DESIGNING

This query is : Resolved

JAANU (Querist)
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16 September 2009 DEAR SIRS,
I AM HAVING A BLACK BUSINESS OF MY MOTHER WHERE SHE DESIGNS CLOTHES FOR WHICH SHE MAY HAVE TO BUY ALL TYPE OF STONES, AND OTHER MATERIALS. SO IF I START ISSUING BILLS AND CREATE A FIRM ON MY NAME WHERE I CAN ISSUE BILLS AND SHOW IT AS MY BUSINESS INCOME. WHAT TYPES OF TAXES WOULD I NEED TO PAY MEANS DO I HAVE TO GET REGISTER FOR VAT/SERVICE TAX.... I DONT DEAL IN CLOTHES.... BUT JUST SHOW HOW TO DESIGN A DRESS. I DONT STITCH IT AT ALL. SO PLZ GUIDE ME THE ISSUE

M Prabhakar Menon

M Prabhakar Menon (Expert)
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17 September 2009 If u intend to organise your business in a systematic manner with proper record keeping then like any businees unit u can avail bank finance etc If u are content with the way u are operating now then dont reorganiose your business. There are advantages and disadvantages as in any other case so make up your mind the rest will follow

JAANU

JAANU (Querist)
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17 September 2009 dear sir,

i want to organise it for creating my own brand name and expand my business. not for the purpose of loans and finances. i am here to know if i am going to expand my business and will start issuing bills in my brand name then what type of taxes would i need to pay ahead... i have made up my mind and so want to look forward

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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22 December 2009 First o all; get PAN number in your mother's name.

Open one bank account in the name of firm which you wish to select and proprietor will be your mother. There is more exemption limit to a lady assessee.

If stones and other materials can be purchased through bills then no problem at all. Register the firm with VAT Authorities also.

If she cannot purchase above materials with bills; prepare Purchase Vouchers. Take care that individual voucher is not exceeding Rs. 20,000/- if paid in cash.

If you are providing services the gross receipts of which exceed Rs.9.00 lacs per financial year; then you have to get yourself registered with Service Tax Department.