Information About Vat Registration
It is essential to understand the concept of VAT. What is Vat? This was introduced so that the sales tax can be replaced. To understand it more explicitly, it is essential to know on whom the VAT is levied. The Vat is levied on each entity in the supply chain. Therefore it is levied on multiple points. There is a provision as such which allows the ‘Input tax credit (ITC)’ on tax, however this is at the initial stage and it is later adjusted on the VAT liability. This is done when there is subsequent sale.
It is also essential to know who is liable to register for VAT. If a person is a trader or if a person is in the manufacturing business then they are liable to register for Vat. They can be either owning on a sole proprietorship basis or on a partnership basis, no matter whatever it is, whether it is a firm or a private limited company all of those who sell their products are liable to be registered for VAT.
Learn The Procedure Of Vat Registration?
It is essential for you to learn the procedure for the registration of the VAT.
The very first thing that you should do is to get the application for the Vat Registrationand submit it in Form 1 after filling it. Make sure to attach the required documents and then you can submit it at local VAT office.
The documents that you need to attach with the form are the Central Sales Tax registration certificate (Form A). You should also have to attach a copy of the Professional tax registration certificate (Form 2) and copy of other crucial documents which comprises of an address proof, and an ID proof.
If you are into a partnership, then you need to attach a copy of the partnership deed and a copy providing the details of the business should be attached along with it. If it is a Private Limited company then the Memorandum of Association and Articles of Association has to be attached along with the VAT application form.
The other essential information such as the PAN number, Bank account Number and four passport sized photographs also should be provided. Even the rental agreement of the business place should be provided.
Once the essential documents and details are provided the eligible authorities will inspect the business premises and ask you to pay a FEE for the VAT registration. Once you make the payment of the fee which is levied you would be allotted a TIN number for your business and also the VAT registration certificate will be issued.