Most of the ECommerce Startups in India want to sell their products on marketplaces like Amazon, Flipkart, Snapdeal etc. so today we guide you on "Step by Step Process to Register on Amazon as a Seller in India" so you can easily sell on Amazon.
Legal CheckList for Register on Amazon as a Seller.
a) VAT Registration for the Business. ( i.e is also called TIN Number).
b) ID and Address Proof of the Individual.
c) Current Bank Account on the name of Business.
d) PAN of the Individual.
Brief Info about VAT Registration :-
India has a complex sales tax framework which is levied at both the state and central level. Sales tax for goods sold within state is taxed as Value Added Tad (VAT) and inter-state sale of goods is charged Central Sales Tax (CST). With VAT/CST being applicable for the sale of goods or transfer of property for valuable consideration, it is important for businesses to know about the VAT/CST regime applicable to them and comply with the regulations. In this article we look at the basics of VAT CST Registration in India and the relevant rules and regulations:
Value Added Tax (VAT)VAT is a multi-point destination based system of taxation, where the tax is levied on value addition at each stage of the production / distribution chain and the ultimate VAT tax is borne by the consumer. VAT tax allows for the provisioning of “Input tax credit” on tax at earlier stages, which can be used to setoff VAT liability on subsequent sale. Therefore, the VAT liability is calculated by deducting all the Input Tax Credit (VAT tax paid) by the entity from the total amount of VAT collected from the sales of goods by that entity.
VAT tax at the State level is determined by the Empowered Committee of State Finance Ministers. In most states VAT is generally exempt or charged at 4% or 12.5% or higher based on the nature of goods sold and the state in which the transaction takes place. Goods of basic needs like animal feed, firewood, fresh milk, vegetables, unprocessed meat, unbranded salt, etc., have been exempt from the VAT regime in most state. VAT is charged at 4 or 5 percent for categories of goods like chemical fertilizers, drugs and medicines, iron/steel, IT products, sports goods, etc., Further, VAT is charged at 12.5% for goods like cosmetics, furniture, vehicles, watches, etc., As VAT tax is state specific it is important to know about the state specific VAT regulation in which the business has its primary place of operation.
VAT Registration (TIN Registration)
Based on the state in which the business or person conducts his/her primary sale of goods, VAT registration would be required when the sale of taxable goods exceeds a certain threshold. The registration threshold varies by state and mostly VAT registration is required when a business sells goods in excess of Rs.5 lakhs per annum in many states. However, when a person/entity brings goods from outside the state for sale in the state or effects interstate sales, VAT registration becomes mandatory irrespective of value of the transaction. For identification/ registration of assesses under VAT, the Tax Payer’s Identification Number (TIN) is used. TIN consists of 11 digit numerals throughout the country. Its first two characters represent the State Code and the set-up of the next nine characters can vary in different States.
How Amazon Seller Programme Works
So Now We Prepare Some Frequently Asked Questions which is helpful for the registration on these type marketplaces.