Value Added Tax (VAT) is an alternative tax to sales tax that is mandatory for all trading and
manufacturing business in India. VAT is collected by different state governments and hence
is different in separate states, depending upon the goods produced or sold. Any manufacturer
or trader with annual turnover of more than Rs 5 lakhs per year needs to pay VAT. In certain
states, the minimum turnover is Rs. 10 lakhs.
TIN or Taxpayer Identification Number is a mandatory unique number for traders, manufacturers, exporters and dealers in India for tax purposes. It is allotted by the commercial tax department of each state and has to be mentioned in all VAT transactions and correspondence. The first 2 digit of the 11-digit unique number indicates the state code, whereas the remaining 9 digits differs with each state.
VAT/TIN is mandatory in India for doing manufacturing and trading business if the annual turnover is more than Rs. 5 lakhs.
VAT is levied by state and is hence different for separate states.
TAN is an 11-digit unique number, in which the first two digits indicates state code and the remaining 9 digits differs with each state.
Exporters are exempted from VAT payment to promote export of goods to different countries.
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