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ravi1234 (Proprietor ) (26 Points)

11 August 2016

hi, to all and thanks the website owner,moderators and all my dear pals.

1stly let me tell you about me, i am RAVINDRA RANA,from West Bengal.

i am planning to start my own business, but confused about billing to costumers. my business consist of Cyber cafe,xerox,toner refilling and selling of Paper.

1) i want to run my business as proprietor

2) other than Trade License what others do i have to register

3) i often see service tax extra in my area 15% do i have to register any thing or can i use the supplier(company where i buy wholesale )

4) do i have to register , for adding swach bharat chess,education chess in my bill

expecting handy suggestions :D

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4 Replies

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 11 August 2016

Hi ravi,

i appreciate your endeavour in starting a new business and being your own boss,

further i am answering your queries:

1) you can very well do your business as proprietor, and you got a trade licence ( named your cafe) and registered with the muncipal tax as the place of business, then it is fine no more things are required.

2) your trade license which you got is enough and your pan card will be required for your filings further ( as it is proprietorship) if it is a firm etc then you have to take a seperate PAN for partnership

3) service tax registration is required only when you gets a turnover(gross receipts) of 9 lacs, until then no need to register for service tax

4) not required, you cannot take any service tax credit on the services you pay for. and above two things your trade license and pan are enough.

once after any year file your income tax returns accordingly

1 Like

ravi1234 (Proprietor ) (26 Points)
Replied 11 August 2016

thank you mate for the help and advice, currently i will work on that thanks for the advice :D

ravi1234 (Proprietor ) (26 Points)
Replied 11 August 2016

@ CA Srujann kumar Reddy means if i make a bill of Rs. 100 and levy the tax 15%+2%+0.5% =117.5%

can i do that untill 9 lac, after that i have to register a service tax. am i correct

sandeep (Accountant) (111 Points)
Replied 11 August 2016

You can not raise bill with levy of service tax as you are not registered with service tax department.you just make a bill of Rs. 100/- and that's it till you crossed the threshold limit.

If i am wrong please let me know.