1) if your turnover exceeds Rs 5 lakhs you would need VAT registration .
2) VAT registration is required if you are buying or selling taxable goods
2) Submit an application for VAT in Form 1 along with the following documents to the local VAT office:
• Central Sales Tax registration certificate(Form A)
• Professional tax registration certificate(Form 2)
• Copy of important documents such as the address proof, ID proof of the Proprietor
• Four PP size photographs of the Proprietor
• PAN No. & Bank Account No of the Proprietor
• Copy of the rental agreement of the business place
• Details of business activities
3) The authorities from the local VAT office will inspect the premises of where you conduct business within a prescribed time
4) Once the inspection is over, you will have to pay a specified fee to the local office for your VAT registration
5) On payment of the fee, a TIN number will be allotted to you for your business and you will also be given the VAT registration Certificate.
6) you would have to furnish surety in prescribed format for purpose of proper payment of value added tax to indemnify govt against loss that may be caused for failure to pay tax within prescribed period
7) Since you are collecting payment of the sale price of goods (in addition to handling of goods, as the case may be), they would be deemed to be dealer for the sales tax purposes.
8) if you own and store goods even before receiving of customer’s order you liable to pay sales tax in the same manner as any other dealer.
9) if you are acting as merely facilitator between seller and buyer you dont have to pay VAT . goods remain in the custody of the supplier, who delivers the goods and raises invoice on the customer as his own goods.