I just got my IEC code as a merchant exporter, I am a new Proprietorship firm in Mumbai and do not have Vat/Cst yet, I am planning to import certain items for re sale.
My question:
Can I import without a Vat/Cst number
I plan to import items for 5 lakhs and then sell them, and then ally for Vat/Cst so that I do not have to pay Rs 25,000 as deposit for Vat.
Is the above senario possible or I need to get both Vat & cst and then import?
AT THE TIME OF IMPORTS OF GOODS WE HAVE TO GIVE OUR VAT AND CST REGISTRATION NUMBER TO CUSTOM AUTHORITY WITHOUT WHICH WE THEY WILL REFUSE TO CLEAR GOODS.
(CASE AS PER MY CLIENT ONE YEAR BACK)
IF THERE IS CHANGE PLS CORRECT ME AND GUIDE.
Thany you!
On my way to apply for Vat/Cst
it will be best you if you registered inVAT department for refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007
I heard that if your sale is below Rs. 5,00,000 than till that time it is fine if you dont have VAT/CST. We can pay tax on the same by showing under Income from Business in individual IT filing.
This is what I heard, I will appreciate if any1 of you clarify the authenticity of the same.
Thanks
Exactly Harshal, that is a question even I am concerned off.
Seems to me you will need the VAT/ CST number as per Mehul for any exports or Imports
It will be great if Mehul or some1 else clarify.
I am also planning to Import goods and one of my CA friend told me that no need to go for VAT/CST registration as deposit will cost you high. I am also not sure of it.
Hi all, I am also in the same boat as Mehul.. only thing is I my question is regarding export. I have formed a new pvt. Ltd company for merchant export activity. I have received my IEC already. My question is..can I procure material worth 5 Lac Rs. under form H as URD and export the same and then apply for VAT registration in order to avoide paying deposit of Rs. 25,000 to the department? Will there be any problem in issueing form H to the supplier at a future date if this is possible?
Alternatively, what is the right way of handling this for a merchant exporter like me, if someone can guide me. Thanks in advance..
CAclubindia
