Confused Please Advice. I am starting off with a new venture

Hello,

We are a pvt ltd co. in mumbai. We are into online retailing of T shirts. We will be launching in october. Our Company is incorporated and the certificate for the same has been issued. We outsource the entire process of manufacturing t-shirts. There are steps involved in the manufacturing process.

STEP 1 We out source manufacturing of knitted fabric only in tirrupur. The manufacturer makes the fabric and would be sending us. He says he needs my TIN No./ Vat to raise the invoice and send the fabric to mumbai.

Step 2 Fabric manufactured in tirupur is given to another person who dyes the fabric in Vashi

Step3 The dyed fabric is bought to a suburb in mumbai from vashi where the tailoring takes place and the printing takes place to make a finished product.

Step 4 in this step finished products are ready to be sold through online channel mainly internet.

Query: Do i need a vat/cst no? Can i apply for TAN and deduct TDS in step1,2 and 3.

is it nessecary to apply for vat? or a simple TAN/TIN number would do? Will i be able to bill my customers mrp + tax in what form? Please advice on this. As the manufacturer of the fabric says without TIN/ Vat he cannot dispatch. Hence i need to resolve this as soon as possible.

regards.

Ashwin Palkar

You need to Apply TIN and TAN. If u makes interstate transaction than CST also applicable. and if you purchase goods from out side maharastra than CST registration will do benefit to u.

Every trading concern must have TIN / sales tax no. if his turnover exceeds limits prescribed under the act. CST also applicable for a dealer who makes interstate transactions.

If step i prescribed above used own material for manufacturing of knitted fabric and than selling to u no need of Tax deduction. plz refer to explanation of job work u/s 194C. while step2 and 3 you have to deduct TDS.

MRP is Maximum retail price subject to inclusive of taxes or exclusive of taxes. if your MRP in excluding tax than u can charge MRP + TAx otherwise no.