Service tax for startup

Service Tax (Legacy) 471 views 2 replies

Sambit Patel

Director

180 Points Posted on 09 June 2014

Hi, we are a new online store, we two college frirnds have started it up. We are looking for more information.

Right now, we import stuff, deliver it to our clients, collect payment to my personal savings account.

I think, we should register the website name as a sole prop company. But after that, do we need to pay service tax and VAT for each transaction ?

Or we only register for Service tax, after the bank transactions reach over 10 lacs ?

How about VAT ?

Is it from Day 1 after the registtration is done ?

Replies (2)

Harendra Kumar

Tax Advisor

1326 Points Posted on 09 June 2014

In this regard you maintain a seperate account and also should register Import and export code for Importing the goods if you having the sale of goods and services then you need the Service Tax registration no. and Vat Registration no.

Hope these procedure adopt by you.

Sambit Patel

Director

180 Points Posted on 09 June 2014

Originally posted by : Harendra Kumar
	In this regard you maintain a seperate account and also should register Import and export code for Importing the goods if you having the sale of goods and services then you need the Service Tax registration no. and Vat Registration no. Hope these procedure adopt by you.

1. Banks dont allow to open an account without documents. So, have to register as sole prop and then open a bank account.

2. The import export license needs to be done in the website name ? How much time does it take to come ? Does that mean, the custom charges and procedure are different for companies than indivisuals ?

3. So, we have to take service tax from day 1 after registration ? And VAT too ?