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Properitorship at residential address

Goyal (Partner) (33 Points)

06 August 2011

We want to set up properitorship in Mumbai for trading (buying and selling) imported as well as local manufactred equipments (capital goods).

Questions:

1) Can we register the Properitorship at residential society (in Mumbai)? What are the formalities for "Letter of enlistment" from BMC? Can we get Import Export Number / CST/ VAT with home address?

2) Subsequently we will need a warehouse (outside Mumbai but in Maharashtra) to keep the stocks. To pass on Cenvat credit, we will need to register as stage 1 dealer. Can we have separate address for Excise registration and IEX number and still pass on the credits?

Thanks for the clarifications,

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3 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 07 August 2011

1) there is no restriction for registering proprietorship firm at your residence, but a)the municipal tax may go higher like rocket, as they will consider your alloted area as commercial in place of residencial b) your society members may make an issue for running commercial activities from residence, as the commercial places have frequent visitors which may not be liked by society owners. to get the certificate of enlistment, please visit the local municipal office, with address where you need the certificate of enlistment, and carry some letter pads, they will provide you a form to fill up and after submission they will issue the same ( at some places where manufacturing is done, they need to inspect before issue)

2) Excise (dealer) registration is to be obtained localtion wise, i.e you have to obtain registration at the place of storage.

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Goyal (Partner) (33 Points)
Replied 07 August 2011

Few more questions arises:

1) If we are doing some value addition (e.g. buy 3 finished equipments and make an assembly), will this be considered manufacturing activity? Can we invoice for excise duty including our margin? Should we be then registered as manufacturer with excise?

2) If we are providing after sales services (say supply imported spare parts for machinery and charge for service), do we need to pay service tax also? Can we recover the same from customers? Can we pass on the cenvat credit for the CVD/ SAD paid on the imported spare parts?

Appreciate your help.