Value Added Tax (VAT) Information

Value Added Tax (VAT) Information

Value Added Tax (VAT)

Value Added Tax (VAT) is a special type of indirect tax where a sum of money is levied at a specific stage in the sale of a product or service. It's a multi-point sales tax with a set-off for tax paid on purchases. VAT essentially taxes the value added to the product, and the ultimate burden of the tax is borne by the consumer of goods.

Currently, there is no proposed Central VAT as of 1st April 2003. Each state is drafting its separate Value Added Tax Act, and, as per the present position, every state will have a separate VAT Act with different provisions that may not correspond with each other.

All dealers with Central Sales Tax (CST) are required to seek mandatory registration under the new VAT Act. Existing registered dealers are required to fill out a FACT SHEET as notified by the department within a stipulated time, and they would not need to seek fresh registration.

There are two types of registration: VAT dealer registration and composition scheme dealer registration. Dealers opting for the composition scheme will not be able to charge tax on invoices and will pay a lump-sum fee as a composition amount. For retail traders, the expected turnover limit for the composition scheme is a maximum of Rs. 15 lakhs.

We assist our clients by providing them the facility to get registered under either of the two available types of registration.

If clients wish to register or have queries, they can upload and fill the required forms and send us the duly signed forms at

Navneet K Arora & Co LLP” is a leading Company Secretaries firm, founded by CS Navneet Arora, offering a comprehensive range of Legal, Secretarial, and Management Advisory Services. With a focus on Corporate Laws, Business Management, and Taxation, the firm has evolved into an LLP, led by a dedicated management team committed to excellence, innovation, and client satisfaction.

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