Regarding VAT and CST registration

[anwarazad]

Hello everyone,

I have a few queries regarding CST and VAT registration. I would really appreciate it, if someone who is experienced would answer these queries.

1. Is it required to have CST/VAT registration if I am selling used items, such as old tape recorders, cd players etc?

2. I believe you need to have a CST/VAT registration for retail selling on ebay. Is this true?

3. I have checked around with some friends who are business men, and had informed me that the cost of registration for CST + VAT is Rs.30,000/- for partnership firm, which includes Rs.25,000/- as deposit, and Rs.20,000/- for sole proprietors, which include Rs.15,000/- as deposit. (The deposits are refundable upon de-registration). Is this accurate?

4. Another information I received regarding requirements to apply for VAT/CST is that, you need to have a business 'premise'. I do not know how exactly they define 'premise'. Can someone explain? Is the requirement of a premise applicable for e-commerce oriented businesses too?

Would appreciate an input from the pinks too, if you aren't too busy.

Thank you so much for your time and your answers.

[alfaastores2011]

Hi,

Im searching for the total amount and place to register for VAT number. some one have told me that it will take abt 30k for a CST and VAT
number. Im not looking out for expected turnover over 5lacs in first year. hence do i still need to register for a VAT number. pls also suggest a proper channel to apply in mumbai.

rgds,
alfaastores

[prabhatkar18]

Hi Everybody!!

Pls. help anybody....it would be most welcome if seller from Maharashtra.

I am going to start selling. Frankly, no idea about cst/vat.

Is it compulsory/legal to have CST/VAT for selling via ebay across the country.????

How much its cost for basic seller??

If i do not have cst/vat ....how i am able to provide bill/invoice to buyers??


Pls. do help!!!!

[pacificheros]

My consultant has told me VAT is applicable on all sales.
Where as there are different rate slab.
Its 4% on Computer & Peripherals & rest all have to be charged 12.5%.
Also would like to point out that, as the amount is directly sent to your bank account, you will have to reply to the IT if any query arises. And the penalty for concealment of income is 200% + interest. Phew

[protos_brands]

DO NOT EVER THINK OF SELLING ANY THING ON EBAY IF YOU ARE NOT SALES TAX REGISTERED DEALER.
YOU CAN NOT SELL EVEN RS.1/- ITEM OUTSIDE YOUR OUN STATE WITHOUT SALES TAX REGISTRATION.
MANY SELLERS ON EBAY IN DELHI HAVE TO STOP SELLING ON EBAY DUE TO HEAVY PENALTIES PUT UP BY SALES TAX AUTHORITIES...
SO BEWARE SELL AT YOUR OWN RISK...WHY DO ANY THING ILLEGAL FOR SMALL PROFIT..

[indiashoppingtimes2011]

Hello Everyone i am really stucked with the legal formalities to sell on ebay i am really shocked that even ebay dosent have any answer for the queries i want to ask u few question please help me by answering .

1. Do i need to pay sales tax on products which i buy without bill like mobile cases , covers, and all small small accessories?

2. Do i need to be a registered company to sell on ebay legally ?

3.What should i do to sell on ebay legally without any problems i mostly sells tablets accessories , cameras battery chargers , etc so do i need to pay sales taxi buy my products from the grey market without bill.

[southernenterprises08]

I am a registered dealer in chennai and I am doing the business for the past 20 years. Tax structure has changed and the VAT form is rather simplified. Value added tax is nothing but claiming the input tax (ITC)available on every purchase. But only a registered dealer can claim the VAT and also if it is within the state. No individual can claim the ITC on the basis of purchase bill.
Regarding the CST any sale that is interstate comes under the CST act. If the buyer is also registered then the seller can bill the product for a tax of 2% and for the rebate that he had given to the buyer he has to give the Commercial tax dept. a form called 'C From' claiming for the rebate he had passed on to the buyer. In this case also no individual can do the same and the seller also cannot do on 2% Tax structure.
Inter state selling is allowed if the local sales tax is collected from the buyer and the same remitted to the dept.
It is really very easy to get a vat no and also to maintain it.
To sell old items I don't think we need to have a registration because it will be sold as is where is condition and no warranty issue involved.

[praveen.1989]

Hi anwarazad,

My name is praveen and I am pursuing CA (i am in the last stage of completion).

Any queries relating to VAT/CST/Service tax can be asked to me.

I will be able to help you because I know the nuances of both ebay and also VAT

mrpraveen@live.com

[indiatrends]

Chill, go for vat no registration after you cross 5 lac Revenue, total fees including facilitation charges by CA is apprx 20K at Delhi:-)

[relioproducts]

My neighbour is a CA here in New Delhi and he is taking Rs.10000 for VAT/CST Registration!!!! If anyone is facing problem in getting their TIN number then he can take advise from him. Message me for his number.

I got TIN Number from him recently.

[popsitag]

anwar, even though you have asked the original question your own information is most comprehensive. The only statement i did not understand is the following:

"Additionally, I was advised that I need not apply for VAT\CST immediately. I was told however that it should be done within 6 months of beginning the business and/or before I reach 5Lakh TO. Also, should note that all transactions should be accounted, right from the very beginning, irrespective of whether you have a VAT/CST registration or not. Better hire an accountant to do the work for ya."


So in the first 6 months how does one issue an invoice for buyer without a vat/cst? Isn't a vat/cst number required on the invoice, or can it just be printed on plain paper with no details of seller.