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It?s an old hat but always work, Franchising, since the economic liberalization of 1991, many foreign companies with strong brand names have established a presence in India through franchising like Hertz, Radisson, Kentucky Fried Chicken (KFC), Domino’s Pizza, Thank God it’s Friday (TGIF), Pizza Hut etc., In fact, Indian companies with strong brand recognition are also using the franchising route like MRF, NIIT, Apollo Hospitals. Yo bro, What?s franchising? The Blacks Law Dictionary defines a franchise as a license from the owner of a trademark or trade name permitting another to sell a product or service under that name or mark. There are at least two parties involved: (a) the franchisor, who lends his trademark; and (b) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor?s. Breaking down the Characteristic Features of business like this type (a) A franchise arrangement (b) The franchisor should have developed a business system or format. (c) The franchisee makes a substantial initial capital (d) The franchisor trains the franchisee (e) Once the franchisee?s business commences, the franchisor support available to the franchisee (f) The franchisor also regularly supervises the franchisee?s business operations. (g) Consideration is paid by the franchisee to the franchisor for the rights licensed Enriching em with types of Franchising Agreements: (a) Invention Licensing Agreement: Inventor (Franchisor) firstly patents the invention and license the patent and design rights and the manufacturing and marketing of the invention. (b) Trademark Licensing Agreement: Franchisor (the owner) of a trademark can grant a licence to another Franchisee to use the trademark on goods, which are associated with that trademark. This type of an agreement may be for the manufacture, preparation, marketing, presentation, and sale of goods. (c) Character Merchandising Agreement: In such an agreement, the name of a famous entertainment or sports personality or probably a fictional or graphical character is licensed to be used on certain products. (d) Dealer or Distributor or Marketing arrangements: Franchisee adopt a business operations model of franchisor. Examples; in cases of dealerships with automobile companies, food and consumer goods, petrol pumps and gas stations. What are the ?good to take stuffs? in doing a business on franchise model? Capitalizing and benefiting from the Franchisor brand name. Elimination of unnecessary expenses. Support from the franchisor while operating the business. Benefit from the franchisor?s advertising campaigns. Benefit from the franchisor?s negotiating and bulk purchasing power. Alrighty, Any Trade-offs? Imposition of controls and supervision by the franchisor. Heavy initial capital investment, in addition to consideration for using the franchisor?s brand. Franchisor?s policies that would be a directly applicable. Know that you are well versed with the evergreen Franchising model, Connect with us and let?s get you started. Right Away!      
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You sure know that efforts are being made to replace the existing indirect tax system with a unified Goods and Services Tax system (?GST?). But GST is expected to knock the door sometime late July of this year, till then these indirect taxes are going to be a part of our lives. Without any further due, let?s get you on to the important stuffs.
  1. Value Added Tax (VAT): Imposed on the sale of goods within the particular state and rates may vary from 0%, 1%, 4%, to 15% although there may be further variations depending on the state. Liquor VAT Rate is higher at least in Karnataka to 28%
 
  1. Service Tax: Is levied by the Central Government under the service tax legislation on all but certain excluded taxable services and is generally required to be paid by the service provider. Currently the rate of service tax is 15% (inclusive of cess). This rate is computed on the ?gross amount? charged by the service provider for the taxable services rendered by him. When a taxable service is provided by a person from outside India and is received by a person in India, the service rendered is chargeable to service tax in India and payable by the recipient of services.
 
  1. Central Sales Tax (CST): Applicable on the sale of goods in the course of inter-state trade or commerce. CST is not applicable on direct imports or exports or the purchase or sale effected during imports or exports. The process of phasing out CST commenced with a reduction in the CST rate is 2%.
 
  1. Customs Duty: Customs duty is a duty that is levied on goods that are imported into India and exported from India. Customs duty is levied by the Central Government. While the highest rate of customs duty for import of goods is 28.85%, the actual rate may vary per the product description.
 
  1. CENVAT: Is a duty of excise which is levied by the Central Government on all goods that are produced or manufactured in India, marketable, movable and covered by the excise legislation. The peak duty rate 8%lthough there are other rates ranging upwards, or based on an ad valorem / quantity rate. The rate of CENVAT varies depending on the product description.
  Startup entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly.

For any Legal and Accounting support, Happy to help you, let us talk at Wazzeer.

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  1. What is copyright?
A copyright is used to protect IP that are in an original literary, dramatic, musical or artistic work, cinematograph films, and sound recordings. However, no copyright subsists in a cinematograph film if a substantial part of the film is an infringement of the copyright in any other work. A computer programme is treated as a ?literary work? and is protected as such.
  1. Can an algorithm be copyrighted?
A computer programme is treated as a ?literary work? and is protected as such by copyright.
  1. Is Copyright Registration Compulsory?
Registration is not a prerequisite for acquiring a copyright in a work. A copyright in a work is created when the work is created and given a material form, provided it is original.
  1. Should I Copyright again when doing business in other countries?
India is a member of the Bren convention and Universal convention. As Per that any work first published in any country which is a member of any of the above conventions need not file copyright again.
  1. What Rights does Copyright Provide?
The creator of a work can prohibit or authorize anyone to: ? reproduce the work in any form, such as print, sound, video, etc; ? use the work for a public performance, such as a play or a musical work; ? make copies/recordings of the work, such as via compact discs, cassettes, etc.; ? broadcast it in various forms; or ? translate the same to other languages.
  1. How long is copyright valid?
60 years.
  1. Can I assign Copyright to third party?
Yes, unless such assignment is in writing and signed by the assignee and the assignee.
  1. What if there occurs copyright infringement in India?
The Copyright Act provides both civil and criminal remedies for copyright infringement. When an infringement is proved, the copyright owner is entitled to remedies by way of injunction, damages, and order for seizure and destruction of infringing articles.
  1. Can the copyright by someone else be used for public purpose?
Yes, it can be but by giving prior notice to the owner, and essentially with ?Statutory License? and ?Compulsory License?. 10. Alrighty, What is the procedure to register Copyright? To know the process of registering a copyright, click here Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you!    
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  1. Business Registration: You can set up such business as a PVT. LTD. Or LLP or OPC company.
  1. KYC Norms: KYC Norms are the norms set by the RBI that require banks to continuously monitor their customers? transactions.
  1. Abide by the principal laws concerning Bitcoin:
    1. The Constitution of India, 1950
    2. The Foreign Exchange Management Act, 1999 (?FEMA?)
    3. The Reserve Bank of India Act, 1934 (?RBI Act?)
    4. The Coinage Act, 1906 (?Coinage Act?)
    5. The Securities Contracts (Regulation) Act, 1956 (?SCRA?)
    6. The Sale of Goods Act, 1930 (?Sale of Goods Act?)
    7. The Payment and Settlement Systems Act, 2007 (?Payment Act?)
    8. Indian Contract Act, 1872 (?Contract Act?)
  1. Cross border transfer of Bitcoin: FEMA regulates all inbound and outbound foreign exchange related transactions, in effect regulating the capital flows coming into and moving out of the country.
 
  1. Taxation of Bitcoin: In India, taxes are levied either by the central and the state governments. Taxes may be on income or expenditure. When taxation is on income, it may be on Bitcoin representing such income. On expenditure meaning cost of acquiring Bitcoin, such as Central Sales Tax, Value-Added Tax or Service Tax.
  1. Income Tax Taxation of income: In India income is governed by the provisions of the Income Tax Act, 1961 (?ITA?). Under the ITA, residents are subject to tax in India on their worldwide income, whereas non-residents are taxed only on income sourced in India.
  1. Central Sales Tax / Value Added Tax: For a Bitcoin transaction to be taxed under the CST Act, there should be a sale.
  1. Service Tax: Service tax is levied by the central government at 12.36% on all services provided in India except certain specified services. Service providers can take credit for service tax paid on input services utilized and for excise duty paid on inputs and capital goods (barring certain specified inputs). Services provided outside India are not subject to service tax in India. Typically, services are provided in India if the service recipient is in India. The 2015 Budget proposes to increase the rate of service tax to from 12.36% (inclusive of cesses) to 14%.
  1. Trademark: Trademark protection for the word marks that include the term ?Bitcoin?, and various Bitcoin logos is essential for financial institutions dealing in Bitcoin transactions and online payment systems. Bitcoin platforms / Bitcoin exchanges represent marks with various visually or phonetically similar Bitcoin marks, by doing so you can trademark.
  1. Patent: Under Indian patent law, a mathematical or business method or a computer program per se or algorithms are not inventions and are hence not patentable in India.
  1. Copyright: Bitcoin are protocol and software that are published openly and any developer around the world can review the code or make their own modified version of the Bitcoin software. No exclusivity is generally claimed in open source software. Hence, it cannot be copyrighted.
  1. Privacy Policy: Abide by The IT Act, that protects items of sensitive personal data or information (?SPDI?).
  1. Terms of service: You are required to have the Terms of services document in place, that has all the required information about services like Age verification and other rules.
  1. FDI Regulations: Companies which only provide online services i.e.., Bitcoin may be categorized either under the automatic category or under the category of a non-banking financial services company.
  1. International criminal law: Due to financial security issues and to avoid cyber attacks, it is important that companies pay due considerations while doing business on international soil.
  In case, you are thinking of getting some free advise from an experienced Lawyer (and Accountant), checkout Counsel application of Wazzeer. For any Legal and Accounting support, Happy to help you, let us talk            
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What is Trademark? Trademark protects a business or brand and distinguishes it from others. It also gives right to the mark and allows the holder to file lawsuit against infringers. It has an unlimited term but must be renewed after every 10 years.?The TM Act allows for the registration of service marks and three-dimensional marks as well. In India, trademarks are protected both under statutory law and common law. ?mark? is defined to include ?a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or, combination of colors, or any combination thereof.? Other Situations:
  • Sound Tacks: Trademark protection to a sound mark. Which can be represented as graphical representation. sound marks can be represented on paper either in descriptive form or as traditional musical notations
  • Other Graphical Representations: oscillogram; spectrum, spectrogram and sonogram are now being accepted in other jurisdictions.
Can I trademark an Idea? No. You cannot do that, but if you could represent it in graphical representation maybe you can. Who can Apply? Any person claiming to be the owner of a trademark used or proposed to be used by that person can file an application for registration. The application may be made in the name of the individual, partner of a firm, a company, any government department, a trust, or even in name of joint applicants. Domestic and international applicants are treated at par. Does the Trademark need to be in prior use? Prior use of the trademark is not a prerequisite for filing application or its registration. However, in the case of descriptive marks, it may be required to be in use. Do I need to do Trademark research? Prior search for a trademark is not a prerequisite for filing an application, it is advisable to carry out a search and maintain the search results. Can I assign Trademark to someone else or to some other company? Registered trademark can be assigned or transmitted with or without the goodwill of the business concerned. Can I License the Trademark? Yes, with a written agreement and if such user satisfies the prescribed conditions. Also, Owners of Indian registered trademarks, who are located abroad, having no presence in India, can use their trademarks in India by granting licenses to the Indian parties. What are the rights Conferred by Registration? The registration of a trademark gives the registered owner the exclusive right to use the trademark and to obtain relief if infringed. Registration acts as a public notice to others, informing them that they should not use the trademarks which are registered or pending for registration. How far is the Trademark Recognized by the Foreign countries? The courts in India have recognized the trans-border reputation of foreign trademarks and trade names and the importance of their protection. But, as such you will have to register the trademark again in that foreign country to avoid litigation. Alrighty, What?s the process of registration? Before you start registration of your trademark, you need to conduct a trademark search in which you need to search the trademark database to check whether there is any other similar or identical trademark. After the completion of trademark search, Trademark registration can be filed with the fees in the Trademark Registrar. Then the registration application is allotted to a Trademark officer, who decides whether the application is accepted or rejected. If the trademark registration application is rejected, the applicant can appear before the officer to address the problem occurred at a given date and time. – See more at: http://blog.wazzeer.com/trademark-registration-process/#sthash.XVEA4yWV.dpuf What are the documents that are required?
  • Date of using the Logo/Tagline (Any supporting document for the same)
  • Power of Attorney signed by the applicant
  • Soft copy of the Logo/Tagline
Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you,?let us?talk     ? ? ? ?  
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  1. Business Registration: You can set up such business as a PVT. LTD. Or LLP or OPC company.
  2. Abiding IT Act: Protection of the identity of a person or the Data Protection related compliance.
  3. Privacy Policy: It is Important for every e-commerce platform is to maintain the privacy of its users. Although a?privacy policy?is technically a legal document, great effort should be made to craft a document that is both accurate and easy to understand, obscuring hidden clauses in reams of text is not acceptable.
  4. Payment Gateway Compliance: Which is mandatory for every ecommerce startup.
  5. Abiding the Consumer Protection Act 1986 (?CPA?): Protects the relationship between consumers and service/goods providers.
  6. IP in E-Commerce: A company that commences e-commerce activities at first must get its domain name registered. Trademarking the name would be the wise option.
  7. Abiding International jurisdiction: Every country has its own set of compliance that businesses outside the country should follow.
  8. Vendor Agreement: Signing a vendor agreement in which the terms and conditions between a buyer and a seller are agreed up front, makes sure that both the parties are clear about each other and what is expected of them reducing the risk of legal disputes down the road.
  9. Terms of Service: Website Terms and Conditions are essential in, among other things, establishing the ownership rights of the website operator in and to the applicable content and offerings featured on the website, limiting the liability of the website operator.
  10. Service Level Agreement: An?SLA?is an?agreement?between you?and some service?provider, such as your web hosting provider, telephone provider, and so on. It outlines each party’s responsibilities in the event of a problem and defines how the?service?provider classifies and resolves problems.
  11. Transfer Pricing Framework: Commercial transactions between related entities of multinational corporations increasingly dominate the sphere of world trade.
  12. VAT Registration: VAT registration is required when you are in business of any goods or products that can be felt or touched and exceeds specified amount of annual turnover. Specified amount of turnover depends on the state regulations which are INR 5 to 10 lakhs.
  13. Indirect Taxes: Various indirect taxes are levied at the central and state level. Like: Service Tax, Sales Customs Duty and Central Excise Duty.
  14. Return Policy: Having a well thought out?return policyclearly displayed in your store is key to attracting and keeping?your customers. As online shopping becomes more commonplace,?return policies?become even more?important.
Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you,?let us?talk            
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Shareholders meetings help facilitate shareholders? engagement with company management and the board of directors. Resolutions passed at all such meetings are binding on the company and its stakeholders. ? Is the Shareholder powerful at all? Yes he is, reason being:
  1. Passing resolutions at shareholder meetings
  2. Voting out directors
  3. Electing to sell their shares
  4. Exercising minority buy-out rights ?
  5. Requesting the company in writing to provide information held by the company ?
  6. Requiring the company to provide the shareholder with a statement of the shares that he or she holds, and of the various rights, privileges, conditions and limitations that attach to those shares
  7. Participation in various decisions requiring the unanimous assent of shareholders (see below)
  8. Alterations to the constitution
  9. Alterations to shareholders’ rights
  10. Decisions involving major transactions
  11. Decisions involving remuneration and other benefits
Shareholders meetings help facilitate shareholders? engagement with company management and the board of directors. Resolutions passed at all such meetings are binding on the company and its stakeholders. Is the Shareholder powerful at all? Yes he is, reason being: Passing resolutions at shareholder meetings Voting out directors Electing to sell their shares Exercising minority buy-out rights Requesting the company in writing to provide information held by the company Requiring the company to provide the shareholder with a statement of the shares that he or she holds, and of the various rights, privileges, conditions and limitations that attach to those shares Participation in various decisions requiring the unanimous assent of shareholders (see below) Alterations to the constitution Alterations to shareholders' rights Decisions involving major transactions Decisions involving remuneration and other benefits (infographic) Shareholders own the company, is it important to know all the Rights and Duties of Shareholders during meeting? Ofcourse yes, Shareholders instead of just worrying about the share value, should step up putting their inputs in all ways in making the business successful These are some rights a shareholder can exercise during the meeting: You can see the Annual report, meeting notice, and all supporting documents to formulate questions and send them in advance to the management. You can request inclusion of an agenda item with prior notice and prescribed process You have the right to appoint a proxy/authorized representative for the meeting You have the right to call for a meeting (conditions applicable) You have the right to review company documents You can propose amendments You can vote on a resolution You can scrutinize or Inspect minutes of the meeting and voting results You can bring to the attention of the board any identified issues in the meeting. Shareholders own the company, is it important to know all the Rights and Duties of Shareholders during meeting? Ofcourse yes, Shareholders instead of just worrying about the share value, should step up putting their inputs in all ways in making the business successful These are some rights a shareholder can exercise during the meeting:
  1. You can see the Annual report, meeting notice, and all supporting documents to formulate questions and send them in advance to the management.
  2. You can request inclusion of an agenda item with prior notice and prescribed process
  3. You have the right to appoint a proxy/authorized representative for the meeting
  4. You have the right to call for a meeting (conditions applicable)
  5. You have the right to review company documents
  6. You can propose amendments ?
  7. You can vote on a resolution
  8. You can scrutinize or Inspect minutes of the meeting and voting results
  9. You can bring to the attention of the board any identified issues in the meeting.
 
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Did you know? Before March, 2017 you have all the chances to do arrangements to reduce tax liability. Startups and other businesses have already started to work on this. And, It is mandatory for all corporate assesses and partnership firms who are liable for audit u/s 44AB of the Income Tax Act to submit the Income tax returns electronically by July, 2017. Documents to be assessed: Documents like TDS certificates/tax paid challans/ profits and loss account/balance sheet etc. shall be produced before the Assessing Officer whenever he calls for the same. Tax Audit Report, is to be obtained before the due date of filing of the return. The same is not required to be attached with the return of income. As provided in section 184 of the Act, In case of first return of a partnership firm or in case of change in the constitution of the partnership firm, certified copy of the partnership Deed is required to furnished along with the return of income so to get assessed as a partnership firm. Since no enclosures are to be furnished with the return, certified copy of the Deed should be furnished separately with the Assessing officer. Forms to be used by different types of assesses: ITR-1: For Individuals having Income from Business or Profession. Also, If you have a profit of more than 8% of investment no Audit by CA. If profit is less than 8% or suffered loss than Audit must be made ITR-2: For Individuals and HUFs not having Income from Business or Profession ITR-3: For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship ITR-4: For individuals & HUFs having income from a proprietary business or profession ITR-5: For firms, AOPs and BOIs ITR-6: For Companies other than companies claiming exemption under section 11 ITR-7: For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) There are three ways to file returns electronically: Option 1: Use digital signature in which case no paper return is required to be submitted Option 2: File without digital signature in which case ITR ? V form is to filed with the department. This is a single page receipt cum verification form. Option 3: File through an e-return intermediary who would do e-filing and also assist the assessee to file the ITR Form Procedure to be followed before filling up the form: It is advisable to keep a checklist with you along with your audit program while on audit. It is important to have the signed audit report & financial statements while filing up the forms. Following details, in case of Individual:
  • Full and Correct Name of the assessee
  • Correct PAN
  • Full address with city, state and pin-code
  • Date of formation / Birth
  • Residential status
  • Nature of business
  • Bank A/c. No. & MICR code
Following details in respect of all the partners:
  • Name,
  • Address (with city, state & pin-code),
  • Percentage of share and
  • PAN
Few ways to reduce Tax Liability:
  1. Savings account:
  • if you have more than one credit card, total payment for both more than Rs.2 Lakh but each card less than Rs.2 Lakh, then information not required to be furnished.
  • payment to each mutual fund less than Rs.2 Lakh
  • Payment more than Rs.5 Lakh for purchase of bonds or debentures issued by a company or institution or RBI Limit of Rs.5 Lakh is qua company/institution
  • Payment for acquiring shares issued by a Company.
  1. Details of brought forward losses i.e. head of loss, year of loss, are to be furnished in the return.
  2. Nature and amount of exempt income earned
  3. Saving under section 80 C (Annuity plan for LIC, PF etc.)
  4. Saving under Section 80 D (Medical insurance)
  5. Property Loan
  6. Donations
  7. Long term capital gains from sale of equity shares
  8. Rent paid for office premises
  9. Travel, hotel expenses in name of the company,
  10. Expenses incurred on phone, vehicles, parking, driver, toll charges, etc
  11. Premium paid on medical insurance for self, spouse, children, parents;
  12. Salary paid to staff, even if they are family members,
  13. Expense that occurs prior to the commencement of business can be deducted from the taxable income under Section 35D as Pre-Registration Expenses
  14. Medical insurance
  15. Utility Expenses
  16. Medical insurance
  17. Investment in National Pension Scheme up to Rs 50 Thousand
  18. Rent Allowance 80GG up to Rs 2.5 Lakhs or 60 thousand
  19. Relief under Section 87A
Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you,?let us?talk  
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We have been receiving requests from our ever-loving fans to write an article on starting an online liquor business in India, so here it is. Note: To carry out liquor business online, You need to have at least one brick and mortar shop. Regulatory Barriers
In India, the laws, rules & regulations relating to liquor licensing are a subject of each state government in India. The government makes rules and regulations relating to the selling time for sale of liquor, the age limit above which liquor can be sold to persons and the place of sale of liquor.?Online sale of liquor across states will be subject to multiple?inter-state taxes.
  • Food Safety and Standards (Packaging and Labeling) Regulation established by FSSA
  • Labeling rules
  • Alcohol Laws of India
  • State to state laws and regulations
License:
  • Trade License
  • Liquor License
  • License from the excise Department
  • No Objection Certificate needs to be procured from the authorities (like: Police department)
Business Registration: You can set up such business as a PVT. LTD. company. You can apply for provisional registration certificate for any item that does not require an industrial license. A provisional registration certificate will be given to you. Note provisional registration certificate is valid only for short term. Once you get all the clearance, you can apply for permanent registration. Customs Duties:? Custom duties and Taxes Cost on the production and distribution side can be hard to track given that the IMFL industry is largely controlled by the state with interventions Shops and Establishment: ? Once you fix up on the location to have the shop, Shops and Establishments Act, is enacted by every state in India to regulate conditions of work, and to provide for regulation of the employers and rights of the employees in un-organized sector of employment and other establishments. By doing this registration, you will be legally allowed to have the gym operations from the selected location. Contracts and Agreements between key players:
  • Primarily farmers: who grow ingredients such as barley, hops, apples, grapes and sugar
  • Producers: Companies that manufacture alcohol, managing processes such as brewing, distillation, and bottling
  • Distributors & Wholesalers: Intermediaries who connect producers and vendors, typically storing and transporting the product
  • Vendors: Sellers of alcohol ? both on-licence (where drinks are bought and consumed on the premises e.g. pubs, club and restaurants) and off-licence (where the drinks are bought and then taken away to be consumed e.g. supermarkets)
  • Dealers: As a liquor dealership, there are other contracts that must be notarized.
  • Input Suppliers/Contractors: Companies that supply products and services to any of the above e.g. providing farm machinery, distillation equipment, freight services, marketing, consultancy, lobbying etc.
Terms of service You are required to have the Terms of services document in place, that has all the required information about services like Age verification and other rules. Taxes:
  • VAT
  • Sales Tax
  • Service tax
  • Taxes differs from state to state, it is constantly used as a moral and legal foundation for restrictive policies.
  • Imported Foreign Liquor (IFL) shall be heavily taxed and regulated by federal government.
  • Today average customs duties on IFL remain as high as 150 per cent
  • Liquor trade between states is also difficult and costly. Taxation levels and accounting methods vary significantly from state to state.
Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you,?let us?talk        
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Why am I even talking about this? Well what happened in the most recent past was worth noting, this E-commerce startup based out in HSR layout Bangalore was importing goods from China, all set and done tools received successfully in Chennai and from there it was scheduled to be delivered to Bangalore office via road transport. But, goods did not move because one document was missing and that was e-Sugam. What is this e-Sugam? Well, now you are talking. Commercial Taxes Department in Karnataka has set up check posts on commercially important roads to keep a vigil over goods vehicles passing through, to ensure payment of taxes on corresponding transactions. The department introduced the concept of E-Sugham.
  • It is mandatory for every dealer to inform the department about a goods movement transaction (bulk) prior to commencement of the goods movement.
  • The dealer can inform the department by uploading the details in the format available on CTD website.
  • On upload of details, the system validates and generated an e-Delivery note. The dealer was required to carry three print outs of this electronic delivery note as original, duplicate and triplicate.
  • Since print outs were difficult to obtain by some dealers, the e-Delivery Note process was reformed to e-Sugam.
  • Under e-Sugam, the system on receipt of transaction details from the dealer, validates and generates a unique number called the e-Sugam number. This number then becomes the passport for the transport vehicle at the check-post.
  • The e-Sugam number is presented by the transporter to the check-post officer.
The enforcement officers are also no longer required to carry voluminous documents rather, they can obtain dealer wise information on the system and carry printout of only the doubtful transactions and cross verify the same. Note, this must be done every time there is goods movement into Karnataka by the dealer. So, how to register for e-Sugam? Depending on the nature of your business, while you register for VAT you can do the e-Sugam, which would be of no additional cost (as simple as checking the tick box). And, if you choose to do e-Sugam registration separately, you will have to spend INR 2000/- and this would take quite some time. At Wazzeer, we help startups prepare for all this from the start. #WazzeerSupportingYou -`
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