license under drugs and cosmetics act,1940

[S.C. WADHWA]

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

[DR.MARIAPPAN GOVINDARAJAN]

You are expected to sale only licensed products.

AI Summary

Drugs and Cosmetics licensing: sellers must supply only licensed products, affecting compliance and tax treatment. The company sources drugs and cosmetics from small manufacturers without Ayurvedic or cottage-industry licences and asks whether it must obtain a licence under the Drugs and Cosmetics Act or face higher VAT; the reply states that only licensed products are to be sold, implying an obligation to ensure supplier licences and statutory compliance.