VAT Registration

VAT registration is required for any business that is into sales either by way of trading, manufacturing etc.  The units may to Proprietary, Partnership, Private Limited as the case.

What is TIN?

TIN stands for Taxpayer Identification Number. This term is used alternatively with VAT (Value Added Tax) number. [Note: TIN number is called VAT number when it used for intra state sales.]
“Tax Information Network” is an initiative made by Income Tax Department of India to make the process of collection, processing, accounting and monitoring of direct taxes completely online. Under this network, Govt. of India wants to have a single repository of all tax related information, that can be accessed from anywhere within the country. To access it, every dealer needs a TIN Number as a token of identification of the business being registered under VAT.

TIN has two key sub-systems:

1. Electronic Return Acceptance and Consolidation System (ERACS) 

Under this taxpayers get to access a web-based utility for upload of electronic returns of TDS, TCS and Annual Information Return (AIR) to the central system of TIN.

2. Online Tax Accounting System (OLTAS)

Here details about different TAX related information from various tax collecting branches across the country will be accessible.

So, a TIN is an an eleven digit number (where first 2 digits indicate State Code and 9 digits differ according to every state government). Business owners have to mention the TIN on all correspondence and VAT transactions.

Basically, every sending & receiving company in deal has to specify the TIN number on all their documents such as Invoice, Quotation, Sales Order etc.

2. Do I need TIN?

If you are a Manufacturer or Exporter or Dealer or a Trader based in India, you need to get TIN.
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:

The documents that are required to submit for company a are as below:

Documents Required:

1. Copy of PAN card of the company;
2. Certificate of Incorporation and Memorandum and Articles of Association;
3. Copy of PAN Card and Proof of place of residence of the directors; like electricity bill, telephone bill (two address proofs are required)
4. Copy of PAN card and address proof of the signatory to the application
5. Two latest passport size photograph of the authorized signatory;
6. Proof of ownership/tenancy/lease of the premises of the place from where business is being carried out (Office).
7. Details of all places of business including branches and go downs in the state of Maharashtra (If any); Board resolution for authorizing a person to sign documents and represent company for the purpose of VAT Registration;
8. A demand draft (DD) of Rs. 25,000/- and Rs. 5000/-
9. POA in favour of a person to file the documents and represent before the department for registration.
10. MICR code of the Bank Account of the company;
11. Copy of Cancelled Cheque;
12. Particulars of the other dealer who will provide the introduction for registration.
13. List of goods which are traded by the company

Documents required for Central Sales Tax Registration:

1. Two Photographs of the person signing the application;
2. Court fee stamp of Rs. 25/-
3. Memorandum and Articles of Association of the company;
4. List of item to be traded generally
5. List of items intended to be procured on Form C
6. BOD of director’s resolution to authorize a person to represent the company for the purpose of registration.
7. The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time

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

iv. 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

VAT registration is required for any business that is into sales either by way of trading, manufacturing etc.  The units may to Proprietary, Partnership, Private Limited as the case.