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Value added tax is a consumption tax which is levied at each stage of production starting from raw material s to final product.VAT is levied at the value additions at the different stages of production .The basic reason for the introduction of VAT is to arrest the increasing smuggling and cheating, which were resultants of high sales tax and tariffs.
Every dealer must apply for vat registration if :
the dealer turnover in the year preceding the commencement of this act exceeded the taxable quantum;
or the dealer turnover in the current year exceeds the taxable quantum;
or regardless of the taxable quantum the some dealers are also like to apply for registration if they make any interstate sale.
Business Query Form
A dealer who is required to apply for registration shall make an application for registration to the commissioner in form DVAT-04 within a period of thirty days from the date of his becoming liable to pay tax under the act and shall also pay the filing fee. Some documents are also required to be attached along with the application like deposit receipt, proof of principal place of business, proof of identification of authorized signatory etc. The application for registration is to be required to be signed by authorized signatory.
The VAT registration services are provided at various cities of India, so that the dealers will not face any kind of difficulty in registration. Though all the states are independent in the implementation of VAT but usually follow the same procedure .As VAT is an important source of revenue for states ,So more and more states are following VAT.