[Urgent] Procedure for Shop Establishment Act & Vat/Cst No

Status
Not open for further replies.
Deadman20

Deadman20

Apprentice
Hello!

Can anyone here assist me with the Procedure to get Shop Establishment Act & Vat/Cst No

I am planning to enter into e Commerce market where I will be selling mostly mobile cases / covers / screen guards & cables which will include computer cables like adapter, sata cable, etc all those small things which don't put up a big hole in my pocket.

At first, I will start from my home, then in future if required will go for office.
already in touch with distributors regarding accessories & they are ready to supply me certain quantities..

After successfully filling up a seller page on amazon, I received a call from amazon executive stating that they will be needed Vat / Cst no. without that, I won't be able to sell on Amazon.. same is the case of flipkart and snapdeal.

On enquiry, I get to know that for Vat / Cst no, i need to have an Shop establishment Act and current account with bank

Bank needs Shop establishment Act document to open up a current account.

What is the easiest process to get both the documents & how many days it will take to get the documents,
Since I will be operating from home as a starter, hope it won't be a major concern.
Paying a rent for office, will put a big hole in my pocket.

please forgive for my poor English.
 
Not directly answering your query but one thing comes to my mind that if you get a "shop establishment certificate" on your home address, the municipal corporation may mark your home as a commercial establishment leading to increase in tax and electricity charges.

You should get in touch with a professional CA/CS he will be able to help you out.
 
moshel said:
Not directly answering your query but one thing comes to my mind that if you get a "shop establishment certificate" on your home address, the municipal corporation may mark your home as a commercial establishment leading to increase in tax and electricity charges.

You should get in touch with a professional CA/CS he will be able to help you out.
Click to expand...

will my home be considered as a commercial apt

I have heard about many sellers who have started from home to sell their products on e commerce website & then as the business increases they have opt for office.
 
I am the same boat as Yours
Right now i am selling on ebay since last 1 years profit is not much coz of the competitive market.
This is not my primary business just secondary business which i do for my extra expenses
I m doing it right now from my place,i have spoken to CA last night for the same
You can ask your society to give u NOC for Gumastha licence as you will be doing business from home..
Later from the Gumastha u can open a current account,rest the CA will do the VAT and CST Process
My small advice will be dont jump for VAT,first c how much profit you can make selling your products..
Do further research check online prices from different seller,calculate your rough profit..
Later go ahead...
Right now u can sell on ebay as they dont ask for VAT NO And CST Etc
Check the response you get later go ahead
 
  • Like
Reactions: Deadman20
Exactly, profit is not that much, reason is everyone wants to sell their products quickly. without caring about proper calculation of profit.
Infact e commerce website like Amazon, flipkart will display those products first which have lesser price.

One can easily sell on eBay without the need of current a/c, shop & establishment act, Vat / Cst no
but on other ecommerce website, have to go through above procedure

What are the maximum limit of transactions can be done in savings account in an financial year without getting the attention of Income tax dept?
what are the documents required to open Gumastha licence ( shop & establishment act)?
 
Last edited:
Deadman20 said:
Question here is, Is it possible to start from home or I should have office for the shop and establishment act process?
Click to expand...

its possible to start from home.

Deadman20 said:
Exactly, profit is not that much, reason is everyone wants to sell their products quickly. without caring about proper calculation of profit.
Infact e commerce website like Amazon, flipkart will display those products first which have lesser price.

One can easily sell on eBay without the need of current a/c, shop & establishment act, Vat / Cst no
but on other ecommerce website, have to go through above procedure

What are the maximum limit of transactions can be done in savings account in an financial year without getting the attention of Income tax dept?
what are the documents required to open Gumastha licence ( shop & establishment act)?
Click to expand...

You can do transactions upto 20k total for savings account . above that I T takes notice.

It all depends on your society for the NOC. Most dont give because of risk involved. Check link I gave earlier for documents required.
You can go to local municipal corporation office and they can guide you also.
 
If VAT/CST is not a requirement anymore, then you can very easily get a current account with a private bank. I have one with HDFC bank which allows me to do cash transactions worth 4L each month.
Private banks easily open single proprietor current accounts with no need for a company name etc.
 
rdst_1 said:
If VAT/CST is not a requirement anymore, then you can very easily get a current account with a private bank. I have one with HDFC bank which allows me to do cash transactions worth 4L each month.
Private banks easily open single proprietor current accounts with no need for a company name etc.
Click to expand...

Same response I got from HDFC Bank, where they need either ITR form or Shop establishment act license to proceed with current account
 
Deadman20 said:
Looking to open it under company name or if I open in my name will it be possible without ITR form or Shop establishment act license
Click to expand...

Open a personal current account. They won't ask for ITR or anything else. In my case it helped that I was also giving them a FD for 5L.
 
Apply for SSI Certificate . This will allow you to use home as office - > http://www.dcmsme.gov.in/howtosetup/grgxx01x.htm

Based on this ask a known bank manager to open a current account for your proprietorship. A PSB will be far easier. ICICI/HDFC want only the creamy high value accounts. SBI/Bank of Maharastra/SIDBI/CorpBank have a very heavy MSME push, and will easily open your account.

Once you get this VAT/CST no is very easy. Don't know exactly how, but its similar to the Service Tax Procedure.
 
Status
Not open for further replies.
Top Bottom