VAT-TIN Registration Bangalore
Welcome to TaxadvisorIndia, one of leading VAT registration consultant in Bangalore. Now you can get VAT-TIN registration online/offline in Bangalore, Karnataka. We are committed to providing VAT registration in shortest possible time through our dedicated office for VAT-TIN registration in Bangalore.
TaxAdvisorIndia.com is a leading VAT registration office in Bangalore, that is specialized in online tax registration services in India such as Value Added Tax (VAT) tax registration or file tax returns.
Value Added Tax (VAT) is a mandatory requirement for companies engaged in trading or manufacture of goods in India. Rules prescribing registration requirement varies from State to State. In certain States, it has been made optional depends on the company turnover. It is synonymous with CST Registration and TIN Registration. VAT is borne by the consumer.
Important Points on VAT Registration
- In Delhi, the VAT Registration is optional until 20 Lakhs of turnover
- In Maharashtra & Karnataka, the registration is optional until 10 Lakhs of turnover
- In the case of CST, there is no exemption as such and it is mandatory to have the CST number before a dealer enters into an Inter State Sale.
- In most of the states, the registration is an online procedure; however, the department liaisoning is still necessary for issuance of TIN number
- Inspector visit is still necessary, however, in some states, the pre-registration visits have been suspended but are done once the registration is done.
VAT Registration Highlights
- Value Added Tax
- End Consumer bears VAT
- VAT / TIN / CST are the same
- State-Level Tax
- VAT Due Dates
- NO VAT on Exports
VAT Registration Procedure Bangalore
TaxAdvisorIndia.com can obtain VAT/TIN/CST/Sales Tax Registration in 14 to 20 days, subject to Government processing time.
- VAT Application
- Application Processing
VAT Forms to be filled
- VAT Form 1
- VAT form 4 for Partnership (along with Form 1)
- VAT form 3 for additional Places of Business (along with Form 1)
DOCUMENTS REQUIRED FOR KARNATAKA VAT REGISTRATION
|Proprietor||Company / Partnership Firm / LLP|
VAT = Output Tax – Input Tax
Output Tax is the percentage of selling price received by the seller on the selling of his final product.
Input Tax is the percentage of cost price paid by a buyer for raw materials required to produce his final goods or services.
Suppose Vinod is a carpenter who bought wood for Rs.1500 and paid an input tax of 10% = Rs.150
Vinod made a wooden table out of the purchased wood and sold it for Rs.2500. On this he collected an output tax of 10% on the selling price = 10% of 2500 = Rs.250
So, final VAT payable comes out to be Output Tax – Input Tax = Rs.250-Rs.150 = Rs.100[/toggle] [toggle title=”Why VAT?” open=”no”][/toggle] [toggle title=”What is VAT Number?” open=”no”]11 digit number followed by V, to indicate VAT TIN (or by C to indicate CST TIN). First two digits identify the state where the registration is done, e.g. 29 indicates the State of Karnataka. The system was introduced with effect from 2006-04-01.[/toggle] [toggle title=”How is VAT different from Sales Tax?” open=”no”]Unlike VAT, sales tax is levied on the total value of goods and services purchased. Characteristics. VAT is an indirect tax that is imposed on each stage of production of an item. It is reflected in the final price of an item, which is usually more than its cost of production.[/toggle] [toggle title=”Who is to be covered by VAT?” open=”no”]All business transactions carried on within a State by individuals, partnerships, Companies, etc. will be covered by VAT.[/toggle] [toggle title=”Who will not be covered by VAT?” open=”no”]VAT will not cover small businesses with sales below a certain limit. In Karnataka, the limit is 10 lakhs or below.[/toggle] [toggle title=”What are the tax rates under VAT?” open=”no”][/toggle] [toggle title=”What is output Tax?” open=”no”]-Output tax is tax charged on sales.
-Output tax is available on all sales either to registered dealers or unregistered dealers.
-Output tax can be on local sale or on Central Sales.[/toggle] [toggle title=”What is Input Tax?” open=”no”]-It is tax charged on purchases.
-Input tax is available only on purchase from registered dealers or unregistered dealers.
-Input of local purchases only available[/toggle] [toggle title=”Can I always claim credit for my input tax?” open=”no”]You can claim a credit for your input tax but not under following circumstances:
a. All automobiles including commercial vehicles/two wheelers/three wheelers required to be registered under the Motor Vehicles Act 1988 and including spare parts for the repair and maintenance thereof; unless you are in the business of dealing in these goods.
b. Fuels used for automobiles or used for captive power generation or used for power plants.
c. Air conditioning units other than used in plant and laboratory, restaurants or eating establishments, unless you are in the business of dealing in these goods.
d. Any goods purchased and used for personal consumption.
e. Any goods purchased and provided free of charge as gifts otherwise than by way of business practice.
f. Any goods purchased and accounted for in the business but utilized for the purpose of providing facilities to employees including any residential accommodation.
g. Crude oil used for conversion/refining into petroleum products.
h. Natural gas and coal used for power generation.\
i. Any input used in construction or maintenance of any buildings including factory or office buildings, unless you are in the business of executing works contracts.
j. Earth moving equipment such as bulldozers, JCB’s and porcelain etc., and parts and accessories, therefore, unless you are in the business of dealing in these goods.
k. Generators and Parts and accessories thereof used for the captive generation unless you are in the business of dealing in these goods.
The above list of goods is generally called ‘negative list’.[/toggle] [toggle title=”What is Gross Turnover?” open=”no”][/toggle] [toggle title=”What is Taxable Turnover?” open=”no”][/toggle] [toggle title=”What is composition scheme?” open=”no”][/toggle] [toggle title=”What is a tax period?” open=”no”]In India, this 1 year period starts from 1st April and ends on 31st March. This period in which the income is earned is known as the Financial Year or Fiscal Year. The income tax returns are filed and taxes for a company are usually paid in the next year after the end of the Financial Year.[/toggle] [toggle title=”Will multi-point tax lead to cascading effect?” open=”no”][/toggle] [toggle title=”What is the benefit of registration under VAT?” open=”no”]1. As compared to other taxes, there is a less chance of tax evasion. VAT minimizes tax evasion due to its catch-up effect.
2. VAT is easy to Administer & Transparent and Less Litigation,
2. Abolition of Statutory Forms,
3. VAT is based on value added not on total price. So, price does not increase as a result of VAT.
4. VAT has no Cascading(tax on tax) Effect,
5. VAT has Minimum Exemptions.[/toggle] [toggle title=”What are the issues if registration is not obtained?” open=”no”][/toggle] [toggle title=”How long does it take to obtain VAT registration?” open=”no”]TaxAdvisorIndia can obtain VAT/TIN/CST/Sales Tax Registration in 14 to 20 days, subject to Government processing time.[/toggle] [toggle title=”Will there be renewal of certificate?” open=”no”][/toggle] [/accordian]