VAT Registration in India

Value Added Tax is collected by State governments for all the transactions which take place within the territory of that respective State. As a result, the payment of VAT differs in different States.

1. The first step towards e-filing of VAT is to locate the Sales Tax website of the respective State government. For this purpose, one can visit http://rajtax.gov.in/vatweb/vat/vatMain.jsp?viewPageNo=9. This is the Rajasthan Sales Tax website, but it provides links to the respective websites of the other States and Union Territories. One can locate the appropriate State and then select the link given adjacent to it.

2. In order to pay any tax online,a bank account with a net-banking facility is required. This means that not only should the bank be one which provides Internet Banking, but that the taxpayer should have an Internet banking account which includes an ID and a password. This can be acquired from your bank.

3. The first step is While the format of each website is different, they will all provide a link for New Registration on the homepage of the website. For the Delhi Sales Tax website (http://dvat.gov.in/website/home.html) this is located in the top left corner of the page.

4. The next step is to fill in all the information required in the registration form. The form will ask for a number of details such as TIN, PAN No, Name of the Firm, Address, E-mail ID and will require you to set a password for your new account. One may also read and accept the Terms and Conditions at this stage.

5. Once the above information is submitted, the webpage will then process and verify the information, following which it will display a message stating that your Registration or Sign-up has been successful. It is to be noted that the Registration/Sign-up is only to be done once, the first time one wishes to pay online. Steps 3 – 5 are NOT to be repeated for every payment.

6. Once Registration has been successfully completed, one can proceed to actual payment. For this, you can return to the homepage of the Sales Tax website. Then you can Log in using the password that you set at the time of registration as well as the TIN number as a Login ID.

7. Once Login is complete, there will be a link for e-payment. The E-payment link will then redirect the tax payer to another form which needs to be duly filled. A number of details such as Tax Period, Payment Period, Payment Quarter and the respective amounts have to be entered here. The tax payer will then have to select their bank from a list of banks provided on the website.

8. Once the above form has been duly filled and the bank with which the tax payer has an account has been selected, the webpage will then redirect to the Bank Portal of whichever bank was previously selected.

9. At the Bank Portal website, one can follow the standard procedure for Net-banking. The username and the password for net-banking are to be entered here. It is to be noted that the Net-Banking facilities, user ID and password are provided by Bank and not by the Sales Tax authorities- hence any problem at this stage should be redirected to the concerned bank.

10. Once the information is confirmed, the tax payer will receive an option to view the Challan details. The VAT form will be displayed, which can be printed, along with the CID (Challan Identification Number). This number is important and it is recommended that the CID be noted carefully.

11. Finally, the website will be redirected back to the State government Sales Tax portal, where one will receive a confirmation message of the payment being successful and the CID will also be displayed once again which should be noted.

12. Each time a new payment is to be made, steps 6 – 11 are to be repeated. Steps 3 – 5 are only for the FIRST online payment.

Author: This blog “VAT Registration in India” is written by  Ms. Sweta Pochiraju, student of National Law University-Delhi, a passionate blogger & intern at  Aapka Consultant.

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