How to register for Sales Tax / VAT in India

Recently, we got into reselling products in line with our consulting work, and also developed a couple of new products. But in order to sell products within India, we need to register for a Sales Tax or VAT (Value-Added Tax) number. This process is pretty straightforward:

1. Locate the office of the Central Sales Tax Office in your city. Being in Mumbai, a simple Google search turned up the location of the office at Mazgaon - http://salestax.maharashtra.gov.in/communicationcenter/contactusShow.php
2. Approach either the Public Relations Officer's desk there, or go directly to the Registration Department and collect the forms.
3. We needed the following supporting documentation along with the form:
• Company's PAN Card
• Director's PAN Card copy
• Two proofs of Director's residence - I used my passport and a phone bill
• Two proofs of place of business - we used our Leave & License agreement, and the electricity bill
4. The form is pretty straightforward to fill, and you need to ask for the one related to Voluntary Registration (VRS). You will need a Sales Tax Professional to sign on the form, and the Mazgaon building also houses the central office of the Association of Sales Tax Professionals, so finding one shouldn't be all that difficult.
   
5. It cost us Rs. 5000 as fees for VRS, and nothing under-the-table
6. The Sales Tax or VAT number is sent across by post in about a week's time

The main thing to keep in mind is that VAT returns need to be filed every quarter, and you will need to get a qualified CA who is capable of auditing and signing-off on VAT returns. My current CA has expressed his reluctance to process our VAT returns, so we are on the lookout now for someone who can do this.