Back to Home

vat registration in india

VAT Registration in India

Posted By admin on December 24, 2013 No Comments

VAT REGISTRATION

MEANING :

VAT Registration in India then Value Added Tax (VAT) is a tax collected on the sale of your goods or services and relinquished on the purchasing of the goods or services that will be used in your business.

FOLLOWING ARE THE MAIN FEATURES OF VAT:

  • ü VAT is imposed on goods at import stage, manufacturing, wholesale and retails levels;
  • ü A uniform VAT rate of 5%-12% percent is applicable for both goods ;
  • ü VAT is payable at the time of supply of goods and issuance of invoice;
  • ü Tax returns are to be submitted on monthly or quarterly or half yearly basis as notified by the Government.
  • VAT Registration in India

FOLLOWING STEPS ARE REQUIRED TO BE PERFORMED FOR VAT Registration in India:

  • The application and documents is to be submitted to the local VAT office.
  • Local VAT Office shall inspect the premises within 3 days after submitting the application.
  • On payment of the Professional fee, TIN No. will be allotted and Certificate will be issued within a day.

DOCUMENTS REQUIRED FOR VAT REGISTRATION IN INDIA :

  • Copy of rental agreement of business place.
  • Copy of the address proof, ID proof of the Proprietor / Partner / Director.
  • 4 passport size photographs of Proprietor / Partner / Director.
  • PAN No. & Bank Account No.
  • Details of business activities.
  • Surety to the extent of Rs 1,00,000

TIME FRAME TO REGISTER VAT:

  • The average time to process applications is 4-5days.

RATES OF VAT:

  • The standard rate of VAT is 12.5%. There are reduced rates of 4% and 1%.
  • The minimum annual turnover for V.A.T. registration is INR 10 Lacs .but vat provision become immediate applicable as soon as business enter into any central purchase.
  • V.A.T. returns are filed on a monthly or quarterly basis.

ADVANTAGES OF

VAT REGISTRATION IN INDIA :

  • After VAT registration you get your TIN No.
  • Tax invoices can be issued to other parties, as without TIN No. it is not possible.
  • Get the benefit of input tax credit i.e. the difference between purchase tax and output tax, which will be set-off against the net tax payable if your sales tax arises in transaction.
  • The tax status of your business can be seen on vat websites by just putting your TIN number wherein you get all the details.
  • Taxability of a registered dealer is lower than an unregistered dealer.
  • Increases credibility as some businesses prefer dealing with suppliers that are VAT Registration in India.
Filed under Uncategorized Tagged with Tags:

Tags

about sec 25 company Advantage of Company Registrationn Advantage of setting up branch Office in India advantages of a sec 25 compay advantages of sec 25 company applicability of sec 259 on sec25 company applicability of sec 274 on sec25 company applicability of sec 275 on sec25 company Benefits of Company Formation in India can nri invest in section 25 companies? Company Formation Advantage and Disadvantage Company Formation advantages company Registration advantages Company set up benefits in India fdi requirements for sec 25 companies How to file Income tax return by Non Resident Indian How to Setup Branch office in India Listing of Advantages of Filling Taxes in India merits of sec 25 company Please find below the example of some cases where u need to submit positive aspects of a sec 25 company sec25 company's directorship requirements Sec 25 company disadvantage sec 25 company limitation seven key points of a section 25 company whar are the characteristic of a section 25 company? what are the advantages and disadvantages of a partnership firm? What are the benefits of sec 25 company? What are the disadvantage of Section 25 company what are the disadvantages of partnership? what are the fcra requirements for section 25 companies? what are the limitation of Section 25 company WHAT ARE THE MERITS OF SEC 25 COMPANY? what are the negative aspects of section 25 company What are the objective of setting up branch office in India What are the positive aspects of sec 25 company? what do you mean by mutual agency what is ngo? what is partnership deed? what is the difference between npo and trust? what is the difference between section 25 company and society? When We need to file Income tax Return Why NRI need to file Income tax return in India why we Wish to set up Branch office in India