Vat on machinery on govt credit gurantee schemes

Hello Friends,

I am based in Jabalpur Madhya Pradesh, Planning Machinery purchase under government's Pradhan Mantri Rojgar Yojana, I am eligible for 25% subsidy under this scheme. I will be putting these machines in rural area.

I am buying machine from Delhi manufacturer and he is Charging 12.5% VAT on it, he also said that he can give on 2% CST but i have to produce C form and need to give registration details along with the order. Situation is i do not have any registration yet as it will be a proprietorship.

No my queries are ...

1)How can I save 10.5% and pay him only CST and give C form?

2)What should I do as I am planning to register SSI provisional?

3)Should I register SSI under proprietorship?

4)How much time it will take if i register SSI under proprietorship and what is the VAT registration procedure and how much security i have to give to Govt.?

5) Should I register a firm first than SSI under that firm?

6)Can we change proprietorship into partnership firm in near future?

Please help me

Regards,

Ajeet Shukla

1)How can I save 10.5% and pay him only CST and give C form? 2)What should I do as I am planning to register SSI provisional? 3)Should I register SSI under proprietorship? 4)How much time it will take if i register SSI under proprietorship and what is the VAT registration procedure and how much security i have to give to Govt.? 5) Should I register a firm first than SSI under that firm? 6)Can we change proprietorship into partnership firm in near future? Please help me

dear ajeet,

to the best of my knowledge there is no other way to save 10.5% of cst unless u register urself under vat scheme and provide the c form to the seller

if u are in a hurry keep ur bussiness as a proprietership only coz u can use your PAN card which i assume u will have for sure,,, as in case of a partnership u will have to seek a new pancard (15 days set back)

VAT & CST the most important this is bank guarantee or surety both are two different things

either u can have a bank guarantee with a bank which is basicaly an Fixed Diposit of 50000 each for vat and cst total 1,00,000 or the second option is Surety in this case two establised bussiness entites registered under VAT and CST can act as guarantors for you with the department with the bank gurantee the hold.

in a sole propritership there in no deed as in case of partnership so the quckest legal documnet/ registeration you can have for your self in registeration under shops and establishment act which you can get in 2 to 3days online at https://www.labour.delhigovt.nic.in/ser/

this is a small but very helpful document you can get a lot of registeration on this doc

u can get a current a/c on this and this will also help in SSI

KINDLY NOTE : DO NOT FULLY RELAY ON INFRMATION GIVEN DO TAKE EXPERT ADVICE ON THIS