If you are residing in
Gurgaon & you are into ecommerce business or a trader or manufacture, an
entrepreneur or an aspiring person who wants to sell online, then you must have
listened to this word “VAT Registration”. Is it really required? Is it beneficial
or a nightmare??
What is the procedure of VAT Registration and if I
am residing in Gurgaon, what are the documents required? So many questions….
So, here we are, Sharma & Associates, to sort
out your queries and concerns.
In this blog we’ll try to answer all your queries related to Vat
Registration.
Now, what exactly is this VAT?
VAT is “Value Added
Tax” or the Sales Tax that is to be paid to the government for any sale that is
made. Don’t be confused with Income Tax. As this tax is not deducted from your
pocket. This tax is paid to you by the customer and you pass it on to the
Government.
For Example you are selling online something
at ₹1000 and the Sales Tax in that state is 10%, then the total amount
levied on the customer will be ₹1100 of which ₹1000 you can keep and ₹100 goes to the
Government.
There are various taxation by the Government. VAT
is one of them.
If we talk about Sales Tax, It is of two types:
1. VAT (Value Added
Tax) - If the Goods are purchased and sold in the same state, then VAT is
applied on them and this goes to State Government.
2. CST (Central Sales
Tax) - If the goods are purchased or sold between two different states, then
CST is applied and this goes to central Government.
Anyone who sells anything,
be it goods, products or anything that can be felt or touched then you require
a VAT registration.
If your business is involved in purchasing goods that have been levied
with VAT, then it is advisable that you go for a registration or else you will
have no way to claim the VAT that goes from your pocket.
If you are dealing inter- state then it becomes mandatory for you to
have CST Registration if in case you do not want any hassles in the logistics.
What documents do
you require for a VAT Registration?
1. Incorporation
Certificate of Company (in case of Companies)
2. MoA & AoA (in
case of Companies)
3. Particulars of
people involved in the firm.
4. Address Proof of
Director – Lease / Rental Agreement
5. Company PAN Card /
Individual PAN card in case of Proprietorship
6. ID Proof of
Director – Pan Card / Election Card/ Passport/ Driving License
7. Rental Agreement/
Lease Agreement of Company / Proprietorship
8. In case of
Partnership firm- Partnership Deed
9. Passport size
Photograph of Director of the firm.
Information required from you
1. Name of the Dealer
2. Name of The Company
3. Postal Address
4. Telephone No
5. email Address
6. Details of
Director/ Managing Director/ Partners / Proprietor – Address, Ph. No , email ID
7. Details of
Authorized Signatory
8. PAN No of
Partnership firm
9. Date of
Commencement of Business
10. Date of Birth /
Date of Incorporation – (in case of Company)
11. Nature of Business
12. Commodities
description
13. Bank Account
details
14. List of Directors
(in case of Companies)
15. Details of the
Company / Individual – in case of Proprietorship
