Vat Registration

The VAT registration service is one of ours significant ancillary services for companies and firms engaged in various economic fields in all across India, and the whole world. Our firm is a globally prominent full-service law firm of India, which has been expertly and responsibly delivering the full gamut of legal and supportive services to business, professional, and service entities in diverse economic sectors.

In ours this meticulously prepared web article, we are providing comprehensive and very informative material about the vat registration services, along with the entire procedure followed in India.

The Value Added Tax (VAT) system has been a very revolutionary and significant tax reform in most of the countries of the world after the global liberalization, which superseded the cascade effect of the traditional sales taxes. The methods and rates of VAT collection vary from country to country; the most popular methods for VAT assessment being --- the Tax Credit Method, the Subtraction Method, and the Addition Method.

This value added tax (VAT) is a form of consumption tax which takes into account indirectly and comprehensively all multiple sales taxes associated with a product/good/service, at any given stage of its transaction in the supply chain, by taxing only the Value Addition. The Value Added by a company to a product/service, at any stage existing in the supply chain, is the appreciable difference between the selling price charged and the grand total cost of all input materials with inclusion of all input taxes.

Value Added Tax Registration Procedure

In India, the method for vat assessment and collection used is the Tax Credit Method; and the basic rates of Indian VAT are 4% and 12.5% for different categories of products, goods, and services. The value added tax is basically related with the State Governments, and the Central or Federal Government facilitates proper and perfect levying and collection of VAT by the taxation department of these States. The vat registration procedure and requirements are described hereunder.

1. Professionals, businesspersons, companies, firms, and agencies which are involved at any stage in the entire supply chain of certain goods, products, or services, are mandatorily required to obtain vat registration certificate, so that they could issue tax invoices while making commercial transactions.
2. For vat registration relevant is the Commercial Tax Office of the concerned State.
3. The required application form and other documents, are the following:
   • Flawlessly completed VAT Application DVAT 4
   • Central Sales Tax (CST) Registration Certificate
   • Professional/Corporate Tax Registration
   • PAN and Bank Account Number of the Company/Business Owner
   • Details of Business Activities
   • MOA and AOA of the Company/Business Entity; or Partnership Deed
   • Copy of the Rental Agreement of the Business Place, if applicable
   • Copy of the Address Proof, and Personal ID of the Proprietor, Director, or Partner, along with Four PP size Photographs
4. After vat registration, the applicant is granted a unique Tax Payer's Identification Number (TIN), for the purpose of proper, perfect, and smooth VAT collection.