Hello sir, I need you help in sorting out my doubts. I want to start a retail business, mostly clothes, i do NOT have a setup as its an experiment. I don't want to register it for now but would like to be very clear on below.
1. When should i register as sole proprietorship, will it depend on my turnover?
2. can i issue invoice without registering my business?
3. what other payment mode i can use apart from cash? i don't have current account..
Asked 1 year ago in Income Tax from Delhi, Delhi
1. No its dont depend on turnover but it is better to convert it Sole proprietorship
2. Yes.you should convert it on Sole proprietorship.
3. Please open a bank account in the name of sole proprietorship and do transaction with bank as cash payment above 20k disallowed in income tax act.
Talk to Deepak Rathore
CA, New Delhi
5.0 on 5.0
1) If you do not want to register now then you will have to mandatorily register when you cross the limit of turnover exempt from VAT in delhi. The limit is Rs. 20 lacs for VAT in delhi. Therefore, you will have to register on reaching Rs. 20 lacs if your item is not otherwise exempt from VAT.
However, you may also have to register now in order to open a bank account as bank generally do not open a bank account without having a registration for proprietorship.
2) You can issue invoices without any registrations.
3) You can use bank if you open a bank account. You could accept credit card payments and debit card payments. You can also online transfers. I would suggest you open a bank account as it better for keeping a record of transactions.
Talk to Pratik Anand
CA, New Delhi
4.7 on 5.0
1. Compulsary registration is required if your turnover crosses Rs. 20lacs or you make interstate purchase or sale.
2. You can issue invoices but please donot colllect any taxes.
3. Use your savings account. However, it is not advisable.
Talk to Shashank Surana
4.3 on 5.0
In your present case you have to register for starting the business. We cannot suggest otherwise.
Talk to Shyam Sunder Modani
4.9 on 5.0
1 There is no specific registration for doing business as a sole proprietor. However, to do the business, you need trade name and trade licence under your municipal laws. Turnover is not a criteria for starting your business as a proprietor.
2 If you are issuing invoices without registration as a dealer with the commercial taxes department, you will be considered as an unregistered dealer and you will not be entitled to claim any input credit on your VAT. If your turnover is more than Rs 5 Lakhs ( you need to check the exact figure with your local commercial taxes department), you will have to register as a dealer, whether your business is a proprietorship or a partnership.
3 You can accept payment by credit card / debit card also. If your cheque payments are few, you may still operate with your SB account, otherwise you need to have a current account.
Talk to B Vijaya Kumar
5.0 on 5.0
NO NEED TO REGISTER BEING RETAIL OF CLOTH (NOT READYMADE CLOTH)
FOR READYMADE CLOTH IF NO INTER STATE SALE & TURNOVER IS LESS THA 20 LACS NO REGISTRATION REQUIRED
U CAN ISSUE INVOICES
U CAN DO IF FROM YOUR SAVINGS BANK A/C
Talk to Vijay Kapoor
3.5 on 5.0
???1. When should i register as sole proprietorship, will it depend on my turnover?
Registration under VAT depends upon the limit prescribed under the state in which you are going to have the business.
???2. can i issue invoice without registering my business?
???3. what other payment mode i can use apart from cash? i don't have current account.
Online Payments, Debit/Credit Card, Cheque, etc. Current Account is not mandatory for experiment, but preferably to have when the business is growing.
CA. Rajeev P T
Rajan Chakravarthy & Associates, Chennai
*****This Opinion is based on stated facts and the legal position as on date. The views expressed may not be relevant where there is any change in facts or law. This Opinion is not in the nature of an assurance that an alternative view or interpretation cannot emerge.
Talk to Rajeev P T
5.0 on 5.0