VAT

Avalue-added tax(VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on thevalue addedto a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.

The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax.

Do I need to register?

If your turnover (total sales) in the previous 12 months exceeds the compulsory registration threshold (currently 79,000), then yes you must register. Failure to do so can result in fines. Accounting software keeps an eye on this for you and warn you if you approach the threshold. Its important to note that this is on a rolling 12 months basis (ie, the last 12 months from any given point), not based on turnover in a calendar year.If you havent exceeded the threshold for compulsory registration you can still register voluntarily if it makes sense for you to do so.

How does VAT work?

If youre a VAT registered business then you are essentially an unpaid tax collector. You have to add VAT at the appropriate rate to everything you sell (usually at 20%). This additional income isnt yours youre collecting it on behalf of HMRC (HM Revenue & Customs). Every 3 months you need to pay over the VAT youve collected to HMRC.

When you buy items from another VAT registered business they have to charge you VAT. But you can claim this back.

So, lets assume that in a 3 month period you collect 1,000 in VAT from your customers. In the same period you also buy something from a supplier and youre charged 200 + VAT (Total: 240).The amount you have to give to HMRC is the VAT youve collected (often called Output VAT) minus the VAT youve paid out (Input VAT) . So in this example youll be handing over 960 (1000 minus 40).So should I register or not?

If you sell mainly to non-VAT registered businesses/people, then perhaps not.If you sell mainly to VAT registered businesses then you probably should.Even if you sell mainly to non-VAT registered business and decide not to register for VAT yourself, then do remember that if your turnover gets high enough (and we hope it will!) then youll be legally obliged to register.

Documents required for registration of a Company under Delhi VAT

1) Certified true copy of theMemorandumand Articles of Association of the company.( in case of a company only) ( also the Certificate of the Registration is required. In case of a PUBLIC Company- CERTIFICATE OF COMMENCEMENT is required)

2) Self-attested copies of Proof of permanent residential address of the Proprietor/Partners/Directors and also of the Authorized Signatory.At least 2 of the following documents must be submitted:copy of passport, copy of election photo identity card, copy of property card or latest receipt ofproperty taxof Municipal Corporation, copy of latest paid electricity billin the nameof the applicant

3) Self-attested copies each of PAN card copy self attested of all the Proprietor/Partners/Directors and the authorized signatory and also of the company-attested by the Proprietor/Partners/Directors.

4) Self-attested copies each of Proof of address and ID of the authorized signatory Licenseis NOT ALLOWED, in case of the Ration Cardin the nameof the Parents NOC shall submitted. also a NOC from the Landlord if the POB is Rented.

5) Self-attested copies each of two Proofs of place of business (for an owner, the case of Doing Business)Proof of ownership of premises viz. copy of property card or ownership deed or agreement withthe builderor any other relevant documents-Copy of the Leave andLicenseAgreement plus the Society maintenance Receipt and the Light bill Of that premise. Light bill should NOT bein the nameofthe Builder.

6) Cancelled Cheque and also the photocopy of the latest bank statement.

7) TWO recent passport size photograph of the applicant. ( All the Proprietor/Partners/Directors and the Authorized signatory.)

8) Challan in Form No. 210 (original) showing payment of registration fee at INR 5025/in case of voluntary RC and one of Rs. 25000/- for deposit.

9) One DD of Rs. 5025 /- and One Of Rs. 25000/- drawn on NATIONALIZED BANKS ONLY Drawn in favor of STATE BANK OF INDIA A/C MVAT , payable at NASHIK10) Profession Tax number of all the Proprietor/Partners/Directors and the Company.( in case of the company its PTRC- form-2A and PTEC-Form 2B)11) If the profession tax number is not yet taken thenapply forthe PT number and attach the photocopy of the PT application counter with the Form 101.12) Letter of Authority in Form no. 105 for appointing the Authorized signatory ( see theattachment)13) Letter of Authority in favor of the consultant in Form no. 708 and From no. 709 ( both in two copies) ( see theattachment)14) On the letter head of the Company resolution of appointing Authorized signatory to act in this regards.15) For CST registration manual form for application.16) All the above documents shall be presented in ORIGINAL at the time of the verification in front of the STO.

To Register Private Limited Company Minimum 2 Persons RequiredBelow Documents And Information To Be Submitted

1st Applicant Information/Documents Required1) Colour Photo2) Pan card (Self Attested)3) Address Proof-Any one:(voter Card/Driving License/Passport/Bank Statement/Bsnl Tel Bill)4) Mobile Number5) Educational Qualification Example:Mba Or Msc Or B.Com or Bsc Etc.6) Place Of Birth Example : Delhi, Mumbai Etc..7) Email Id8) Digital Signature Application2nd Applicant Information/Documents Required1) Colour Photo2) Pan card (Self Attested)3) Address Proof -Any one:(Ration Card/Adhar Card/Any Tell Bill/voter Card/Driving License/Passport/Bank Statement)4) Mobile Number5) Educational Qualification Example: Mba Or Msc Or B.Com or Bsc Etc.6) Place Of Birth Example : Delhi, Mumbai Etc..7) Email Id8) Digital Signature ApplicationCompany Information To Be Provided

1) Company Name (Select Unique Name For Fast Approval)2) Company Address (Full Address With Pincode)3) Activity of the Company (Main Objects Of Company Please Write Min 2 Lines Atleast)4) Office Address Electricity Bill And Rental Agreement / NOC From Building OwnerDocuments required for delhi vat registration for company

1. 1) FORM DIR-3 - Din (FOR 2 PERSONS) -Govt Fee 100(FOR ONE DIN)*2=RS 200- 2 Hours To Complete.2. 2) Digital signatures For 2 Directors -2* 1300= Rs 2600- 3 Days To Complete.3. 3) FORM INC - 1 (APPLICATION FOR NAME RESERVATION OF COMPANY) Company Name E-Filing - (Approval may take min 1 day & Max Time Sub. ROC approval)Govt Fee Rs 1000Click HereTo See Name Rules -4. Note 1: Select Unique Name For Fast Approval of Company( We Have 3 Chances To Reapply Company Name If The Given Name Is not Approved).5. Note 2: If the given Names is Not Approved Within 3 Chances again we can apply by Paying 1000 Rs with fresh names).6. 7. NOTE: TO PROCESS ABOVE SERVICES YOU NEED TO PAY INITIAL PAYMENT OF RS 95008. If Company Name Approved We Have To Follow From Below Point No 49. 10. AFTER NAME APPROVAL OF COMPANY REMAINING BALANCE(Rs-10000/-) TO BE PAID FOR PROCESSING OF BELOW WORK11. THE BELOW FORMS AS PER COMPANIES ACT 201312. 4) FORM INC 7 (APPLICATION FOR INCORPORATION OF COMPANY WITH TEMPORARY OFFICE ADDRESS REGISTRATION)13. NOTE:INCASE REGISTERED OFFICE PREMISES ARE TEMPORARY14. 5) FORM INC 22 (NOTICE OF SITUATION OF REGISTERED OFFICE OF THE COMPANY)15. 6) FORM INC 12 (PARTICULARS OF APPOINTMENT OF DIRECTORS)16. 7) FORM INC 21 (COMMENCEMENT OF BUSINESS AND DECLARATION OF REGISTERED OFFICE)17. For Filing Above(FORM INC 7, 12, 22 AND FORM INC 21(IF REQUIRED TO BE E FILED) -Govt fee 480018. Efiling Stamp Duty For - Punjab, Kerala StateGovt Fee Rs-1000019. Efiling Stamp Duty For - Aandhra Pradesh, Karnataka, Madhyapradesh, Rajasthan, Gujarath,ChattisGarh,Govt Fee Rs 152020. Efiling Stamp Duty For - Delhi, Maharshtra, Arunachal Pradesh,Himachal Pradesh, Tamilnadu, West Bengal,Uttarakhand, Asssam, Sikkim, Bihar, Ranchi, Meghalaya, Manipur, Mizoram, Nagaland, Jammu, Odisha, Goa, Chandigarh, Haryana,Chandigarh And Other StatesGovt Fee Rs-1520 or Less21. 8) MOA22. 9) AOA23. 10) Incorporation Certificate (Approval may take min 1 day & Max Time Sub. ROC approval )24. 11) Company Pan Govt Fee Rs 10525. 12) Company Tan Govt Fee Rs 7026. 13) ALL ABOVE -- FROM 1 TO 12 APPROVED DOCUMENTS WILL BE SENT SOFT (EMAIL) AND COURIER (HARD COPIES) TO YOUR REGISTERED OFFICE ADDRESS27. With All Above Pvt Ltd Registration Is Completed

How to Get Registered under Delhi VAT

For registering under Delhi VAT an application for Registration is to be made in Form DVAT-04 with the prescribed fee Copy of Memorandum and Articles. The following documentations are required: Copy of companys PAN card List of directors along with address and identity proof, like copy of passport etc 2 photographs of each directors Copy of Board Resolution in favor of authorized signatory Copy of PAN card and address proof of authorized signatory along with 2 photographs Copy of address proof in respect of principal in Delhi Copy of first sales / purchase bills along with copy of GRs to prove date of liability and validity otherwise we may go for voluntary registration only for Delhi VAT Copy of bank statement Bank Pay in Slip, one cancealed cheque Surety in form of registered dealer / security in form of Bank Guarantee a sum of Rs. 1 lac. Prescribed form DVAT-04 for Delhi VAT registration and Form -1 for CST registration, attached herewith Form -04.A security not exceeding Rs 1 lakh is to be submitted along with the application for registration. The security amount can be reduced by a maximum of Rs 50,000 if you can provide certain documents with your registration application. The reduction in the security amount allowed for various documents is as follows. Last paid electricity bill in your name, Rs 10,000; Last paid telephone bill in your name, Rs 5,000; A PAN number, Rs 10,000; A document as proof of ownership of principal place of business, Rs 30,000; A document as proof of ownership of residential property, Rs 20,000; and A notarized photocopy of the passport of proprietor/ managing partner or Managing Director, Rs. 10000/-