What is Value Added Tax (VAT)?
What is VAT?VAT or Value Added Tax is a type of tax that is charged by the Central Government on the sale of services and goods to the consumers. VAT is paid by the producers of services and goods, but it is finally imposed on the consumers who purchase the services and goods when they pay for it.
What is VAT registration?Registration of VAT is mandatory for all manufacturers who are solely involved in the production of goods and services. The registration process means listing the company with the Government as a corporation eligible for return of VAT. Sales tax and VAT are different, the former is charged only when the end user purchases the services or goods, whereas VAT is applicable at different stages of the production process, which is also known as a multipoint tax. According to the VAT registration Act, it’s mandatory for all business organizations to be registered for VAT payments. With the advent of Digital India, VAT registrations can be done online too and is proving to be a boon to business entrepreneurs as it’s convenient and time-effective.
What is VAT registration procedure?In India, the Income Tax credit system is used to asses and collect VAT. The value ranges from 4% to 12.5% for different categories of products and services. Following are the basic steps required for VAT registration -
- The application required for VAT registration must be filled completely with proper information and submitted to your local VAT office along with all the required documents
- Post submission of documents and application, the VAT office will conduct a thorough inspection of the premises. This will be done within 3 days of submission
- Following approval of inspection, a deposit fee will be have to be paid to the VAT office
- After paynment, a TIN number will be allotted and within a day the VAT certificate will be issued
Online procedure for registration
- Login to the official VAT website and click on the registration tab
- Fill in your relevant details and also attach scanned copies of essential documents
- The corporation may be allotted with a temporary VAT registration number
- After verification of your application and documents, a permanent VAT registration number will be assigned to your company
Income Tax Slab 2021-22
February 17, 2020
Income Tax Return Guide - Details You Should Know
November 07, 2016
Best Tax Saving Investment Options in 2022 (FY 2022-2023)
November 08, 2016
Subscribe to get the latest articles directly in your inbox
14 Best Investment Options In India
October 30, 2018
Short Term Investments: Top 11 Short Term Investment Options For 2022
November 08, 2016
Insurance vs Investment - Did You Get the Right Financial Plan?
November 05, 2018
Popular & Recent Articles
How to Plan for Retirement as Per your Age
"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale.
|BEWARE OF SPURIOUS PHONE CALLS AND FICTIOUS/FRAUDULENT OFFERS