14 March 2014
M/s XYZ Pvt ltd co is carrying on trading business. The company has entered into contracts with online portals like Flipkart, Peeper fry etc. The sale transaction is as follows:
1. Customer order for the product using online portal say flipkart.
2. Flipkart intimates about this to M/s.XYZ Pvt Ltd.
3. M/s XYZ delivers the product to the customer via Flipkart's delivery team.
4. Cash is collected by Flipkart.
5. Flipkart deducts a commission of certain percentage and remits the balance amount to M/s. XYZ pvt Ltd.
Query:
1.Does the Commission paid by M/s XYZ Pvt Ltd to Flipkart attract provisions of 194H.
2. If it does so, how should it comply if the commission is entirely deducted by flipkart.