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Want to sell clothes to local retail stores. What licenses and taxes?


17-Sep-2023 (In Tax Law)

sir, i am a seamstress in alwarpet, chennai. i wish to sell clothes to local retail stores. can you tell me if i need a license, what taxes i would need to pay or add in my invoices, etc.? thanks.

Answers (2)

Answer #1
859 votes
Dear querist

You would require VAT license if you want to sell only within your state and CST if you want to sell across country. There is a threshold limit in every state till (Financial year wise) which you can sell goods without license. Also you need to see if your goods are exempted or not and what rate of tax is to be charged, if any.
Answer #2
519 votes
Hi Sir,

The tax attracted towards readymade garments is 5% VAT. The same needs to added in the invoice. Secondly you need to to register your firm in the registrar's office. And they will issue you a TIN number.

After which you may bill your readymade garments.

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