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Trade license for sole proprietorship

Deblina Nandi Roy (Chartered Accountant) (84 Points)

16 September 2014

Dear Friends,

A person named Mr. A wants to come up with a business. He wants his own home to be the place of business. He resides in Kolkata. Now he wants to know the below:

1. Is Trade License mandatory for all businesses?

2. If yes, where to apply and is it possible online?

3. If Trade License taken, then is it necessary to get registered under the West Bengal Sales Tax Act as well?

4. At what limit of turnover should he get audited and file return?

5. If he plans to change his place of business to another state, is he required to re-apply for the Trade License and Sales Tax registration?

6. If he parallely runs business in more than one states, is he supposed to have separate Trade Licenses and Sales Tax registrations under all those states?

Thanks in advance for all your answers.

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1 Replies

Nihit Dalmia (CA) (140 Points)
Replied 18 September 2014

Hi, Let me reply one by one

1. Yes trade license is mandatory for carrying out any legal business.

2. You have to apply to your jusridictional muncipal authority, for Kolkata it will be Kolkata Muncipal Corporation.

3. No it is not compulsory to get registered under WB Sales Tax or WB VAT just because you have obtained trade licence.

4. For accounts & audit please go through the provisions of Section 44AB & 44AA of the Income Tax Act.

5. Yes he have to re-apply for both.

6. Yes he have to apply for separate registration for both.

Originally posted by : Deblina Nandi Roy
	Dear Friends, A person named Mr. A wants to come up with a business. He wants his own home to be the place of business. He resides in Kolkata. Now he wants to know the below: 1. Is Trade License mandatory for all businesses? 2. If yes, where to apply and is it possible online? 3. If Trade License taken, then is it necessary to get registered under the West Bengal Sales Tax Act as well? 4. At what limit of turnover should he get audited and file return? 5. If he plans to change his place of business to another state, is he required to re-apply for the Trade License and Sales Tax registration? 6. If he parallely runs business in more than one states, is he supposed to have separate Trade Licenses and Sales Tax registrations under all those states? Thanks in advance for all your answers.