Sirs Can you please advice when a TIN and VAT # is needed for a Pvt Trading company which has been Incorporated around 2 months ago
Dear Sir,
TIN & VAT is required for any transaction involving purchase or sales locally where total amount of transaction during the year crosses Rs. 5 Lacs. Also it is mandatory form first transaction if you want to enter into any transaction involving interstate purchase, interstate sales, Import purchase or export sales.
TIN and VAt is needed when the company starts trading operation i.e. when it starts selling or purchases.
If the turnover is likely to be more than the threshold limit of Rs 5 Lakhs, you need to get registered for VAT and obtain TIN. If the turnover is between Rs. 2 Laksh to Rs. 15 Lakhs, you can opt for composition scheme. Otherwise, get your company registered asap.
VAT TIN number is mandatory only when you cross the minimum limit chargeable to Tax under that state.
