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Two firms on one PAN, Goods and Services Tax - GST
|Two firms on one PAN|
I want to know that is there any implications if an individual opens two firms on his PAN ?
If yes, can he make sale and purchase between both firms ?
Is there duty evasion possibility?
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Showing Replies 1 to 5 of 5 Records
Sub-section (4) & 5 of Section 25 are relevant in the context of the query raised:
"(4) A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
(5) Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act."
W.r.t. third question about 'duty evasion possibility', I am of the view that one should NEVER indulge in duty-evasion or even, looking into possibility of duty-evasion.
Opening 2 firms in one PAN - pls note that you would not be able to take GST registration if oth these firms are operating from the same premises.
If operating from different premises registration can be taken and supplies between them will be liable
Also, for considering the turnover for checking registration requirement, the turnover of the PAN (INCLUDING THE SUPPLIES BETWEEN THE 2 GSTINS) is to be checked rather than the individual GSTIN.
So I am not sure of what kind of tax evasion are you referring to
Sec 25 of CGST Act permits to obtain more than one GSTIN under one PAN provided the place of business is different.
Request the querist to elaborate the query further.
What do you mean by "opens two firm" on his PAN? are you referring to taking two GST registration?