VAT/SALES TAX AND CST REGISTRATION

When you sell any goods in India, then a tax is charged on selling of those goods. This tax is called as Value Added Tax (VAT). VAT is also called as a multi-stage tax because VAT is charged only on value addition part of the goods at a different stage of production.

Therefore, VAT registration is mandatory if you are selling goods within a state of India and your turnover in a current financial year exceeds Rs. 20 lakh in India or 10 lakh in other states as per rules of the respective state because VAT rules are different for different states.

CST (Central Sales Tax) is similar to the VAT but the only difference is that CST is imposed on those goods which are sold outside the states.

Unlike VAT registration, CST registration is not dependent on turnover criteria. If you are selling your goods outside the state then you have to obtain CST registration in India.

Documents required for VAT/CST registration:

-Self attested PAN card copy.

-Two Photographs.

-Self attested copy of any one of the Identity Proof like, Passport, Voter ID & Aadhar Card

-Self attested copy of any one of the Address Proof like Bank Pass Book/Bank Statement, Telephone Landline Bill Mobile Bill & Electricity Bill

-Premises Address proof Electricity Bill, Telephone Bill, Mobile Bill & Gas Bill, AND Rent Agreement (If Rented) AND NOC for doing Business & for taking Registration

-A copy of Cancelled cheque

-Name of the proposed unit

-Objects of business for which registration is required

-Board Resolution for authorization of Service Tax Registration in case of comapny

-Private limited companies must also submit the Memorandum and Articles of Association, Form 7, Form DIR 12, Form INC 22 and Certificate of Incorporation -While Partnerships must submit the Partnership Agreement. -In addition, security deposit or surety or reference maybe required to obtain VAT Registration based on the State in which the business operates.