VAT

A value-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 the value added to 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 the Memorandum and 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 of property tax of Municipal Corporation, copy of latest
paid electricity bill in the name of 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 License is NOT ALLOWED, in case of the Ration Card in
the name of 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 with the builder or any other relevant documents-
Copy of the Leave and License Agreement plus the Society
maintenance Receipt and the Light bill Of that premise. Light bill
should NOT be in the name of the 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 NASHIK
10) 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 then apply for the 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 the attachment)
13) Letter of Authority in favor of the consultant in Form no. 708 and From
no. 709 ( both in two copies) ( see the attachment)
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 Required
Below Documents And Information To Be Submitted

1st Applicant Information/Documents Required
1) Colour Photo
2) Pan card (Self Attested)
3) Address Proof-Any one:(voter Card/Driving License/Passport/Bank
Statement/Bsnl Tel Bill)
4) Mobile Number
5) Educational Qualification Example:Mba Or Msc Or B.Com or Bsc
Etc.
6) Place Of Birth Example : Delhi, Mumbai Etc..
7) Email Id
8) Digital Signature Application
2nd Applicant Information/Documents Required
1) Colour Photo
2) 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 Number
5) Educational Qualification Example: Mba Or Msc Or B.Com or Bsc
Etc.
6) Place Of Birth Example : Delhi, Mumbai Etc..
7) Email Id
8) Digital Signature Application
Company 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 Owner

Documents 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 1000 Click Here To 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 9500
8. If Company Name Approved We Have To Follow From Below Point
No 4
9.
10. AFTER NAME APPROVAL OF COMPANY REMAINING
BALANCE(Rs-10000/-) TO BE PAID FOR PROCESSING OF BELOW
WORK
11. THE BELOW FORMS AS PER COMPANIES ACT 2013
12. 4) FORM INC 7 (APPLICATION FOR INCORPORATION OF
COMPANY WITH TEMPORARY OFFICE ADDRESS REGISTRATION)
13. NOTE:INCASE REGISTERED OFFICE PREMISES ARE
TEMPORARY
14. 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 4800
18. Efiling Stamp Duty For - Punjab, Kerala State Govt Fee Rs-10000
19. Efiling Stamp Duty For - Aandhra Pradesh, Karnataka,
Madhyapradesh, Rajasthan, Gujarath,ChattisGarh, Govt Fee Rs 1520
20. 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 States Govt Fee
Rs-1520 or Less
21. 8) MOA
22. 9) AOA
23. 10) Incorporation Certificate (Approval may take min 1 day & Max
Time Sub. ROC approval )
24. 11) Company Pan Govt Fee Rs 105
25. 12) Company Tan Govt Fee Rs 70
26. 13) ALL ABOVE -- FROM 1 TO 12 APPROVED DOCUMENTS
WILL BE SENT SOFT (EMAIL) AND COURIER (HARD COPIES) TO
YOUR REGISTERED OFFICE ADDRESS
27. 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/-