10 August 2011
The following precautions need to be seen before wholesale trade:-
1.Licenses specified by the government must be obtained 2.Eligible sales, except where sold to government, only if made to: a.Entities holding sales tax/ VAT registration/service tax/excise duty registration; or b.Entities holding trade licenses; or c.Entities holding permits/license etc. for undertaking retail trade; or d.Institutions having certificate of incorporation or registration as a society or registration as public trust for their self consumption 3.Full record of the sales to be maintained 4.Wholesale trade to group companies taken together should not exceed 25% of the total turnover and such sales should be for internal use only 5.Wholesale trade can be undertaken as per normal business practice, including extending credit facilities subject to applicable regulations 6.A Wholesale/Cash & carry trader cannot open retail shops to sell to the consumer directly
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