VALUE ADDED TAX is an indirect tax, which is imposed on goods and service at each stage of production, starting from raw materials to final products. It avoids the double taxation of a direct tax. Any trading or manufacturing business, whether a sole proprietorship or a partnership firm or a private limited company, that sells its products is liable to be registered for VAT.

PROCEDURE

Submit an application for VAT in form 1 along with the following documents

• Central Sales Tax Certificate (form A).

• Professional tax registration certificate.(form 2)

• Copy of important documents such as the address proof , ID proof of the proprietorship/partner/director

• Four PP size photographs of the proprietorship/partner/Director

• PAN NO. & Bank Account no. of the proprietorship/partner/Director

• Copy of rental agreement of the business place

• Details of business activities

• Partnership deed (in case of partnership firm)

• Memorandum of Association and Article of Association (in case of a private limited company)

The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time.

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

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.