Companys law
oyayubihime
(Querist) 13 May 2012
This query is : Resolved
I'm a Japanese and a director of Pvt Ltd company in India.
This company is invested by Japan.
1. Can we do trading business according to Indian law? We are manufacture at present, but we'd like to close it and start only trading.
2. Suppose, our company purchase goods from another state company A. We got payment from Japan and pay to company A. Company A send goods direct to Japan. Is it allowed?
3. In this case, Is this business under sales tax or service tax?
Kindly tell me.
Suhail A.Siddiqui
(Expert) 13 May 2012
1. Since u are manufacturer, then there is no problem to run trading business but you can not enjoy manufacturing benefits.
2. It is allowed and you can purchase such goods without paying VAT.
3. This is trading business since business is in your company name it will be business
Suhail A.Siddiqui
(Expert) 13 May 2012
1. Since u are manufacturer, then there is no problem to run trading business but you can not enjoy manufacturing benefits.
2. It is allowed and you can purchase such goods without paying VAT.
3. This is trading business since business is in your company name it will be business
B.Chakrapani Warrier
(Expert) 15 May 2012
1. Can do trading business if the Memorandum of Association of the company permits to do trading. Foreign Exchange Management Act also may be referred to know whether the item traded is a permissible commodity for foreign investors.
2. Again if MOA permits, the company can do inter state purchase and export to Japan for which Value Added Tax registration and Central Sales Tax Act registration is required.
