VAT - CST (TIN) Registration
Value Added Tax commonly known as VAT is an indirect tax levied by the State Governments only on tangible goods sold within the territorial jurisdiction of a particular state. Every State has enacted their separate VAT Act and framed rules under their VAT Act and it does not have uniform tax rate. The rate of taxation varies with situation and dependent upon the category of goods too.
Central Sales Tax commonly known as CST is an indirect tax levied by on tangible goods sold from one state to another state. CST is regulated by Central Sales Tax Act, 1956 and its chargeability is state specific. CST rates also varies with the situation and does not have uniform rate and also dependent upon category of goods too.
Registration under the VAT becomes mandatory for any business engaged in manufacturing or trading when his turnover exceeds rupees five lakhs (or increased limit of rupees ten or twenty lakhs in some state and union territory). Business entities, which has turnover not exceeding the limit prescribed in the VAT Act of States may also seek voluntary registration. Further registration under CST becomes mandatory for a manufacturer of trader when an inter-state sale is made. Application for registration under VAT and CST is filed with the Commercial Tax Department of the State, wherein the business is operating. Upon acceptance of application by the Commercial Tax Department, a unique eleven digit Taxpayer’s Identification Number (TIN) is allotted. TIN is required to be mentioned in every invoice of the business entity.
The procedure, documentation and fees vary upon state to state. However below is the list of common documents and information for making an application with the Commercial Tax Department for seeking VAT – CST (TIN) Registration:
Copyright 2016 - Designed by TratoIndia IT