What is the Difference Between VAT & CST?

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Is sales tax applicable to my business?
If you are selling any physical goods or product then sales tax applies to your business. The product could be a pen, paper, office stationery, laptops, notebooks, food items, and groceries. So for that matter, any item that you could touch and feel if you are selling such an item sales tax applies to your business.
What is the sales tax?
Sales tax is a tax that you pay to the government. Unlike income tax, this is not a tax amount that you pay from your pocket. You need to collect the tax amount from your customer and then pass it on to the government. For example, let's say you are selling an item for Rs.100 and assume 10 percent is a rate of sales tax in your state. So the total bill amount would be 100 rupees plus 10 rupees which is the tax amount. So the total bill amount would be a hundred ten rupees. Out of which hundred rupees for you and ten rupees is for the government. Hope that makes it clear.
Two kinds of sales tax:
1.VAT (Value Added Tax).
2. CST(Central Sales Tax).
VAT stands for value-added tax and CST means Central Sales Tax. So when is VAT applicable to you and when CST? Let's say you have a shop in Bangalore and your customer is also in Bangalore, or in Karnataka. So if you're selling your product within the state of Karnataka then you will charge VAT on your bill. However, if your customer is in some other state could be Andhrapradesh, could be Tamilnadu, or could be Uttar Pradesh. Then you need a central state sales tax. The rate of VAT varies from state to state similarly the rate of a central sales tax varies from product to product. Please remember that sales tax is mandatory and you need to charge your customers either VAT or CST. If not, you might end up paying sales tax from your own pocket and that too with the penalties which you don't want to do. So please note that you have to charge the sales tax and collect it from your customers.
What is a TIN number?
The TIN stands for our Tax Identification Number. TIN is a local term for the sales tax number even though TIN stands for tax identification number it does not apply to service tax. It only applies to sales tax. So TIN is just another local term for a sales tax number that's it.
How much does it cost to get a sales tax number?
It cost 5000 to 10000 rupees to get us sales tax registration done. In some states like Maharashtra, they made it compulsory to get a professional tax registration also when you're applying for a sales tax number. In some states, a security deposit is also asked for. So you would have to pay a security deposit of around five thousand rupees to twenty thousand or thirty thousand rupees depending on the state and this is a security deposit that's normally refundable at the end of three years. So in most cities in India, the cost of sales tax registration is around 5000 to 10000 rupees.
What are the documents required to get a sales tax number?
If you go to any tax consultant is gonna give you a big list of documents that you will find very hard to understand. Keep it simple. Just remember that
1.You need to submit IDs and address proof of your business.
2.You also need to submit ID and address proof of the individuals or partners involved in the business.
What do we mean by ID and address proof of the business?
Please note that a PAN card is mandatory for any tax registration. I'm not referring to your personal PAN card but I'm referring to the PAN card of the business. So for example, if yours is a partnership firm then you need to apply for a PAN card in the name of the Partnership Firm before you can apply for a sales tax registration. Similarly, if yours is an LLP or a private limited company you need to get a PAN card in the name of the LLP or a private limited company. Now I was telling you that you need a submit ID and address proof of the business. You also need to submit ID and address proof of individuals or partners involved in the business. Now, what do they mean by ID and address proof of the business? First ID proofs of the business. PAN card copy of the business if it's a partnership: a partnership agreement.
If yours is an LLP then a PAN card along with the LLP agreement and a Certificate of Incorporation.
If yours is a private limited company then again a PAN card plus certificate of incorporation and the MOA and AOA. So these could be considered as the ID proofs of the business.

[@ashishrchandekar9286]

thanks for telling before itself that its not for students looking for info.....saved my time

[@miraagephotography]

Very much clear & informative !!

[@mohammedkhalid4505]

Thank you for valuable information to TEAM VAKILSEARCH

[@vakilsearchonline]

+mohammed khalid Glad we could help!!

[@sunidhipal3469]

thanks fr the info. I want to know it's applied before obtaining import export code or after ?

[@lionheart5052]

A big thanks to Vakeelsearch team. I am starting a small business and need help in understanding what type of registration to go for.

[@raajay10]

Helpful video in understanding Sales tax , thank you

[@holycow786]

A very short & crisp detailing.
Found it very informative.

[@vakilsearchonline]

Thanks for your comment Venkatesh. Very glad that you found it informative.

[@anilbutola3981]

its very nice clip to get knowledge of cst and vat.

[@vakilsearchonline]

+anil Butola Glad we could help!! :)

[@Satprag]

Great video.

[@sridharvb4405]

Thanks for the valuable information, It was useful tips

[@satysheoran]

sir....I wanaa start business of tender coconut from gujarat to delhi/haryana.....wt document I suppose to have for transpoetation & selling of items

[@gemstri]

Is it mandatory to produce bank account details for TIN?

[@ishanvyas1856]

Also can you please advise me about which would be easier, starting a partnership firm or sole proprietorship?

[@krishnakumar-py9ou]

hey
do we neet a tax registration nom for my start up

[@aryanupadhyay2816]

Does an E Commerece website required VAT or CST

[@Jintojose555]

what all procedures should do to start a online selling business in famous online shopping sites like flipkart or amazon..

[@nirajmakwana9841]

SAME QUE. FOR CST ?

[@masteracademia2124]

Thank You very much for Information. Very Helpful

[@hargun786]

can one tin number use in two state

[@phogerman]

I am a wholesaler ,I am purchasing from another state ..What kind of registrations do i need?What kind of taxes should i pay?

[@swapnililkar5523]

excellent keep uploading

[@techyunboxing7986]

is there any deposit for karnataka

[@sidharthnegi7253]

Thank you. it's very helpful.

[@jagatjaiswal8657]

thanks for the lecture...nice

[@chinmay2970]

Thank you! This video was helpful..

[@AwesomeBhargav]

thank you for the info.. appreciable effort.. !!!

[@ameenayaqoobi7101]

hi . i sell immitation jewellery and accessories at home . now i want to increase my business online . for that on flipkar , snap deal they're asking for TAN/ TIN . CAN I also apply for TAN . and i stay in rent home so what id profes i need for applying for TAN . pls reply.

[@himanshumouryavlogs]

TIN Number only required

[@nirajmakwana9841]

IF SALES TAX MEANS VAT OR TIN IS NOT APPLICABLE FOR MY BUSINESS THEN CAN I SELL MY PRODUCT TO WORLD WIDE ??

[@harijac3384]

I want to get VAT and CST from tamilnadu could u pls help me to proceed further

[@ankitaggarwal5976]

I am staying at rented place in Bangalore and need to apply for sole prosperity on my name. I have question for documents needed. For business id i can show My own PAN card...correct? Secondly for Address proof : Can I give the rental agreement where I am staying right now with NOC provided by owner? Looking for the answers

[@myfarmmyhome3850]

Very nice and helpful video..Sir. :)

[@nazarmohd864]

hello,
I want to start a training institute at corporate level for this I want to apply for quality management certificates(say ISO 9001-2008).What is the procedure to Apply for ISO certificate in govt.

[@masteracademia2124]

I want to buy one firm from RAJKOT (GUJARAT).
Can you guide me How to change Firm's Name and How to get Proprietorship? Do I need to get NEW TIN?

[@HarshHudda]

amazing channel !

[@naveen90chowdary]

thank you very much sit this is very nice

[@vakilsearchonline]

Naveen Kumar Glad we could help.. :)

[@manjulachandra8127]

Very nice information. Can you please help me get VAT & CST certificate in Bangalore to start a online business.

[@bobbepallitirumalasrinivas1824]

Good useful to us.

[@NIGHTYWHOLESALEe]

tin number kya hai kise Lena chahiye

[@shareefumar7387]

Thanks for the nice information

[@vakilsearchonline]

Umar Shareef Thanks Umar. Glad we could help.. :)

[@zeelgems9374]

Thanks for this video,
You said that you have to pay sales tax for any item that you can touch and feel.
I want to draw your attention to this case of mine. I am trader and exporter of the cut and polished diamond and holding proprietorship firm in Surat. I have never paid/been paid sales tax for either buying or selling of the diamond. My CA also does not let me bother about this.
Can you please elaborate on this?
This is genouilly been asked for knowledge....

[@boardmsr]

well spoken

[@nikhilbali4881]

hello sir,
sir ma na online business karna chahata hu,toh vaha pa vo TIN,CST no. mang raha ha.
Mera pass TIN no. ha lakin CST no. nahi ha..
Toh sir btao mujha CST no. pana ka liya kya karu

[@jitglobaltechnology]

please contact me [phone]

[@candid_paras2653]

Hi, could you please assist us to understand that under sole proprietorship for e-retail business, is CST required or TIN? We are from UP.

[@finxsolconsultants8682]

Hi paras, u need TIN no for selling anything which is taxable. B it online or retail. of course there is a minimum exemption limit to it.

[@finxsolconsultants8682]

we can help u with TIN no CST no registration. v specialise in Ecommerce accounting and tax. do call us on [phone]. Financial eXpert Solutions

[@candid_paras2653]

Hi....m looking for Gurgaon (haryana) registration

[@finxsolconsultants8682]

+Paras M Das v cover Delhi NCR and whole of India. our office is based in Karol bagh. pls feel free to call us at 8010407053

[@gyanganga6257]

i wants to take tin no for distributor of herbal products ramdev...like company ,,,so what i fill in product detail in registration form

[@jitglobaltechnology]

please contact me [phone]

[@umarbuneri3435]

Thank you so much

[@vajpayeevishal]

Hi Team VS..good video very informative. However I have 2 questions :-
1) Can an individual get a tin no. or it has to be a registered entity always ?
2) and what is better suggested ... individual availing a TIN (if allowed) v/s registered entity ?

[@sureshsehgal7077]

+Vishal Vajpayee For Getting TIN+ VAT+CST Registration in Delhi, Call us @ [phone].
Charges: 2500/- only, Get ur TIN number in just one day.

[@vinodmishra9657]

anaj veypari ko kitna vat dena hoga

[@ajaykumarmourya7368]

Thanks buddy !! :)

[@HarshaVardhini]

Is shop act license needed to get VAT?

[@GSTAPPLYCOM]

+Harsha Vardhini
contact FOR
TIN/CST/VAT number only 3000 in delhi
sales tax registration
current account open
return filling 500
7827804617

[@madhu9849]

what is tot

[@purushotamjha2984]

sir ho can i get vat no.???/ i want to start bussnes in amazon

[@sureshsehgal7077]

+purushotam jha For Getting TIN+ VAT+CST Registration in Delhi, Call us @ [phone].
Charges: 2500/- only, Get ur TIN number in just one day.

[@purushotamjha2984]

+LAW FIRM ok

[@sushmasingh2511]

Suresh Sehgal kitma charge Karen he aap CST or VAT no.ka govt fees and yr fees

[@nazarmohd864]

waiting for your earliest reply

[@vinodchauhan1542]

vinod

[@attilac.langba6705]

This video made me sleepy.

[@hargun786]

can one tin number use for two business