Formalities for proprietorship firm

This query is : Resolved

Sucheta (Querist)
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07 March 2009 I have started Proprietorship for trading in Edible coconut oil.My office is in Navi Mumbai.
I will buy Coconut oil from supplier in Kerala and supply to customers in Maharshtra, Tamilnadu and Delhi.

I want to ask about whether I have to pay any CST/ST/VAT for:
My office is in Navi Mumbai and supplier in Kerala and my customer is in:
1.Maharshtra
2.Kerala
3.Delhi
If I have to pay any taxes for the transaction for the above 3 cases then when & how it is to be paid?
How the billing should be done for the above?

How to get the registration for the taxes if required?

What is rate of Income Tax for the Proprietorship? and when I have to pay the same?

Kindly clarify the above queries.
Regards,
Sucheta

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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07 March 2009 Yes, you need to register both for CST and VAT. As you are importing goods from outside state, to get lesser rate of taxes (sales tax /vat/cst) on your purchases you need get CST number and also to charge lesser rate of taxes to your customers (only if they provide you CST number and C form).

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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07 March 2009 There is no separate rate of income tax for a proprietorship. The profit from prop. business will be taxable in the hands of prop., so rate of income tax applicable to an individual will apply.

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CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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07 March 2009 In my opinion you need to consult a professional for this. Please contact with a Chartered Accountant near to you, he will propery guide you in this matter.