Registration query

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ASHOK (Querist)
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27 June 2014 Dear All,

We are planning to start a partnership firm in surat gujrat india and our main business is to sale textile products (readymade garment purchase and then sale + manufacture and then sale)through our website and we receive order and payment through our website and after it we delivered the goods to buyer which can be located in india or outside india.

Please suggest us what are the legal formalties and registration required to sale our product like PAN,TAN,VAT etc....

And my second question is whether we should take IEC(IMPORTER EXPORTER CODE)bacause we sale goods outside of india also if order received.

Can we apply for SSI also.

PLEASE GUIDE US....

THANKS IN ADVANCE

CA Mayank Ogrivala

CA Mayank Ogrivala (Expert)
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07 July 2014 Dear Ashokbhai,

1) Prepare a formal “PARTNERSHIP DEED”.
2) Apply for a PAN Card
3) Apply for a TAN no. ( Please take care that firm have to deduct TDS on certain transaction like if you are paying commission, salary, rent etc) ( if you are dealing with website like snapdeal, you have to deduct TDS on the commission you are giving to them)
4) Apply for a Registration of Partnership to “ Registrar of Firms ( ROF)” ( Although this is not compulsory but it is useful as a business proof at the time of opening bank account. And the same is most advisable if you are doing partnership with other than family person. Because if the firm is not registered, you can not file suit against your partner for fraud or you can not file a case against your creditor too.)
5) Open a Bank Account
6) As you are dealing with the readymade garments, you have to take a VAT registration. You are selling goods outside Gujarat too so you will require CST registration. Upto turnover of Rs. 5,00,000/- there will be no need to take registration under VAT.
7) You can apply for SSI.

ASHOK

ASHOK (Querist)
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23 July 2014 Thanks Mayankbhai,

Please suggest us for IEC also.....and please tell us the benefit for SSI Certificate

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Hey! Here’s a detailed reply for your queries about starting a partnership firm selling textiles in Surat and related registrations:

1. Legal Formalities & Registrations for Partnership Firm in Surat:
Partnership Deed: Draft a formal partnership deed clearly defining partners’ rights, duties, profit sharing, etc.
PAN Card: Apply for the firm’s PAN for tax purposes.
TAN: Apply for TAN as the firm will deduct TDS on payments like commission, rent, salary, etc.
Registration of Partnership Firm (ROF):
Not mandatory but highly advisable for legal validity and business proof.
Required if you want to file cases or enforce legal rights.
Bank Account: Open a current account in the firm's name.
VAT Registration:
Mandatory if turnover exceeds threshold (Rs. 5 lakhs in Gujarat).
Required to collect and pay VAT on sale of goods within Gujarat.
CST Registration:
Needed for inter-state sales (sale outside Gujarat but within India).
GST Registration:
GST has replaced VAT/CST since July 2017. So you need to register under GST if turnover crosses Rs. 20 lakhs (Rs. 10 lakhs for special category states).
You must comply with GST for intra-state and inter-state sales.
Import Export Code (IEC):
Required if you plan to export goods outside India.
IEC is mandatory for customs clearance and international trade.
SSI Registration (Small Scale Industry):
You can apply for SSI registration if your manufacturing unit qualifies under MSME norms.
Benefits:
Eligibility for various subsidies, schemes, tax benefits, easier loans, and priority sector lending.
2. Specific Points on IEC and SSI:
IEC Code:
Obtain from DGFT (Directorate General of Foreign Trade) website.
No annual renewal required.
Necessary for export/import transactions.
SSI Registration Benefits:
Access to government schemes, lower interest rates on loans.
Preferential treatment in tenders.
Reimbursement of certain taxes and duties.
Technical and financial assistance.
Summary Table:
Registration When Required Authority Notes
Partnership Deed At start Prepared by partners Essential document
PAN & TAN Immediately Income Tax Dept. For tax filing & TDS
Registration of Firm Recommended Registrar of Firms, Gujarat Optional but useful
GST Registration Turnover > Rs. 20 lakhs GST Portal Replaces VAT/CST
IEC Code If exporting goods outside India DGFT Mandatory for export
SSI Registration If manufacturing & meets criteria MSME Office For benefits & subsidies

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