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Amit Agarwal (Querist)

26 July 2011 Dear Experts,

Now-a-days Sales Tax Dept. is becoming a nightmare for Importers. In a China Mobile industry in Kolkata, Importers are now facing problems in Importing Mobiles as the Vat Dept is asking for books of accounts after every 5 or 6 Consignment Imports. Many of these Importers were selling Mobiles in Grey (Black i.e. not charging Vat from customers) and earning profit. Now if they start chrging Vat no customer will buy the mobiles as the cost becomes high. So the Importers are very scared.

My question is:
1. Can we find any way where the client can easily sell the Mobiles without Vat and the Sales Dept allows the same?

2. Can we think of SEZ?

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

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

26 July 2011 SEZ is not the solution. From SEZ you have to export then only VAT is not applicable but you are importing. As there are big players in the market for selling there mobile sets the import from China has taken away their sales and the Government is also deprived of the revenue and hence there is no other way out for selling the Mobile without VAT

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

28 July 2011 Mr Amit Agarwal,
One short method I can suggest isyou appoint distributors in different places for your products and make sale in the course of import to them.In this type of sale you can issue an invoice at your price
and hand over all the shipping documents to the distributor to whom you are selling.You need not charge tax at your sale point.But your distributor should be a registered dealer and should charge tax on his sales.These distributors can be at other states,cities and you can avoid only one instance of tax.
In general,never take up a business where tax problems arise,because it results in lot of ccomplications and ultimately loss.
MJK

Amit Agarwal

Amit Agarwal (Querist)

18 August 2011 Thank you Experts, you all are the best.

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