Hi, I am setting up Pvt Ltd company in Mumbai (India) for online e-commerce business, where I am planning to start Drop-shipping business mainly for Indian Buyers. They will place an order online for consumer products and seller mainly from outside India (China, USA, HK) will deliver directly. The money will be received by us from Buyer and paid to seller by us, keeping our margins in an Indian bank account. My questions are: 1. Do we need Import Export License? 2. What other licenses are required (we already got PAN, TAN, GST) 3. What are the filing requirements (GST, Income Tax, ?), any thing else?
- PAN and GST will be alloted to you at the time of incorporation of the company.
- It is better to apply for IEC to avoid any future litigation. It is a one time activity.
- Statutory compliances will be ROC, GST and Income tax.
- You need to apply for TAN separately. Deduct the TDS timely and deposit it within the time limit.
- In case of foreign payments, you need to file Form 15CA and 15CB as applicable.
- Statutory and Tax Audit will be required.
Hi,
Hope you are doing well !!
1. It is always advisable to acquire IEC for service providers. DGFT issues IEC online, pursuant to uploading of the required documents and on payment of relevant fees.
2. No, it is sufficient.
3.Private Limited Companies are required to file its Annual Accounts and Returns disclosing details of its shareholders, directors etc to the Registrar of Companies. Such compliances are required to be made once in a year.
Apart from GST & Income Tax, you will have to fulfil statutory compliances-ROC filings, Statutory & Tax Audit etc.
-Further, as per Section 195 of Income tax Act, 1961, every person liable for making a payment to non-residents shall deduct TDS from the payments made to non-residents if such sum is chargeable to Income tax then the withholding tax need to be deducted and form 15CA and 15CB are the declaration for the same.
-A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online.
Hello,
Yes, it would advisable to get IEC.
Since you are registering private ltd company, Statutory audit and annual ROC compliances would be in addition to the regular returns filed under GST and Income tax.
Under Income tax, Tax audit would be required and for foreign payments, Form 15CA and 15CB as applicable would also be required. Quarterly TDS returns would also be filed for specified payments.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
What are the Terms of your sale since the goods would directly reach the consumer so if there is any custom duty who will bear the cost? You or consumer?
What will be mentioned in the bill from the seller? Billed to your company and shipped to consumer or billed and shipped to consumer? If second one is yes then you are not required to take IEC code.
Since you are going to set up Pvt Ltd company your compliance would include filing of Annual ROC returns, Statutory audit report, Income tax return and GST return also you would be required to deduct TDS where ever applicable. If you dont want all such compliance and it you are going to do business alone it is requested to work as sole proprietor with less compliance.
While filing GST return you need to decide whether you are importer or just a commission agent.
You dont need any other license other than the one you have already taken.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
1. Yes.
2. You would need IEC, PAN, TAN and GSTN for the above business. No other requirements. You may even work as a sole proprietorship concern.
3. GST filings would depend on the turnover whether monthly or quarterly filing would be required. No filings for IEC. Income tax filing would be done annually. But, advance taxes shall have to be paid in June, Separate, Dec and March respectively.
If a company is formed, filings with the ROC shall also be required.
