TIN, VAT, CST taxes

As soon as entrepreneurs start or plan to start a new business, they begin to hear these terms like VAT, TIN,CST. There are also legal requirements that the business must fulfill. These legalities are important at every step of setting up the business. VAT: Value Added Tax or VAT is a type of tax that is assessed on the increased value of product and service. It is levied on the sale of goods and services such that though it is paid by the producers to the government, the burden of tax ultimately falls on the consumers. TIN: Taxpayer Identification Number (TIN number) is also referred to as Value Added Tax (VAT) Number or CST Number. Allotted by the Commercial Tax Department of respective state governments, this eleven-digit number is mandatory to mention on all VAT related transactions. Therefore, registration for VAT or TIN is a must for any businesses dealing in the sale of goods or products, manufacturing, export, shop-keeping, dealing, e-commerce, etc. CST (Central Sales Tax) ) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.

Dear Teresa, here are few details you should know before applying for TIN - Taxpayer Identification Number/ VAT- Value Added Tax/ CST - Central Sales Tax.TIN number used to identify Dealers / Suppliers / Manufacturers and this is must for paying taxes of your services or company. TIN is also called VAT when it comes to local state sales and CST when it comes to other state sales.VAT and CST percentages are differ.Before you start making money, you should register your company and pay taxes to government. That is this all about.Good luck with sales.