I wish to start a sole-proprietorship entity for a product where I would be making the product and installing it in customers' premises myself. I plan to operate the business from home.
I have the following queries:
1. What kind of registrations do I need to start my business? VAT, ST, TIN, TAN?
2. Can I use my home address as business address? My mother has a trade license for running a beauty parlor. Can I use this address as my business address?
3. What documents would be needing for the registrations?
4. Which taxes apply to me:
a. while billing a customer for product sale and installation
b. while purchasing semi-finished products from my suppliers
Your guidance would really help!
Below are the answers for your queries.
1. You need to get yourself registered for VAT and Shops and Registration act. ST is only for the services and not for products.
2. For registration you need commercial place.
3. There are various set of documents rquired for registration. Pls drop me a mail at email@example.com. I will send you list of documents required.
4. a. While billing to customer you need to apply VAT.
b. While purchasing semi finished goods, there would be VAT applied by your supplier for which you can claim credit. Also you need to deduct TDS while making payment to your supplier if you satisfy some conditions.
Let me know if you need more information.
CA Manish Dalmia
To set up propritership firm you need following things
1) VAT Registration
2) Service tax Registration
3) Commercial /Partition Space for businness
There are various documents required for propritership firm registration .pls drop me mail at firstname.lastname@example.org. we ll revert with list of documents .