New Business Permissions

[Raf Deys]

Dear Experts,

I am planning to start wholesale and retail business of ready-made garments

Business will be based in Andhra Pradesh, but it will be spread across several states.

What are all the registrations that I need to do?

Do I need to obtain TIN/VAT from each state where I am planning to sell my garments?

This is pretty basic question but I am unable to find satisfactory answer online. I also tried asking in sales tax office in our town, but those people will not talk anything useful unless I pay 'fees' which I cannot afford.

Any help is appreciated.

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion you have to obtain registration in respect of each State since the rate of tax and procedure are different from one State to another and your sales will also have inter sales.

[Ganeshan Kalyani]

I would like to ask that whether business would be set up in each state or selling will be from Andhra Pradesh where main business would be based. If only selling from AP then no need to register with every state law but only get an AP TIN and CST number and interstate sale can be effected.

AI Summary

Sales tax registration: determine if out of state presence requires separate VAT registrations or only home-state TIN and CST. Question whether a garments wholesaler/retailer based in one State but selling across multiple States must obtain VAT/TIN registrations in each State. One view advises separate registration in each State where taxable activity occurs because tax rates and procedures differ and inter state sales may create local obligations. An alternative view advises that if sales are effected only from the home State without establishing presence elsewhere, obtaining the home State TIN and central sales tax registration for interstate sales suffices.