Query regarding my startup

Hi,
      I'm planning to start-up a business as a Sole Proprietor.
My idea is to create a T-shirt brand by printing the designs made by me, over the blank T-shirts manufactured by the third party and selling them to the customers through online.

I understand that I will have to pay VAT and CST, as my business involves reselling goods and inter-state sales. I'm from Chennai; my total investment would be less than 2 lacs and expected revenue generated would be less than 5 lacs per annum in the initial years.

I have few queries which I have mentioned below:
1. Should I opt for GST as a single entity for paying tax, instead of VAT and CST?

2. When should I register for VAT and CST - after making my first sale or before the commencement of my business or after the manufacturing but before the first sale (i.e. indirectly after the start of my business) ?

3. What other requirements are needed to start this business as a sole proprietor, like current bank account, registration under shop establishment, etc... ?

4. Is current bank account compulsory or could I manage with my savings bank account for the transactions?

5. Should I register for Brand name before start of the business or after my first sale?

6. What are the pricing for all the registrations - Quotation?

7. What is the time period required? like when should I start registration and when could I start my business? because I'm planning to start the business in the next 15 days.

8. what are the documents required? Also the PAN should be in the firm name or the proprietor's name?

Thanks,
Prakash
Asked 1 year ago in GST from Chennai, Tamil Nadu
My replies to your queries :-

1. Should I opt for GST as a single entity for paying tax, instead of VAT and CST?

As of now , GST is not yet introduced. Hence you have to opt for VAT & CST Registration only

2. When should I register for VAT and CST - after making my first sale or before the commencement of my business or after the manufacturing but before the first sale (i.e. indirectly after the start of my business) ?

As per TNVAT Act, when your Sales is more than Rs 5 Lakhs , you are required to register with VAT & CST. However, in you case, since you are planning to do online trade, it is advisable to get registered yourself immediately on commencement of business since the business involves movement of goods within state and outside state, wherein it should be supported by proper invoices/documents.

3. What other requirements are needed to start this business as a sole proprietor, like current bank account, registration under shop establishment, etc... ?

You need to register with Local Authority for Professional Tax, Shops & Establishments Act & bank account

4. Is current bank account compulsory or could I manage with my savings bank account for the transactions?

Savings account will be in your personal name. Hence current account in the name of the entity is preferred.

5. Should I register for Brand name before start of the business or after my first sale?

Registration of brand is not mandatory. Ensure that you do not infringe other's brand/trademark.

6. What are the pricing for all the registrations - Quotation?

Please contact us for the same seperately.

7. What is the time period required? like when should I start registration and when could I start my business? because I'm planning to start the business in the next 15 days.

VAT/CST registration will take between 15-20 working days. But you can start the business immediately after making an application for registration.

8. what are the documents required? Also the PAN should be in the firm name or the proprietor's name?

Please get in touch seperately for the list and PAN in the name of Proprietor is sufficient.
B S Sridhar
CA, Chennai
35 Answers
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