Dear Experts,
A daughter of our one director of the company doing sale and purchase business of drugs and cosmetics through shop in Delhi and paying vat tax @5%. From whom she is purchasing goods are small manufacturers not having any ayurvedic license or cottage industries license.
Now my query is whether we have to get any license under drugs and cosmetics Act or to pay higher rate of vat tax in the absense of license. Please give your expert opinion with any case law or notifications etc.
REGARDS,
WADHWA
Director's Daughter Needs License for Drug and Cosmetic Sales; Unlicensed Products Require Compliance with Licensing Rules. A company director's daughter is conducting a business involving the sale and purchase of drugs and cosmetics in Delhi, paying a VAT of 5%. The products are sourced from small manufacturers lacking ayurvedic or cottage industry licenses. The query seeks clarification on whether a license under the Drugs and Cosmetics Act is necessary or if a higher VAT rate should be applied due to the absence of such licenses. The response advises that only licensed products should be sold, implying the need for compliance with licensing requirements. (AI Summary)
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