2013-05-10 00:00:00TaxesEnglishRegistering for VAT is important for any trading or manufacturing small business. Learn more about VAT and the registration process.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/VAT1.pnghttps://quickbooks.intuit.com/in/resources/taxes/how-to-register-for-vat-in-india/How To Register For VAT in India

How To Register For VAT in India

1 min read

We have told you about How to Apply for Registration Certificate for Shops & Establishments, TAN – Who needs it & How to Obtain it and How To Register for Profession Tax in our earlier blogs. In this blog, we will tell you about VAT and how to register for it.

What is VAT?

Introduced to replace the Sales Tax, VAT is a multi-point levy on each of the entities in the supply chain 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.


Who is liable to register for VAT?

Any trading or manufacturing business, whether a sole proprietorship or a partnership firm or a private limited company, that sells its products is liable to be registered for VAT.

What is the procedure of VAT registration?

1. Submit an application for VAT in Form 1 along with the following documents to the local VAT office:

  • Central Sales Tax registration certificate(Form A)
  • Professional tax registration certificate(Form 2)
  • Copy of important documents such as the address proof, ID proof of the Proprietor/Partner/Director
  • Four PP size photographs of the Proprietor/Partner/Director
  • PAN No. & Bank Account No of the Proprietor/Partner/Director
  • Copy of the rental agreement of the business place
  • Details of business activities
  • Partnership deed (in case of a partnership firm)
  • Memorandum of Association and Articles of Association (in case of a Private Limited company)

2. The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time.

3. Once the inspection is over, you will have to pay a specified fee to the local office for your VAT registration.

4. On payment of the fee, a TIN number will be allotted to you for your business and you will also be given the VAT registration Certificate.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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