{"id":4390,"date":"2018-05-24T03:35:23","date_gmt":"2018-05-23T22:05:23","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?page_id=4390"},"modified":"2018-06-13T13:54:06","modified_gmt":"2018-06-13T08:24:06","slug":"vat-registration","status":"publish","type":"page","link":"https:\/\/www.antworksmoney.com\/blog\/vat-registration\/","title":{"rendered":"VAT Registration"},"content":{"rendered":"

Value Added Tax (VAT) is a valid tax levied by the Central Government on the value added to a product or services before reaching to the final customers. VAT registration is mandatory and important for all traders or business those who are actively involved with manufacturing or even production of goods and services. VAT is similar to\u00a0Sales Tax\u00a0but it’s quite different from sales tax considering that it is collected once at the time of purchasing.<\/p>\n

Benefits of\u00a0VAT\u00a0Registration:<\/h2>\n

There are major advantages of VAT registration for your company:<\/p>\n

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  1. There will be a certain authenticity associated to your company as well as other entrepreneurs will be more comfortable in doing business with you. This is a surety on your part that yes legally you are a sorted company.<\/li>\n
  2. You can use \u2018Set \u2013 off\u2019 which basically the difference of the VAT given to your supplier and the VAT you receive from your customer. So in other words VAT for a particular product has to reach the Government only once. So if you have paid some VAT already you can deduct it from what your customer gave you.<\/li>\n
  3. A VAT registration is required when your business turnover is more than 5 lakh INR. So it gives your company appears well established and larger. This helps appeal to more entrepreneurs and in turn, help you expand.<\/li>\n
  4. You become eligible for VAT refunds meaning that you can claim the taxes you have paid in a European country if you have purchased any goods there.<\/li>\n
  5. You can easily see your VAT status or dealer status just by punching in your VAT number. Hence no hassles in going through all documents or receipts that when last VAT was paid.<\/li>\n<\/ol>\n

    VAT Registration Procedure:<\/h2>\n

    The basic steps are simple for VAT registration, but minor variations are there based on the state or city your business is located in:<\/p>\n

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    1. The application along with the documents need to be submitted to the functional local VAT office.<\/li>\n
    2. Local VAT Office shall conduct an inspection of the premises within three days of submitting the application, after inspection of the relevant deposit fee to be paid.<\/li>\n
    3. On payment of the Professional fee deposit, the\u00a0TIN\u00a0No. will be allotted and Certificate will be issued within a day.<\/li>\n<\/ol>\n

      Online VAT Registration Procedure:<\/strong><\/p>\n

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      1. Log on to your state VAT website and click on the registration tab.<\/li>\n
      2. Add information and attach documents as a request for your company.<\/li>\n
      3. You may be allocated a temporary VAT registration number.<\/li>\n
      4. Once the verification is done you will be allocated your Permanent VAT registration number.<\/li>\n
      5. You can check your VAT status online<\/li>\n<\/ol>\n

        VAT Registration Limit or Fees:<\/h2>\n

        Here is the simplistic idea of the VAT<\/a> <\/strong>registration limit and the fees required for the same:<\/p>\n