AI Drafter 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
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
VAT registration responsibility: clarify whether the principal or sole selling agent must register and file VAT returns. Appointment of a sole selling agent raises indirect tax and accounting issues: which party must obtain VAT registration and file returns, whether the principal can opt for the composition scheme if turnover is below limits, how transfers of goods to the agent are to be accounted (sale, consignment, or stock transfer), the valuation basis for such entries (cost versus market/agent sale price), and the required invoicing and inter-party documentation. Specialist Company Secretary and tax consultant advice is recommended for compliance. (AI Summary)
