mack (Thinking-to-start-business) (154 Points)
03 December 2022I know that GSTIN, EIC, RCMC, FIEO are required for proprietor doing export but apart from this do I require following ?
1) Shops and Establishment Act License [I don't know if it still exists and if I require it or not ?]
2) Registration for sales tax license [I am not sure if it still exists after GST introduce in 2017]
3) Udyam Registration (former name – “Udyog Aadhaar or MSME”) [I think this is optional and useful if want to avail government benefits on conducting business.]
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(132488 Points)
Replied 03 December 2022
1. Yes. It exists in most of the states.
2. No Sales Tax now
3. Optional.
mack
(Thinking-to-start-business)
(154 Points)
Replied 03 December 2022
Thanks for answering but I am still not clear on one thing that is, if I am starting a proprietorship for export and individually running all operation work by my own sitting in my house with a laptop and smartphone, and sometimes visiting another country trade fair/exhibition to sell occasionally meet the CA for accounting or audit if required. This all doesn't involve opening an office or hiring full-time employees so with this type of set-up do I need to avail "Shops and Establishment Act License", because I read that this license is useful only when somebody hires an employee but I will be running proprietorship for export business individually and it is very rare that I will hire one or two helping person and maybe I will go to meet CA based on consultation fee for advice or filing return or getting a digital signature on audit report ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(132488 Points)
Replied 04 December 2022
Will you register for GST?
mack
(Thinking-to-start-business)
(154 Points)
Replied 04 December 2022
Yes, as for conducting Export business I require Import-Export Code and for IEC it is mandatory to get GSTIN regardless of turnover or entity. So I am planning to open a sole proprietorship for doing export business and I will be registering for :
1) GSTIN
2) IEC
3) RCMC - for interested Export Promotion council
4) FIEO (Helpful for conducting export business)
5) Getting a Trademark (India and a few countries where I will be exporting)
6) My Digital Signature.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(132488 Points)
Replied 04 December 2022
So when you will register for GST, they will ask you to register under the S&E act, & profession tax act...
mack
(Thinking-to-start-business)
(154 Points)
Replied 05 December 2022
While registering for GST at gst.gov.in --> Services (main menu) --> Registration --> New Registration --> for will appear.
I have seen the entire process but I can't see that they are asking to fill S&E license number or any such term.
Apart from this, I can see that under the tab "State Specific Info" it is optional to fill in "Professional tax employee code number" and "Professional tax registration certificate number" as shown in the snapshot.
I am also confused that when I was working with an MNC as a software engineer then my employer was paying TDS on my salary then I never got a "Professional tax number or certificate". And when it is applicable for Income tax then do we need to obtain this "Professional tax employee code number" and "Professional tax registration certificate number" ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(132488 Points)
Replied 05 December 2022
These registrations are mandatory in many states, and notices would be issued as and when the department comes to know about your firm/company's operations through GST or IT returns.
mack
(Thinking-to-start-business)
(154 Points)
Replied 05 December 2022
Ok I agree with your point. but one last thing I am to understand is about "professional tax", as on the Wikipedia page or other locations the definition is very generic.
so just want to confirm that the Profession tax is a direct tax levied on income. but what income ? because when a person is employed then his employer will pay TDS and professional tax reduced from the employee's salary but how do those people who run a proprietor doing export business or lawyer, or doctor pays professional tax.
Do they need to get a professional tax ID and then pay professional tax added as a part of Income tax? but then where do I need to get a Professional tax ID ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(132488 Points)
Replied 06 December 2022
Unlike the name suggests, it is just not the tax levied only on professionals.
Professional tax is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.
Naveed Munir
(8 Points)
Replied 08 December 2022
Shop Establishment License – Shops & establishment registration is mandatory for all business entities. It not only includes fishing shops dubai and commercial establishments.
Robin Valery
(Robin Valery)
(22 Points)
Replied 08 December 2022
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