PLEASE REPLY - Information required for establishing new firm

Hi Vijay,

Please find my Comments below for your query;

1 - As per my understanding there is no any requirement of Firm Registration.

2- You can simply apply for VAT

3 - If you will pay more than Rs 5000/- towards Interest in one Financial Year then you have to deduct TDS on Interest Income and need to deposit the same to Income Tax Department (In this case you required TAN also).

Example:

Let suppose you have taken Rs 30000/- as a loan from Mr. A at the rate of Interest 20% P.A. then you will pay Rs 6000/- towards Interest to Mr. A. In this case, you have to deduct Rs 50/- towards TDS on Interest paid to Mr. A.

Calculation: = (6000-5000) *5% = Rs 50/-

Suggestions:

1. If firm is sole proprietorship, please do your return filling every year.

2. Maintain proper documentation of everything.

NOTE : Request you to please consult with CA firms/ consultants before taking any action on the basis of my suggestions/ Comments

Thanks

Saurabh