• Information on shops and establishment registration in Lucknow

Hi,

I have some queries related to shops and establishment registration in Lucknow, Uttar Pradesh. I am trying to get commercial leased line Internet connection for my Software services and consultancy business.

For this, the Internet Service Provider is demanding the shop license copy. As advised by few consultants, I received conflicting information that I wish to clarify about taking shop license:

1) Do I need to first register as proprietorship firm in order to get shops license ? I have conflicting information from different sources that it is not mandatory and there is no as such registration for proprietorship firm. Some said it is required.

2) A consultant mentioned that my residential property, after shops registration, will become commercial and I need to pay property tax at commercial rates. However the consultants are unable to provide information if a separate procedure is required to convert property from residential to commercial or not. How do I convert my property commercial ?

3) Another confusion is related electricity bill for which it seems commercial rates will apply and again consultants have no idea how to handle it. So, I would like to know how and within what time period do I need to apply for conversion to commercial electricity rates.

4) If later, I move my office to another location then will it be possible for me to revert back my property and electricity bill status to residential from commercial ? What is the procedure to convert a property back from commercial to residential ?

5) As an alternative, I tried applying for shops and establishment registration online myself using this website http://uplabouracts.in, but the application form is asking for proof of starting of business. This is separate from photo of shop front including surroundings. What kind of documents can be submitted as a proof of starting of business ? A consultant mentioned that I should apply for trade license. What kind of trade license is applicable for Software Services and Consultancy Business ?

I would greatly appreciate if the above mentioned queries can be resolved and a create path for registration can be explained.
Asked 7 years ago in Business Law

First answer received in 30 minutes.

Lawyers are available now to answer your questions.

4 Answers

1) there is no formal procedure to register a sole proprietorship as sole proprietorship is regarded as an extension of sole proprietor

2) once you obtain licencse under shop and establishment act from municipal corporation you would be be assessed to property tax at commercial rates . you have to apply to municipal corporation in this regard

3) you have to apply to service provider of electricity connection that you are using premises for commercial use

4) you have to inform muncipal corporation that premises are being used for residental purposes only and to convert commercial to residential use

5) you have to apply for service tax registration as business involved in providing service are required to collect and remit service tax

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

1) apply forPAN card in name of proprietary concern

2) you can file income tax returns of the concern

3) wait for GST to be enforced and then apply for registration

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

1. As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The details of information to be furnished shall be seen from the prescribed form itself.

2. While planning to step into the world of business, you need to draw up not only your business plan, product/service model, financing options, but also make a comprehensive list of all the compulsory regulations that your business entity will have to comply with such as the taxation legislation, licensing requirements, etc.

Conversion of residential place to commercial place will depend if you are the owner or tenant in the property where the intended business is proposed to start.

3. This is again the local law. For commercial establishment the electricity consumption charges shall be accordingly ie., differing to the domestic usage.

4. Firstly you enter into a rental agreement between you as a proprietor of the proposed company with yourself as a owner or landlord of the property.

This arrangement shall answer your questions that may arise in the future.

5. You should be having a proposal of what kind of business you are going to do, even if it is online and the mode of business and plans of business.

So you may give a gist of your activities and name them as business activities, submit it in the form of an affidavit along with the application for registration under shops and establishment and Comply with necessary formalities and the rules therein.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

1) We have not crossed the Rs. 9 Lakh revenue threshold that allows service tax registration waiver. Is it possible to furnish any other proof in place of service tax registration ?

Service tax is a tax levied by Central Government of India on services provided or to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax.

Service tax provider can avail only exemption for the small service providers exemption in India.

The current service tax exemption limit is 10 lac Rupees per Annum for paying service tax but 9 lac Rupees turnover for the Service Tax Registration.

A small scale or individual service provider can enjoy service tax exemption, if its total turnover of taxable services does not go beyond Rs. 10 lakhs in a single a financial year.

• The recipients are exempted from paying service tax for the goods and services received from the service provider, if there is written proof indicating the value of the goods and materials and no credit of duty is paid on such goods and materials, and if the services have been rendered under the CENVAT

2) If service tax registration is the only option then is it a right time to register for service tax in view of the upcoming GST law ? Do you suggest to wait for GST law to be enforced and then register for it directly in next financial year ?

It depends on the prevailing atmosphere in your side. The promulgation of GST rules would enable you to identify more arena in this regard and the correct procedures to be followed subsequently, however that has nothing to do with the present situation.

3) Can I register service tax in name of my brand like "XYZ Consultancy Services" or the proprietorship registration for service tax is done in name of the applicant that is me ?

The registration should be made on the name of the firm/company which is the service provider and would charge service tax from the user

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer