Dear Setty ji,
Registration under VAT of dealers is compulsory whose gross annual turnover is above Rs. 5lakh. VAT registration is required for any business that is into sales either by way of trading, manufacturing, whether individuals, partnerships, Companies, or other forms of businesses.
This is to be applied with the local Sales Tax Department in the prescribed forms along with specified fees and necessary documents. On completion of the formalities, a Tax Identification Number (TIN) is granted.
Some few points for your consideration -
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After VAT registration you get your TIN No.
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Tax invoices can be issued to other parties, as without TIN No. it is not possible.
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Get the benefit of input tax credit i.e. The difference between purchase tax and output tax, which will be set-off against the net tax payable if your sales tax arises in transaction.
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The tax status of your business can be seen on vat websites by just putting your TIN number wherein you get all the details.
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Taxability of a registered dealer is lower than an unregistered dealer.
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Increases credibility as some businesses prefer dealing with suppliers that are VAT-registered.
If any further clarification are required please let me know .....................
Thanks
Shankar Singh