Sales Tax Registration is mandatory for any business entity engaged in the sale of goods in India. No VAT is levied on goods exported from India. VAT is collected and governed by the State Government. So each State Government in India has distinct rules applicable for their State based on the type of good manufactured or sold.
Sales Tax Registration is required if the annual turnover of the business crosses Rs. 5 lakhs in most states, though some have raised this threshold limit to Rs. 10 lakhs. When registered for VAT/Sales Tax, the manufacturer or trader is allotted with a unique 11 digit number which will serve as the TIN Number for the business.
An excise tax is an indirect tax charged on the sale of a particular good. Indirect means the tax is not directly paid by an individual consumer; instead, the Internal Revenue Service (IRS) levies the tax on the producer or merchant, who passes the tax onto the consumer by including it in the product’s price. It also refers to penalty taxation for ineligible transactions in retirement accounts.
It is an inland tax on the sale, or production for sale of particular goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are different from customs duties, which are taxes on importation. Excises are commonly imposed in addition to another indirect tax such as sales tax or value added tax (VAT).