New Business Tax Legalities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2011 I have opened a Optical shop in UP 8 months ago. I am the sole owner and the shop is on rent. Sale is around 40,000/- per month as its a starting stage.

Want to know if
1. Proprioter ship firm registration needed?

2. Sales Tax, Tin No and VAT registration required at this stage.

If yes, Whst is the procedure?

If No, What all records must be maintaned by me.

please guide in detail.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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21 June 2011 For the Proprietor-ship business no registration is required. Get the rubber stamp and letter pad printed. The only registration required is under shops & Establishment Act and a Trade Licence from the Municipal Corporation. This will serve the purpose.

As regards Sales Tax (VAT) You have to find out what should be the minimum sales where no registration is required. In my opinion if your are purchasing goods from local market then it is up to you to get registration provided you have not crossed the minimum limit fixed for registration by the VAT Act of UP. If you have crossed the limit then it is advisable to get your self registered under

a) VAT
b) CST

On VAT registration you will be a registered dealer and whatever VAT you are paying can be adjusted against VAT collected and you can import the goods from other states by paying 2% CST.

For procedure you have to contact a local person who is practicing in Indirect Taxes or go directly to the Sales TAX department. find THE WARD AND FILL-UP THE NECESSARY FORMS AND SUBMIT.

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