I plan to start up a company 'XYZ' (Sole Proprietorship Firm) which would be in manufacturing and wholesale (only) of ready made garments (shirts and denims). The business model is as follows :
1. Purchase of cloth and other accessories through local suppliers. (Registered as well as unregistered).
2. Free issue of these materials to local craftsmen/tailors (all in the unorganized sector) and payment of a suitable amount as stitching charges. (All machinery/workshop premises owned/leased by them).
3. Wholesaling of the finished goods (shirts/denims) through distributors or directly to retailers.
My queries are as follows :
1. Which indirect taxes/duties will I be liable to pay. Accordingly do I need to register for ECC/TIN Number? Note that my co. does not own any factories.
2. Will I be given the ECC/TIN nos when I register under The Companys Act?
3. On what basis will I have to pay the direct taxes?
Thanks a lot in advance.