Trade of opening a chain of salons in india
This query is : Resolved
26 April 2014
Hi All!!
We are planning to launch a chain of Salon in India. Kindly guide me as to the requirement of any registration required in Government Authority in India. And also whats gona be the taxation aspect of the same.
Many Thanks in anticipation to receive replies soon.
Regards,
We are planning to launch a chain of Salon in India. Kindly guide me as to the requirement of any registration required in Government Authority in India. And also whats gona be the taxation aspect of the same.
Many Thanks in anticipation to receive replies soon.
Regards,
26 April 2014
If you are doing business in proprietorship. There is no requirement for any registration. You have to maintain accounts for branches and tax will be calculated after clubbing of all the income of branches. But If you have partnership firm or comapany, follow the procedure of the respective acts.
26 April 2014
Madam, many thanks for the input. Yes we are planning to start a proprietary business. What taxes shall be applicable? Kindly advice. Thanks again.
26 April 2014
As per tax slab of individual of f.y. 14-15. for f.y. 13-15, it is 200000.
Tax will be applicable after giving effect to all the expenses of branch and head office. Net profit will be considered for tax applicability.
Tax will be applicable after giving effect to all the expenses of branch and head office. Net profit will be considered for tax applicability.
26 April 2014
You should maintain following documents.
Asset purchase-furniture, vehicle
inventory-sale and consumption in business
expenses-salary, electricity, telephone charges etc
Investments-Lic, medical policy.
and get Accounting of business transaction monthly.
Asset purchase-furniture, vehicle
inventory-sale and consumption in business
expenses-salary, electricity, telephone charges etc
Investments-Lic, medical policy.
and get Accounting of business transaction monthly.
26 April 2014
Madam, my enquiry is for raising the invoices what taxes should be charged from customers. Thanks & Regards
27 April 2014
Service tax will be applicable @12.36% subject to slabs and conditions. Detailed guidance on bothra_piyush@yahoo.com
28 April 2014
Service tax will be charged if turnover of service provided is more than 10 lacks.
28 April 2014
Thanks for the input madam!! Will Luxuy Tax / VAT shall also be applicable? Regards
28 April 2014
It depends on state vat rules, Plz check the respective government vat site and you can find schedules of commodities on which vat is payable.
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02 August 2025
Great! You're planning to start a **chain of salons in India** — congratulations on the venture. Let's break down your query into **registration** and **taxation** aspects, especially under current laws (as of 2025), and considering you're starting as a **proprietorship** and possibly in **Chandigarh**.
---
## ✅ 1. REGISTRATION REQUIREMENTS (for a Salon Chain in India)
Even if you're starting as a **proprietorship**, there are certain **mandatory registrations**:
### 📌 Basic Registrations:
| Registration | Required For |
| ------------------------------------------- | -------------------------------------------------------------- |
| **GST Registration** | If annual turnover exceeds ₹20 lakhs (₹10 lakhs for NE states) |
| **Trade License** (from local authority) | Mandatory to operate a salon/business in municipal areas |
| **Shops & Establishment Act** | Mandatory registration with local labour department |
| **Professional Tax** (if applicable) | In states where it applies (e.g., Maharashtra, Karnataka) |
| **PAN & Bank Account** | Open in the name of your trade (e.g., "Glow Beauty Salon") |
| **MSME (Udyam) Registration** | Optional but beneficial for loans and subsidies |
| **FSSAI License** *(if offering beverages)* | Required if you serve tea/coffee to customers |
---
## ✅ 2. TAXATION ASPECTS (Latest Laws as of FY 2024–25)
### A. **GST (Goods and Services Tax)**
* Applicable if **aggregate turnover > ₹20 lakhs** in a financial year.
* **GST Rate for Salon Services**:
* Usually **18%** (under SAC Code 999712 – beauty treatment services).
* You need to raise **GST-compliant invoices**.
* If turnover is below ₹20 lakhs, you can opt to **not register** for GST (but you cannot collect GST from clients).
### B. **Income Tax**
* Since it’s a **proprietorship**, profit is taxed as **individual income**.
* Apply current **individual income tax slabs** (e.g., under new regime or old regime).
* Maintain proper **books of accounts**, and ideally do **monthly accounting**.
### C. **Other Applicable Taxes**
* **Luxury Tax**: **No longer applicable** — abolished after GST was introduced.
* **VAT**: Replaced entirely by **GST** since July 1, 2017.
> So in Chandigarh, **Punjab VAT** is no longer applicable. Instead, **GST** is applicable.
---
## 🗂️ Important Documents to Maintain:
* Asset purchases (chairs, mirrors, ACs, etc.)
* Inventory (cosmetic products, consumables)
* Expense bills (rent, electricity, staff salary, marketing)
* Daily sales register / POS records
* Salary and PF/ESIC records (if staff strength > specified limits)
---
## 📝 Summary:
* ✔️ Register under GST if turnover > ₹20 lakhs
* ✔️ Get Trade License & Shop Establishment Registration
* ✔️ Charge **18% GST** on services (if registered)
* ❌ No luxury tax or VAT — both replaced by GST
* ✔️ Maintain proper accounts and file GST returns (monthly/quarterly)
* ✔️ Income tax on profits as per individual slab
---
Would you like a checklist or sample invoice format under GST for a salon business?
---
## ✅ 1. REGISTRATION REQUIREMENTS (for a Salon Chain in India)
Even if you're starting as a **proprietorship**, there are certain **mandatory registrations**:
### 📌 Basic Registrations:
| Registration | Required For |
| ------------------------------------------- | -------------------------------------------------------------- |
| **GST Registration** | If annual turnover exceeds ₹20 lakhs (₹10 lakhs for NE states) |
| **Trade License** (from local authority) | Mandatory to operate a salon/business in municipal areas |
| **Shops & Establishment Act** | Mandatory registration with local labour department |
| **Professional Tax** (if applicable) | In states where it applies (e.g., Maharashtra, Karnataka) |
| **PAN & Bank Account** | Open in the name of your trade (e.g., "Glow Beauty Salon") |
| **MSME (Udyam) Registration** | Optional but beneficial for loans and subsidies |
| **FSSAI License** *(if offering beverages)* | Required if you serve tea/coffee to customers |
---
## ✅ 2. TAXATION ASPECTS (Latest Laws as of FY 2024–25)
### A. **GST (Goods and Services Tax)**
* Applicable if **aggregate turnover > ₹20 lakhs** in a financial year.
* **GST Rate for Salon Services**:
* Usually **18%** (under SAC Code 999712 – beauty treatment services).
* You need to raise **GST-compliant invoices**.
* If turnover is below ₹20 lakhs, you can opt to **not register** for GST (but you cannot collect GST from clients).
### B. **Income Tax**
* Since it’s a **proprietorship**, profit is taxed as **individual income**.
* Apply current **individual income tax slabs** (e.g., under new regime or old regime).
* Maintain proper **books of accounts**, and ideally do **monthly accounting**.
### C. **Other Applicable Taxes**
* **Luxury Tax**: **No longer applicable** — abolished after GST was introduced.
* **VAT**: Replaced entirely by **GST** since July 1, 2017.
> So in Chandigarh, **Punjab VAT** is no longer applicable. Instead, **GST** is applicable.
---
## 🗂️ Important Documents to Maintain:
* Asset purchases (chairs, mirrors, ACs, etc.)
* Inventory (cosmetic products, consumables)
* Expense bills (rent, electricity, staff salary, marketing)
* Daily sales register / POS records
* Salary and PF/ESIC records (if staff strength > specified limits)
---
## 📝 Summary:
* ✔️ Register under GST if turnover > ₹20 lakhs
* ✔️ Get Trade License & Shop Establishment Registration
* ✔️ Charge **18% GST** on services (if registered)
* ❌ No luxury tax or VAT — both replaced by GST
* ✔️ Maintain proper accounts and file GST returns (monthly/quarterly)
* ✔️ Income tax on profits as per individual slab
---
Would you like a checklist or sample invoice format under GST for a salon business?
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