My online apparel store does annual turn over less than 5Lac, do I need VAT registration
My online apparel store does annual turn over less than 5Lac, I have not registered a company, cos I work out from home and do shipping with in karnataka. I have below queries, kindly provide the right details :
1. As I work out from home, I have not registered my company or got any license for business. If I have to get a liscence, what liscence I should get and the procedure to get ?
2. Since my yearly turnover is less than 5 Lac, do I need VAT registration ?
3. Do I need TIN or TAN number ?
4. Do I need PAN card for my company ?
Currently I'm operating with my personal savings bank account, do I need to get current account for my company. Please provide the details, thank you in advance.
For any business (Except Business of special nature specified), one need to get VAT registration only if trunover crosses specified limits of 10 Lakhs in a year or Dealer is involved in Interstate trades. Since you sell only in Karnataka, you can obtain VAT after your sales cross 10 lakhs or approach 10 lakhs.
However a current account is suggested for smoth running of business rather than legal requirements.
In a year more than 10 lakhs transaction in a saving bank account, makes you eligible for AIR report by bank. Better you take the current account.You dont need seperate PAN, PAN on your name is sufficient to file IT returns of your business. Include income from your business in your IT return.TIN and VAT is same.Maintain bills of your all sells and purchases. Bills should be serially numbered.
Thank you Pulkit for your reply, I have understood the part on VAT, but my question about License is still unclear. I dont need to register my company or get a trade or shop license to carry out my business.
These are labout licenses you are talking about. You will not be employing anyone so not required. Trade License is from BBMP to allow you trade.
You can take this license from your local municipality office to open current account or produce as a proof of your business. Trade license is cheapest if you want some proof for your business.
India is having complex sales tax framework, the protocols of VAT registration is the custom at both the levels central and state level.
It just depends on the terms and condition of the state and what is the annual income of your store.
You can also refer the below links through which you can know more regarding VAT registration.