Sir, request for advice.
One of my friend has a Company (say A) already registered under the Companies Act and having its own Excise and VAT registration. However for the past 2-3 years no activities were happening in this Company.
We are now planning to do online marketing through a partnership firm (say B). The firm B will do online marketing of varoius products but it currently neither has VAT registration nor a PAN Card. My friend is suggesting that we use the Company for procurement and billing purpose. The Company will procure, bill and collect payments and the margin (profit) earned by the Company to be transferred to the partnership firm as management fees/selling commission.
Is it possible keeping the various statutes and requirements of VAT and Income Tax in mind.
Thanks in anticipation,
R. Basu
