A value-added tax (VAT) or general sales tax (GST) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts and retains the rest for themselves to offset the taxes previously paid on the inputs.

A VAT is like a sales tax where only the end consumer is taxed. It differs from the sales tax that with the sales tax, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, on the other hand, collections, remittances to the government, and credits for taxes that are already paid occur each time a business in the supply chain purchases products.

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). 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.

VAT application

Based on the State in which you propose to conduct the business or in which it is situated, We can help you understand the process, prepare the application and apply for VAT Registraiton.

Application processing

Once the application is ready the same could be submitted with the department in the required format. Officials  from the tax department shall verify the supporting and the particulars, thereafter  finally process  the same.

VAT  registration

Once the Application processing is complete, the Tax depatment shall issue the Vat Registration for your business in form of a 11 digit unique number, which will serve as the VAT/TIN/CST Identity for your business.

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