakhs in most states (Rs.10 lakhs in some states).
To obtain VAT Registration, a copy of PAN Card, proof of address of business, constitution of the business [Partnership deed, Incorporation Certificate, etc.,] and proof of identity of the promoters is required. In addition, security deposit or surety or reference maybe required to obtain VAT Registration based on the State in which the business operates. Please contact a IndiaFilings Representative to know the requirements for your State.
VAT Registration is issued by the State Government. Therefore, based on the State, the processing time for obtaining VAT Registration will differ. In general, VAT Registration can be obtained in 15 – 20 working days.
VAT payments can be made at specified branches of designated banks. The list of designated banks can be obtained from the Central Excise or Sales Tax office.
VAT payments must be deposited by Proprietary Firms, LLPs and Partnership Firms quarterly. Other entities are required to make VAT payment monthly.
VAT returns are to be filed on the 20th of every month. The previous months VAT information must be filed on the 20th of every month.
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This article is written by: ACS Prince Kunal
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