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  Ankit Jain
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Value Added Tax (VAT)

What is VAT?

Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods.
It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods. It is a consumption tax because it is borne ultimately by the final consumer. In India, it is the replacement of existing sales tax structure; the only difference being the manner of levy.

It is a multi-stage tax, levied only on value added at each stage in the chain of production of goods with the provision of a set-off for the tax paid at earlier stages in the chain. It is assumed that due to cross-checking in a multi-staged tax, tax evasion will be checked, resulting in higher revenues to the government. VAT being state level tax, is controlled and administered by State Government, through various states level laws, rules and regulations.

What is the procedure for registration under VAT?
 
A dealer who is required to apply for registration shall make an application for registration to the Commissioner in the prescribed form within a period of thirty days from the date of his becoming liable to pay tax under the Act. The local VAT office conducts an inspection of the premises within three days after submitting the application. After the inspection is being conducted, the relevant deposit fee is required to be paid. On payment of the professional fee deposit, the TIN No. will be allotted and Certificate will be issued within a day.

Documents required for VAT registration

The application for registration is typically required to be accompanied by the following documents:

  • Deposit receipt of prescribed amount towards fees for registration. Such deposit receipt is to be obtained from the appropriate treasury after payment of the fee amount. 
  • Copy of the constitution document e.g. Partnership deed for a partnership firm, Memorandum and Articles of Association for a company. 
  • Board Resolution authorizing the signatory to sign the application in case of company. 
  • Proof of identification of the authorized signatory e.g. voter identity card, passport, driving license. 
  • Proof of principal place of business e.g. rent receipt, lease agreement, electricity bill.

Who is required to sign the application for registration?

The Application for registration is required to be verified and signed by an authorized signatory. An authorized signatory for different categories of persons is: 

  • Proprietor, in case of proprietorship concern
  • Managing partner, in case of partnership firm and where there is no managing partner, by any of the partners. 
  • Managing Director or authorized signatory, in case of a company. 
  • Karta, in case of Hindu Undivided Family and authorized signatory.

How we may help you?

Our team has the hands on experience of obtaining VAT Registration for our clients. We can assist you in:

  • Filing the application form
  • Liaising with the authorities
  • Obtaining VAT Registration
  • Addressing any queries raised by the department.   

 

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