Shakti (Founder) 16 April 2012

Ecc/tin registration for a start-up

I plan to start up a company 'XYZ' (Sole Proprietorship Firm) which would be in manufacturing and wholesale (only) of ready made garments (shirts and denims). The business model is as follows :

1. Purchase of cloth and other accessories through local suppliers. (Registered as well as unregistered).

2. Free issue of these materials to local craftsmen/tailors (all in the unorganized sector) and payment of a suitable amount as stitching charges. (All machinery/workshop premises owned/leased by them).

3. Wholesaling of the finished goods (shirts/denims) through distributors or directly to retailers.

My queries are as follows :

1. Which indirect taxes/duties will I be liable to pay. Accordingly do I need to register for ECC/TIN Number? Note that my co. does not own any factories.

2. Will I be given the ECC/TIN nos when I register under The Companys Act?

3. On what basis will I have to pay the direct taxes?

Thanks a lot in advance.

Regards,

Reply Follow

2 Replies

Harendra Kumar (A Practicing Lawyer) 28 November 2013

Sir,

Your business is non excise-able product but you have to taken other License or Registration regarding your business i.e. PAN & TIN whichis applicable your Term & Condition.

Ramesh Chandra Verma (advocate) 22 December 2013

There is no Excise duty when no cenvat credit taken, hence no registration of excise. Pl. ensure no service tax is leviable on you under Reverse Charge mechanism.

R C Verma 09810525780 / 0888 281 281 8