The Value Added Tax (VAT, effective since April 2005), and the Central Sales Tax (CST) are two very significant taxes associated with any Indian company (generally with a turnover more than Rs. 5 Lac, in most of the States of India) concerned with state-level and inter-state business transactions in any economic sector. The VAT is supremely governed by the State Government, and is based mainly on the (annual) turnover of a trading company located in the specific State of India. On the other hand, CST is levied by the Central Government on all inter-state business transactions (and not on the business transactions made within a State or the import/export of sales), but is collected by the State where from the goods/products are sold, irrespective of the turnover of the related company.
This web-page offers necessary information about CST registration, VAT registration or TIN registration in entire India, to help manufacturers, traders, dealers, and suppliers of goods or products in various economic fields. Here, it may also be noted that, VAT is levied at the local or State level, and is charged from the immediate buyer of any product at every stage of sale, and is then remitted to the concerned State Government by the seller of the product. In only some States of India, the VAT Exemption Threshold is kept at a turnover of Rs. 10 Lacs, as contrary to Rs. 5 Lac in the majority of Indian States. Again, the most common basic and standard rates of VAT (applicable only to tangible goods and products) are 4% and 12.5% in most of the Indian States. While the current CST rate in India is 3%.
In India, the Tax Payer's Identification Number (TIN) is used for identification of a company registered under VAT. Offered by the Commercial Tax Office of the concerned State, this TIN is a unique single 11-digit number elegant for distinguishing a trader in connection with all three taxes --- VAT, CST, and Service Tax.
Documents Required for CST & VAT RegistrationThe documents and fees required for VAT Registration/TIN Registration differ from State to State. The following are the most common documents required for cst & vat registration with the Commercial Tax Office of the concerned State of India:
- Flawlessly Completed VAT Application Form (Form-1)
- Applicable Fees (include VAT registration fee, fee based on the turnover of the applicant entity, and professional taxes depending on the type of entity, etc.)
- Copy of the Company Incorporation Certificate
- Professional Tax Registration Certificate (Form-2)
- Address Proofs of Business Premises
- Details of all Business Activities, along with a list of the main goods/products traded by the applicant entity
- ID Proof and Address Proof of the Business Owner or the Directors/Partners of the company
- PAN Card and Bank Account Number of the Business Owner or the Directors/Partners of the company
- Four to Six PP Sized Photographs of the Proprietor/Directors/Partners
- Copy of the Rental/Leasing Agreement of the Place of Business, if Applicable
- Partnership Deed or MOA & AOA of the company
- POA in favor of a person selected to file the documents and represent before the concerned Commercial Tax Office
- Copy of the Central Sales Tax Registration Certificate (Form-A), if Available
- Surety ranging from Rs. 25,000/- to 100,000/-, which can be refunded or adjusted against the tax liabilities of the company