(1294) How to take sale registration for multiple businesses for propietor?

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• published: 04 Jun 2015
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Case AQ - Does a propietor take Multiple sales registrations ? Project - Make Knowledge Free ! Video Link - https://www.youtube.com/watch?v=YZ11SOCHw9A This is a very dicey subject and therefore best dealt with examples ...to make it very simple and effective let us use codes like A1,A2,X1,X2 to define business units (you will understand shortly ) I have a friend , Nitin ... Say , he has sale businesses say Units X1,X2 in Maharashtra , X2,X3 in Gujrat , X4,X5 West Bengal and X6,X7 in Madhya Pradhesh amd all this units engaged in completely different sale business set up under different trade names (X1,X2 may be kirloskar tents , Prakash mart etc etc ) Say, he has service business S1,S2 in Maharashtra , S2,S3 in Gujrat , S4,S5 in West Bengal and S6,S7 in Madhya Pradhesh (1) Let's look at Sale Registration So , Nitin has sale businesss say X1,X2 in Maharashtra , X2,X3 in Gujrat , X4,X5 West Bengal and X6,X7 in Madhya Pradhesh Now for purposes of business in same state , he will get sales registration done for all businesses in the state So for X1,X2 any other he may decide to open up in Mharashtra ,he will apply for one sales registration (TIN number ) and he will get VAT/CST number for collecting taxes on VT /CST sales operating from Mharashtra The purposes fo threshold etc will depend upon X1,X2 and not sales from X3,X4 ,X5 ,X6,X7happenning in other states because sales is a state concept It doesnt matter whether X1,X2 are same or different sale businesses ...one may be electronic store selling electricals and another may be a furniture store (This is because propietor and business are to be supposed same ) in accounting Likewise , for all sale businesses in Gujrat X2,X3he will apply for one sales registration (TIN number ) and he will get VAT/CST number for collecting taxes on VT /CST sales operating from Gujrat The purposes for threshold etc will depend upon X3,X4 sales figure in Gujrat stte and not sales from X1,X2,X4,X5 ,X6,X7 happenning in other states because sales is a state concept Same shall apply when he has to register for West Bengal and Madhya pradhesh So in effect he will get sales registration for all states But within state , for all sales business he will have get unique sale registration number So, 1 TIN number for Maharashtra , 1 TIN number for Gujrat , 1 TIN number for West Nengal and 1 TIN number for Madhya Pradhesh Say he had 10 sale units A1,A2,A3,A4,A5,A6,A7,A8,A9,A10 all in maharashtra Then he would just get one unique sale registration (TIN i.e VAT /CST number ) unique to all this sale units within the state ... Many get confused whether i have to register independtly each sale unit ...answer is a clear no as long as you within the state and the accounting p[rinciple of propeitor and the business being one holds good It is only when you go outside state , that you have to take separate sales registration because sales is a state concept Threshold , input credit etc etc all shall be statewise However if Nitin decises that X2 be in his wife's name , then now his wife shall be considered propietor for X2 and threshold of X2 will be considered separately (Think conceptually what has happened ...we have now introduced a different person ) This is why you see people making their wives propeitors , sometimes partners etc etc ...all this is done for such consideration and not out of love ! Note that my Profit and loss statement will combine figures for all sales and service units and other businesses (if any ) put together (2) Let's look at Service Registration Service is a centre concept ... Coming back to the case , Nitin has service business S1,S2 in Maharashtra , S2,S3 in Gujrat , S4,S5 in West Bengal and S6,S7 in Madhya Pradhesh So as a propietor Nitin doesn't have to get done statewise service tax registrations Nitin can apply for one common service tax registration ST1 for all businesses S1,S2 in Maharashtra , S2,S3 in Gujrat , S4,S5 in West Bengal and S6,S7 in Madhya Pradhesh The threshold for registration requirement will be S1+S2+S3+S4+S5+S6+S7+S8 and not S1,S2, etc etc independently Even if services are of different nature and under different trade name's , it doesnt matter While applying for service tax registration (ST1 ), one has to apply for registration for all units , Note that Nitin's Profit and loss statement will combine figures for all sales and service units and other businesses (if any ) put together to arrive at his Total Turnover and later net income Whatever we wrote here was considering propietor dealer for business, For other types , we shall shortly make other tuts