13 May 2015
I want to start online retail business under sole proprietory company. For this I need to have VAT registration. I have few doubt in this regard. I was told that for VAT registration I should first open a Current Account and get PAN number for Sole Proprietory firm. When I enquired from a bank they said I have to submit VAT Registration Certification for opening a Current Account. I want to know whether for VAT registration having current account is necessary or VAT registration is prerequisite for opening a current account.
13 May 2015
Current Account is mandatory for VAT registration. First you have to open a current account. VAT registration is not mandatory for opening a current account. Ask the bank to show you the notification from RBI where it says VAT registration is mandatory for opening a current account. The bank cannot do this. They have to open account as per the checklist of documents mentioned by the RBI circulars.
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