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BUSINESS OPPORTUNITY
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FINANCIAL CONSIDERATION AFTER JOINING
VAT Registration and Octroi.
To carry out resale of Amway products, you may be required to register with the VAT authorities under the Value Added Tax (VAT) Act of the State in which you are carrying out this business. Under the VAT Act, there are certain threshold limits (given in Annexure IV) for the States in which Amway is operating.
In case you expect inter state sales, then you are required to register with the VAT authorities of the State in which you are carrying out this business under the Central Sales Tax (CST) Act. There are no threshold limits for registration under the CST Act, and you are expected to register under this Act from the time you intend to carry out the first interstate sale.
In case of resale of Amway products, you are expected to issue invoices to your customers, especially if you are registered for VAT purposes. However, if you are not registered for VAT and do not expect to reach the threshold limit of your state during the financial year, you need not issue invoices. In this case, you are expected to issue a Customer Receipt (SA-107-ID).
Any amount collected by you VAT/CST on invoices raised by you must be deposited by you at a nationalized bank and a copy of the deposit challan submitted along with your VAT/CST return to the VAT authorities.
However, before acting on the above information you are requested to consult your Sales Tax / VAT consultant in your respective states.
OCTROI
Octroi is a Municipal entry tax charged at the entry point of a town or city. This tax is payable in cash by the transporter of goods entering the city or town for commercial purposes. Octroi is payable only if the entry address or point of delivery of the goods being sold fall within the Municipal (Octroi) limits of the town or city. In case you are selling Amway products in any town or city where Octroi is applicable, then you may be required to pay this tax. However, no prior registration is required for payment of Octroi. Currently, Octroi is applicable only in the State of Maharashtra.
Applicable Income tax rates
The applicable INCOME tax rates in case of individuals# (Residents and Non-Residents)
Financial Year : 2007-2008
Assessment Year : 2008-2009
Income |
Male of age less than 65 years and Non residents |
Income equal to or less than Rs.1,10,000 |
Nil |
Income more than Rs. 1,10,000 but less than or equal to 1,50,000. |
10% of (Taxable income- Rs 1,10,000) |
Income more than Rs. 1,50,000 but less than or equal to 2,50,000. |
Rs 4000 +20% of (Taxable income- Rs 1,50,000) |
Income more than Rs. 2,50,000. |
Rs. 24000 + 30% of (Taxable income- Rs 2,50,000) |
Income |
Resident female of age less than 65 years. |
Income equal to or less than Rs.1,45,000 |
Nil |
Income more than Rs. 1,45,000 but less than or equal to 1,50,000. |
10% of (Taxable income- Rs 1,45,000) |
Income more than Rs. 1,50,000 but less than or equal to 1,85,000. |
500+ 20% of (Taxable income- Rs 1,50,000) |
Income more than Rs. 2,50,000. |
20,500 + 30% of (Taxable income- Rs 2,50,000) |
Income |
Resident senior citizen i..e individual having age of 65 years or more |
Income equal to or less than Rs.1,85,000 |
Nil |
Income more than Rs. 1,85,000 but less than or equal to 2,50,000. |
20% of (Taxable income- Rs 1,85,000) |
Income more than Rs. 2,50,000. |
Rs. 13000+ 30% of (Taxable income-Rs.2,50,000) |
Notes
- In addition to the above tax rates, surcharge @ 10% of the tax shall be levied where taxable income exceeds Rs. 1,000,000/-.
- Further, education cess @2% of the [tax plus surcharge (if any)] and secondary and higher education cess @ 1% of [tax plus surcharge (if any)] shall be levied irrespective of the level of the income.
- Standard deduction has been eliminated.
- Deduction from income is available for investments made up to Rs. 100,000/- in specified instruments i.e LIC premium, PPF, PF, NSCs, Repayment of housing loan etc.
Note: The views and the figures expressed here are for general information only, and should not be construed as conclusive support for any act of omission or commission on part of the Distributors.
Contact for further details
This is the information which is appropriate and relevant to ABOs as far as Sales Tax/VAT is concerned. For any other information required by them on Sales Tax/VAT, they can have their specific queries sent to the following IDs:
abraham_ninan@amway.com
dinesh_gora@amway.com
OR specifcally
For North -> h_ramesh@amway.com
For South -> manohar_shah@amway.com
For East -> prasenjit_raha@amway.com
For West -> harsh_khatri@amway.com
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