Sales Tax registration procedure in India


What is Sales Tax?

A sales tax is an assessment paid to an overseeing body for the offers of specific products and administrations. Generally, laws permit (or require) the vender to gather reserves for the tax from the buyer at the purpose of procurement. At the point when a tax on merchandise or administrations is paid to an administering body straightforwardly by a customer, it is generally called a use tax. Regularly laws accommodate the exclusion of specific merchandise or benefits from deals and utilize charge.


Sales Tax Registration:

  • VAT/ Sales Tax 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.
  • Every dealer who effects inter-state sale is required to register with State sales tax authorities who are empowered to grant registration under CST Act. CST arises in the state from which goods are sold.
  • When registered for VAT/CST/Sales tax, the manufacturer or trader is allotted a unique 11 digit number which will serve as the VAT Number / TIN Number / CST Number for the business.


Documents required for sales tax registration process:

  • You need to have a PAN Card Copy for the firm.
  • If you are a Private Limited Company  or a Partnership, you need the PAN Card of the Company or Partnership, respectively.
  • For Proprietorship, a personal PAN Card is sufficient.
  • Next, the Memorandum and Articles of Association of the Company or the Partnership Agreement if it is a Partnership.
  • Rental agreement for the office address, if it is rented.
  • The Address Proof, Identity Proof and PAN Card of the Directors / Partners / Proprietor. For the Address Proof, an Electricity Bill is sufficient and the for Identity Proof, the Passport / Driving License / Voter ID Card / Aadhar Card will suffice.
  • Finally, you need the Address Proof of the office address where the business operates, you can use the electricity bill or telephone bill for the office premises.