(1)From I.Tax / S.Tax / Excise point of view, can we constitute (and get it registered with IT/ST/Excise) another firm (trading firm) having same address of our main firm (manufacturing excisable firm)having one or two same partners ? This trading firm will purchase from our main mfg firm and sell to customers. Does such arrangements amount to have started second firm (a)to evade i.Tax / s.Tax or Excise ? or (b) to remain below threshold limit for excise /?
16 August 2009
From Sales tax point there will not be any problem.
From income tax point of view both the incomes will be clubbed as one entity if you have same partners if one or two are common then under income tax it will be diferent entity.
From excise point of view the second firms sales value will be deeded as value for excise purpose and differtial duty has to be paid on the same.
For all the registrations you can have one place but the area of operational place for each entity in the building should be demarkated and kept before itself or submitted to authorities.
CAclubindia
