The tax levied/charged on selling any goods is called Value Added Tax - tax which belongs to production & supply.
One important thing you need to know that VAT rules can differ from state to state. DVAT – which is for Delhi, APVAT – this is for Andhra Pradesh. Registration is mandatory if you are selling goods within the city and your turnover in the current financial year exceeds INR 20 Lakhs (INR 10 Lakh in other states as per the rules applicable in those states).
CST or Central Sales Tax is similar to value added services – the only difference being that VAT is levied on the sale of goods within the state, while CST is applicable in case of inter-state sale of goods. VAT application form itself having CST service details. ie., you can register for CST also from Value Added form.
Following documents are required:
To file an online application, you need to submit form DVAT-4 along with the scanned copy of prescribed documents and registration fee. Once approved, a TIN number will be allotted to you for your business.
Yes, it does! A government official from the local office is likely to inspect your business premises within a period of 15-30 days from the date of filing. Post this, a unique 11-digit number will be provided and which will act as VAT/TIN/CST No for your business.
For Sales Tax Registration, the business must be registered to a commercial space that pays electricity and other charges at commercial rates.
The Taxpayer Identification Number (TIN) is an 11-digit number which is issued after the approvals and inspection. Processing time takes from 10 to up to 25 working days. A Value Added Certificate is also issued from the department on personal visit.