Where to maintain account

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 Dear All,

I want to open a pharma marketing company through contract manufacturing for pharmaceutical product.
i want to open my office in Bangalore, and the supply of products will be from Himachal to UttarPradesh to the Distributor/Wholesaler from where it distributes to retailer..

1. Now my question is how to do the billing or generate the invoives to the distributors from bangalore office, because the goods are not coming to bangalore.
2. Can we supply the products from manufacturer to the party directly if our office will be in different state.

Please Give your Valuable suggestion to my queries because i have consulted so many CA's and lawyers but no one clear about this.

Many thanks in advance.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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09 January 2014 You can register in Karnataka(Bangalore),as a pharmaceutical distributor. You can take bulk orders from various wholesellers,and place orders to the manufacturers,as invoice to you and delivery to them on the LRs. From the lorry office you can take the manufacturer's invoice an replace it with your invoice. Now,the whole sellers have to give C forms to you and you to the manufacturers. The drug makers have to give an E1 form to you. You should not charge any tax in your invoice.This transit sale or E1 sale....mjk

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 It means CST will be apply on this type of sale. Whether we have to send original invoice to the transporter or scan copy will be sufficient.

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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10 January 2014 No,CST will not apply because you will be doing transit sale.In the invoice you should not charge CST and send original invoice to the transporter,along with a copy. If a check post comes on the way,they will keep a copy with a them and send original to the customer with a seal.Otherwise,you can buy bulk quantity from the manufacturer and sell to the wholesellers with local invoice by charging VAT....mjk