VAT-TIN Registration

NOTE: NOW THIS IS MERGED IN GST REGISTRATION

Value Added Tax (VAT) 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. Hence, it is important for any business involved in the manufacturing or trading of goods to check the VAT rates applicable for the goods they sell in their state and comply with the relevant regulation. 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). Therefore, manufactures or traders must be aware of the relevant state VAT regulation and obtain registration if required. 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.

Value Added Tax(VAT) Process

Step 1: VAT/TIN/CST Registration

You can obtain VAT/TIN/CST/Sales Tax Registration in 14 to 20 days, subject to Government processing time.

Step 2: VAT Application

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

Step 3: Application Processing

Once the application is prepared and submitted in the required format, Officials from the Tax Department will process the application and verify the particulars presented in the application.

Step 4: VAT Registration

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

Frequently Ask Questions (FAQs)

S.No.	Query
1	What is VAT?
	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.
2	Who has to pay VAT?
	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.
3	What is the VAT rate?
	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.
4	What is VAT registration?
	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.
5	What is TIN Registration?
	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.
6	What is CST Registration?
	CST is Central Sales Tax Registration and VAT Registration is now used as the CST Registration also. Therefore, once the manufacturer or dealers obtains VAT Registration, it can also be used as CST Registration or TIN Registration.
7	Who must obtain VAT 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).
8	What are the documents required for obtaining VAT Registration?
	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 Representative to know the requirements for your State.
9	How long does it take to obtain VAT registration?
	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.
10	How to pay VAT Tax?
	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.
11	When should VAT payments be deposited?
	VAT payments must be deposited by Proprietary Firms, LLPs and Partnership Firms quarterly. Other entities are required to make VAT payment monthly.
12	When should VAT Returns be filed?
	VAT returns are due on the 20th of every month. The previous months VAT information must be filed on the 20th of every month.

VAT Registration Highlights

Value Added Tax:

Value Added Tax (VAT) is a tax levied on the sales of goods in India. Manufactures and traders should obtain VAT Registration, if they have annual sales of more than Rs. 5 lakhs (Rs. 10 lakhs in some states).

End Consumer bears VAT:

All purchasers of goods in India must pay VAT. However, at each stage, the person purchasing the goods is allowed to set-off the VAT paid against the VAT liability on subsequent sale. Thereby making the end consumer pay the VAT.

VAT / TIN / CST are the Same:

VAT / TIN / CST utilize the same unique 11 digit number. Therefore, VAT / TIN / CST are the same and obtaining VAT Registration from the State authorities will suffice as the TIN or CST Registration also.

State Level Tax:

VAT is determined and collected by the State Governments. Therefore, each State has a different VAT Regulation based on the type of goods sold. Therefore, it is best for businesses to be aware of the State’s VAT Regulation applicable to them.

VAT Due Dates:

VAT Payments must be deposited in designated banks quarterly in case of Proprietary Firms, LLPs or Partnership Firms and monthly in the case of other type of business entities like Companies. VAT Returns must be filed monthly on the 20th.

NO VAT on Exports:

For goods exported from India, VAT is not applicable. Therefore, exporters of goods are not required to pay VAT. However, it is advisable for exporters to obtain VAT registration.

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