My father currently has a stationery shop,I want to register another business for selling gifts online,but I want to register it on the same address.Is it possible?

Secondly, to sell online I need a TIN number, How do I go about with this registration if I am not exeeding the turnover of 10 lacs pa.

Also I will be buying my stock from online chinese suppliers, do I need an importer exporter code? How do I account for VAT under such circumstances?

Will be glad if someone could help me out 

Posted 2 years, 8 months ago by Gretel Fernandes

Mr Gretel Fernandes,

Registration of a new firm in an existing address of a TIN holder is not possible. You will have to apply using a new business address.

You would need to apply for a TIN if you think your taxable turnover may exceed Rs 7.5 Lakhs in a financial year ie. from April - March . You will also need a TIN, when you do Interstate trade of goods. You may refer to Sec 22 of KVAT Act, 2003 for the conditions. You may contact us for any inquiries if you need a TIN & IEC for your business.

You will need an IEC code since its a business. You will be exempted from IEC only when it is for agricultural or personal purposes.You will not be paying any VAT on your import purchases. However, you will be liable to VAT & CST duties when you sell them in Karnataka or outside karnataka.

You may contact vedantadeshika@gmail.com for any Professional Inquiries in this regard.

Posted 2 years, 8 months ago by HS VEDANTA DESHIKA


Thank you for your reply, the existing stationery business doesn't  have a TIN no.Can I register the business on my flats address? as I will be needing the place only to stock my itehms Since I require a TIN to sell on flipkart, I need to apply  for a TIN no even if the business doesn't exceed the turnover.Will I be able to register for it?

If I charge VAT without paying for it, how do I account for it?

Secondly is it mandatory to maintain books of accounts once you register for VAT but dont exceed the annual turnover of 7.5 lacs?

Thank you so much!

Posted 2 years, 8 months ago by Gretel Fernandes

Mr Gretel Fernandes,

Yes, u may register the business in your flats' address. However, its not an easy task. You may have to seggregate a portion of your flat as business premises and stock your merchandise. You will need to put up a Name board indicating your business name. Normally, inspectors are very strict , they wont allow residential premises to get registered. So, this idea may not be very successful.

I would rather advise you to take a small shop on rent for a month or so, put up a small name board , so that until the inspection and registration is completed, you dont face any problems.Later on, you may shift your stock to your flats. 

Yes, you can apply for voluntary registration. Infact Sec 22 mandates registration of casual dealers as well.

No, its illegal if you do not remit the VAT you collected from customers, to Government. You need to remit it on a monthly basis. 

Yes, Sec 31 mandates you to maintain books of accounts relating to Purchase, Sale, Receipts, Stock, Input & Output tax , including the invoices for a period of 5 years. 

Posted 2 years, 8 months ago by HS VEDANTA DESHIKA

The issue is very well solved by Mr. Vedanta Deshika. These days people ask too much about online selling. Our laws are not yet very much updated to cover this aspect.

Most of the laws were drafted when this new form of trading did not exist in India. VAT is a pain when it comes to online selling.

A similar issue was discussed here Online Selling at marketplace of ecommerce sites.

Posted 2 years, 8 months ago by CA Pulkit Sharma

Thank You CA Vedanta and CA Pulkit Sharma. I am based in Goa,how much will it cost to register for VAT voluntarily and also to get an IEC code?

Also what are the requirements to get an IEC code?

If I do not pay VAT on imports and if I do not charge VAT on invoices,is there a procedure to be followed?(if i obtain TIN no)

Also what are the books of accounts needed to be maintained after applying for VAT? Do i need a CA for this process?(initially I don't think i will be exceeding 7.5 lac pa)

Posted 2 years, 8 months ago by Gretel Fernandes

Hi Gretel,

Since you are based in Goa, the revenue laws of Goa will be applicable to your business. 7.5 Lakhs was quoted assuming you were based in Bangalore.

To become a seller on Flipkart TIN is required, your customers may be from any part of India and doing an interstate transaction requires that you have VAT registration.

Books are nothing but you sale invoices and purchase invoices. You need to have a register or you can maintain in some accounting software. You need to record invoices issued and purchase bills along with any other expenses incurred.

Before you start you should consult a local tax consultant to better understand the laws in Goa.

Please feel free to discuss the entrepreneur in you!!!

Wish you best of luck for your venture.

Posted 2 years, 8 months ago by CA Pulkit Sharma

Thank you so much. Just wanted to know how much it normally costs to get TIN no and IEC code. I was thinking of obtaining the TIN number for the existing business of my father's and hope to get it started by May atleast.

Posted 2 years, 8 months ago by Gretel Fernandes

In Karnataka it works cost you 11000 to 15000. In goa you have to consult local consultant.

For IEC you will need vat registration. It will cost around 3500.

Posted 2 years, 8 months ago by CA Pulkit Sharma

Your Reply:

You need to be logged in to reply.