TaxTMI 
TaxTMI 
A Pvt Ltd Company wishes to appoint a sole selling agent for the wholeof India and for all of its of products. My queries in this regard are:
1. Who is required to get VAT registration and file return, the co or the sole selling agent or both?
2. Can the Co opt for Composition scheme, if turnover is less than the specified limit?
3. When goods are transferred to the sole selling agent then What entry is to be passed?
4. At which price is the entry required to be passed ie whether at the price at which the agent will sell the products to the market or atCost?
5. Please give reference of a company which has appointed a sole selling agent?
6. How is the invoicing to be done, both for Co and the Agent?
Any advice, presentation or useful link would be very useful.
Best regards,
Souvik Ghosh
Sole Selling Agent
Souvik Ghosh
Company Seeks Clarification on Sole Selling Agent Appointment: VAT, Composition Scheme, Accounting, and Invoicing Explained A private limited company plans to appoint a sole selling agent for its products across India and seeks clarification on several issues: VAT registration and return responsibilities for the company and agent, eligibility for the Composition scheme if turnover is below a certain limit, accounting entries for goods transferred to the agent, pricing for accounting entries, examples of companies with sole selling agents, and invoicing procedures for both the company and agent. A respondent advised consulting a company secretary and tax consultant for detailed guidance. (AI Summary)